It can be scary to start a business in Thailand, but if you do it right, it can be a good way to make money. There are a lot of opportunities in the manufacturing and service industries, as well as in importing and exporting. Thailand is Southeast Asia’s second-largest economy, after Indonesia. The World Bank calls Thailand “one of the great development success stories” in terms of social and economic indicators. But before you even think about making this trip, you need to know the basics of Thai business law and rules. There’s a lot of wrong information on the Internet and in the mouths of mumbling ex-pats. Thailand’s economy is the second biggest in Southeast Asia and the 24th biggest in the world. It has a lot of business opportunities, but for an ex-pat, these are hidden under piles of paperwork and complicated registration processes. If you want to start a job in Thailand, you will need to know the local laws, be patient, and keep an open mind. It’s also helpful if you have a fellow ex-pat with experience or a lawyer to help you through the process.
Steps to start a business in Thailand
Before starting a business in Thailand, there are a few things to think about:
Have a business plan
If you have a good business plan and enough money, Thailand is a good place to start a job that will do well. If you know how to speak Thai, that will also help you a lot. As a consumerist society that is growing like China, Thailand has a growing middle class with money to spend and, as a result, business opportunities for people living outside of Thailand.
But if you want to start your own business in Thailand, you need to be patient, flexible, and aware of Thai culture and laws. If you don’t follow rules or procedures, you could go to jail or have to pay a big fine.
Location of your business
It’s also important to think about where you want to start your business since costs will be higher in Bangkok, especially if you want to rent a space in a prime location. Depending on your business, though, it may also be where you can make the most money. Before you go, do a lot of research and think about going to networking events and meet-up groups to meet people who can help you. It’s also a good idea to have a realistic plan for what to do if things don’t go the way you want them to.
How to start a business in Thailand legally
The Foreign Business Act of 1999 says how foreign companies can do business in Thailand. The Act lists the kinds of businesses and commercial and industrial work that foreign companies are not allowed to do. There are 3 “lists” of these things to do.
List 1 is made up of things that foreign companies can’t do:
- Newspaper publishing and TV and radio broadcasting
- Forestry and making things from wood.
- Taking Thai medicinal herbs out of the ground.
- Thai antiques are sold on the market and at auction.
The first group is made up of business areas that are considered “concerning national security or safety” and are off limits to foreign companies (unless they have permission from the government):
- Guns, bullets, gunpowder, and explosives.
- Making ships, planes, and other military vehicles.
- Making other forms of transportation on land, water, and in the air.
The second group is made up of businesses related to arts and culture, customs, native manufacturing, and handicrafts. These things are:
- Antique trading.
- Carvings in wood.
- Silk manufacturing.
- Making musical instruments in Thailand.
- Gold-ware, silverware, nielloware, bronzeware, and lacquerware are all made here.
- Making bowls or pottery out of clay.
The third group has to do with using natural resources or taking care of the environment. These things are:
- How cane sugar is made.
- Salt farming.
- Taking care of trees.
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