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Many foreigners come to Thailand, fall in love with the country and decide to stay and set up a small business to make an income that enables them to stay. You might have had numerous holidays in the Land of Smiles, and being an entrepreneur, you have a plan to set up a small company with your Thai girlfriend that will fund your lifestyle, and you wouldn’t be the first person to do this.
Partner with a Thai National
If, for example, you plan to set up a limited company, you will need a Thai partner who would hold at least 51% of the company shares, while you can hold the remaining 49%. If you are in a romantic relationship with a Thai, they would be an ideal business partner, and if you are not, a Thai lawyer would be able to connect you with suitable Thai partners.
Work Permit
If you are planning to work in the business, you will need a work permit, and this is something a Thai lawyer can arrange for you. If you plan to be a silent partner and hire Thai staff, then a work permit is not necessary. The work permit would run in conjunction with your visa, and both need to be renewed at the same time. Again, an English-speaking Thai lawyer can handle all of this on your behalf. If, for example, you hire a meeting room in Sukhumvit to motivate your Thai sales force, then you would need a work permit, as this is regarded as work.
Business Licences
Most businesses require a licence to operate; if, for example, you open a convenience store, you would need a licence to sell cigarettes and alcohol, the same for a restaurant. Ask a Thai lawyer about this, and they can tell you what is required, plus they can facilitate the application(s) if required. Click here for future trends in business, which might help with planning ahead.
Business Registration Options
There are 3 main options for business registration, which are as follows:
- Branch office – This is ideal for a foreign business that wishes to enter the Thai market. A non-trading entity, the business is not subject to local laws, and if you wish to carry out market research, this is the right type of business to register.
- Private limited company – A trading entity, this would likely include a Thai partner who would hold 51% of the company shares, while you hold the remaining 49%.
- Representative Office – Known as an RO, this would be ideal for a foreign company that wishes to open an office in Thailand.
We advise you to enlist the services of an English-speaking Thai lawyer who has extensive experience in assisting foreigners setting up businesses.
Board of Investment
The Thai Board of Investment (BOI) was set up to support foreign investors and entrepreneurs, and you should browse their website, which is full of useful information. Some industries are protected, and foreigners are not permitted to enter these sectors; this information can be found on the BOI website.
We hope the information in this article helps you navigate the business set-up process.