Business Regulations in Thailand
Updated on Wednesday 04th January 2017
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Thailand has always been a suitable choice for foreigners who wanted to start a business in the country and to create an excellent presence on the market. The interesting culture and lifestyle, besides the flourishing economy and numerous business opportunities, are among the aspects to consider when moving to Thailand. In order to properly function on the Thai market, no matter the chosen area, you should consider the rules and the regulations of the country related to the business environment. Our lawyers in Thailand can explain these matters and can prepare the needed documentation for any overseas citizen who wants to establish in the country.
Register your company in Thailand
Foreign investors who want to set up a business in Thailand should ask for assistance and guidance before making any plans. A law firm or a specialized company in such matters are recommended to all overseas investors who decide to do certain activities in Thailand. Besides reserving a name for your company and creating the Memorandum of Association, you should register the business for VAT at the local Trade Register. The entire registration process is quite easy and can be done within 7 working days.
Obtain the necessary license for your business in Thailand
If you have decided to open a bar or a restaurant in Thailand, then expect to make money and to prosper. Many foreign entrepreneurs prefer this kind of business because they can properly combine their rich culture and cuisine with the Thai traditions, a successful mix preferred by the citizens in the country. Before any movement, it is recommended to obtain the liquor license in Thailand if you want to sell alcohol beverages. The District Office in Thailand will ask for certain documents, such as the company’s VAT certificate, the performa invoice and the power of attorney among many other papers. The license is available for one year, with the possibility to renew it right away.
Individuals who want to open an electronics company in Thailand will need a specific license issued by the Foreign Trade Department of the Ministry of Commerce. This kind of document is necessary to import and export electronics, according to the laws in the country. As for the double taxation treaties, it is good to know that Thailand has signed agreements with more than 40 countries worldwide, to avoid the double taxation. Overseas investors can repatriate their revenues made from their electronic business at low expenses based on their home countries' double tax treaties with Thailand.
Taxation system in Thailand
The Thai Revenue Code deals and regulates the VAT, the income tax and the Specific Business Tax in Thailand. People who want to open a business in oil and petroleum field should know that the income tax rate is 50%. The corporate income tax represents 20% and the capital gains with recipients from overseas are levied with 20% rate. A real estate tax is available for selling and renting properties in Thailand and it is set at a 12,5% rate. Our Thai lawyers remind that there are many tax exemptions in the country, and can provide you with the necessary information in this matter and about the entire taxation system in Thailand.
Foreign investments in Thailand
Thailand’s economy is developing daily and foreign investments are helping in this important field for many years. The attractive and dynamic market is absolutely an important feature when deciding to do business in Thailand. The foreign direct investments in Thailand have tripled in 2015 and the same numbers are expected to outline the situation in 2016, due to a strong industry which is continuously developing. Investing in Thailand means considering the BOI’s (Thai Board of Investments) main incentives for the important industries in the country. Besides that, the government policies have always promoted the strong investment background and the free trade. The skilled workforce, the lack of restrictions in the manufacturing field and the excellent geographic location of Thailand are important aspects to consider when investing in the country.
Workforce in Thailand
Overseas businessmen who want to establish their presence in Thailand have the possibility to hire the available and skilled workforce in the country. There are many young people, highly trained and experienced in different areas of interest. Besides that, hiring local workforce can offer different privileges for the employers. It is good to know that Thailand’s Employment Laws allow companies to hire foreign staff, if they have the proper work permit.
You are invited to contact our Thai law firm for additional information about the business regulations in Thailand.