Top 5 Challenges of Setting up Business in Thailand
It amazes me when a foreigner takes the step of setting up business in Thailand. I wonder how much courage and determination it would have taken to come to this decision. Apart from budget, there are so many things that need to be considered. For example, the culture; it is one of the most essential aspects, especially when you are doing business in Thailand. You will need to have a good understanding of their culture before getting started. Let’s have a look at some challenges that you are likely to face when starting entrepreneurship in Thailand;
- Getting Started with a Business: The biggest challenge is to get things rolled. There are several steps that need to be followed in order to register your company as one of the legal entities in Thailand. This includes, registering the company’s name, getting a corporate seal and depositing funds in the bank, etc. And here is where our legal experts and lawyers come to help.
- Registration of the Company: Foreigners usually cannot hold 100% ownership of business in Thailand. In that case you must fairly setup your voting rights in the Kingdom. And one of the best ways of doing that is marrying a Thai. But then if your company is BOI registered then you can have 100% ownership. A foreigner who is willing to start a business, they must apply for 100% foreign own company in Thailand. This way you can save yourself from being ditched by fraudsters while having complete control over your business.
- Thai Language: Actually, this should have been listed no.1. Since Thais are very particular about their culture, you will find most of them rigid about their language too. You will hardly find English speaking people there. In order to initiate a better communication with the Thais, you will either require taking up a few classes or finding a Thai partner who will work as an interpreter.
- Finding a Trustworthy Thai Partner: Not all who show interest in your business prospect can be trusted. A lot of cases has been registered by potential businessmen who have ended up choosing wrong partners and ditched terribly. So, you must watch-out. You can find one through social media community. Don’t just jump into a conclusion in the first-go. Take some time, try to know the person and then propose your business idea.
- Dealing with Permits Related to Construction: Typically, there are eight procedures that should be undertaken to obtain construction permits. It takes 157 days approx to complete the entire process. Note, it is the local Metropolitan Authority inspects, permits and approves the construction