How to Register a Small Business in Thailand in 2024?

 

As one of the leading corporate law and accounting firms in Thailand, we frequently receive consultation requests from Thai and foreign nationals. Most investors, especially foreigners, seek small and medium-sized business registration consultations. This article written from the inputs of our legal consultants will guide readers throughout the process of registering small businesses in Thailand in 2024.

What is a Small Business in Thailand?

Various determinants decide the size of a business. Sometimes, it can be the amount of investment or registered capital, manpower, or infrastructure required to conduct the business or the government identification of the scale of the business.

When in Thailand, small and medium-sized business encompasses all these factors. If your planned business holds the following features, you can identify it as a small business idea in Thailand:

Therefore, it is not only about the investment, but majorly, the annual revenue and number of people working for the business that primarily define the scale of a business.

So what will be the scale of your business in Thailand – micro, small, or medium? If you are still confused, feel free to connect with the best corporate law consultants in Thailand!

Process of Registering a Small Business in Thailand in 2024

The process of business registration in Thailand of all scales typically follows the same route. Talking about 2024, there has not been any change in the process as such. However, there are certain additions to the benefits for foreign investors from the Board of Investment of Thailand. A comprehensive description of the process of small business registration in Thailand in 2024 is as follows:

Step 1: Choose a Legal Structure and Check your Capital

When starting a business, decide on an appropriate legal structure, such as a limited company, that requires registration with the Ministry of Commerce. Note that foreign investors can never go for a sole proprietorship firm and they have to employ a Thai partner as a stakeholder for their business in Thailand.

Certain businesses may have minimum capital prerequisites. In cases where such requirements exist, ensure you possess sufficient funds to meet them.

For detailed and extended support, feel free to connect with the best business registration professionals in Thailand.

Step 2: Apply for Business Visa and Work Permit

To conduct business in Thailand, it is essential to secure the appropriate visa, typically a non-immigrant business visa. Subsequently, a work permit is also necessary.

For the most up-to-date information and requirements, it is advisable to consult the Thai embassy or consulate. Contact reliable business visa and work permit consultants in Thailand.

Step 3: Go for Business Registration

To formally establish your business, the initial step is to register it with the Department of Business Development, which falls under the jurisdiction of the Ministry of Commerce.

This process involves selecting a suitable business name, verifying its availability, and subsequently completing the registration formalities.

Step 4: Apply for Tax Registration

To ensure compliance with tax regulations, it’s essential to register with the Revenue Department for tax purposes. This process entails obtaining a tax identification number (tax ID) and familiarizing yourself with the tax liabilities and responsibilities associated with your business operations.

If you are a foreign investor, it will be a wise decision to go on a consultation with an experienced tax consultant and practitioner in Thailand.

Step 5: Select Location and Lease Business Premises

When it comes to your business, it’s crucial to select a location that aligns with your needs. If leasing space is part of your plan, be diligent in verifying that the lease agreements adhere to all relevant local regulations.

Step 6: Apply for Licenses and Permits

The specific licenses and permits required for your business may vary based on its nature. To ensure compliance, it is advisable to consult with appropriate authorities or enlist the assistance of a local consultant who can guide the process.

Step 7: Open a Corporate Bank Account

To register a business in Thailand, opening a business bank account is frequently a prerequisite.

There are certain legal considerations to be taken into account and the most important of them are as follows:

Foreign Business Act (FBA)

It is essential to familiarize yourself with the potential limitations outlined in the Foreign Business Act for Foreign Investors in Thailand. Certain business activities may be subject to restrictions, and in some cases, foreigners may need to acquire specific permissions to engage in certain business activities.

Land Ownership

Generally, foreign individuals are restricted from owning land in Thailand. However, alternative options exist, such as leasing land for extended periods. You may consult with 

Intellectual Property

To safeguard your intellectual property, consider registering trademarks and patents when appropriate. By taking these proactive measures, you can ensure the protection of your unique creations and ideas.

Small Business Ideas in Thailand in 2024

We can only help you with ideas based on the market dynamics and industry trends ongoing in Thailand. It is your capabilities, investment potential, and subject matter expertise that should guide you in selecting the most suitable business for you in Thailand.

From our experience, we have learned well that investors primarily focus on Return on Investment (ROI) when doing business in Thailand. Especially, foreign investors. Based on this ground, we have categorized our suggestions into three categories, viz, fast ROI, huge ROI, and steady ROI.

Fast ROI Generating Small Business in Thailand

In this category, we will share the business opportunities that can start bringing in profits for you quickly, as soon as you register your business in Thailand. Irrespective of the amount of profit, be assured that you will start making profits right away!

Consulting Businesses – All you need to do is gain industry insights, create some local contacts, and start guiding your clients in the industry you are specialized in. It can be an engineering or architecture consulting firm, financial consulting, or real estate consulting business.

Online Education Businesses – The digital ecosystem of Thailand has leaped to a growth of almost 75% since 2021 in terms of penetration and user activation. People here are now relying greatly on online support for their purchases, banking as well as education. Therefore, launching online courses or coaching classes will need a relatively small investment and team but you will start making money very quickly.

Online Business Application Development – As already discussed the digital ecosystem of Thailand is evolving rapidly. Therefore, along with users, many businesses are ready to render their services to the Thai market. To do so, they need to connect with people through the digital interface, For this, they will need websites and applications. If you are planning to start a website or application development agency in Thailand, you will surely start making money very quickly.

High ROI generating Small Business in Thailand

This section will present you with ideas for small businesses in Thailand that will require a relatively small amount of investment and capital but can yield high ROIs. Depending upon your business goal, it can be a short or long-term venture, but as long as your business survives, it will ensure profit for you.

Health and Wellness Training – Thailand is one of the most sought-after locations in the world where visitors from across the world visit for mental and health rejuvenation. According to projections, the industry will grow by 9.35% by 2027. Therefore, this one-time-investment type of business can ensure high ROI for you in Thailand.

Travel and Tourism Business – We all know that Thailand is a global tourist hub. Owing to this reason it is continuously registering a CAGR growth of almost 4% annually in a consistent pattern. This makes the travel and tourism business a source of high ROI that can go higher if you can take it online. To start with the minimum investment, start as a tourist guide!

Here is how you can start a travel business in Thailand!

Designing, Copywriting, and Online Marketing Services – All you need is a website to market your services. Rest, the internet will do it for you! As the digital ecosystem in Thailand is growing rapidly, many businesses are switching from conventional to digital marketing processes. To implement the same effectively, they will need design, copywriting, and online marketing services. Generally, these services are outsourced to save the investment on resources and manpower. 

Steady ROI generating Small Business in Thailand

Be it a short-term or long-term venture, these businesses will constantly generate revenue for you. Typically, such types of steady ROI-generating businesses must align with the regular and daily necessities or lifestyle of the local region. It may not be always true either!

IT and Digital Support – Although the information technology and digital infrastructure of Thailand are expanding rapidly, yet, there is still a long gap between the requirements and local skills in meeting so. Therefore, businesses providing IT and Digital support will continuously generate revenue ever since its inception. Businesses can have a fixed set of clients that will be paying for the services on a monthly, quarterly, half-yearly, or annual basis.

Food and Beverage Business – In addition to being a tourist hub, Thailand is also a place of permanent residence for many foreigners. Therefore, the variety of cuisine that your food business can serve in Thailand can be wide and welcomed warmly by people staying there. You can encash the food fidelity of tourists and residents of Thailand to generate a steady ROI around the year.

Home Improvement or Handyman Services – This is a great source of constant revenue generation as this type of business can expand its scope of operations across a wide range. Starting from small furniture, mechanical, or electrical repairs, the scope can extend to complete home renovations generating a steady source of revenue.

What Small Business Do You Wish to Register in Thailand in 2024?

Now, you know the process with the most promising small business opportunities in Thailand. Depending upon your budget, willingness to spend on manpower, and target for ROI, either you can select from our list of suggestions or move to other options as well.

Whatever your decision, we would be delighted to assist you with our services to guide you through the best small business registration process in Thailand. For free consultation, simply email us at officer@konradlegal.com. Along with business registration in Thailand, our scope of services extends to delivering the following to our local and international clients:

1. Accounting Services for Thai and Foreign Businesses in Thailand
2. Tax Registration and Filing for Thai and Foreign Businesses in Thailand
3. Payroll Management and Assistance to Thai and Foreign Businesses in Thailand
4. Documentation, Licensing, and Notarization for Thai and Foreign Businesses in Thailand

All you have to do is to contact us with your business idea. Henceforth, our team will prepare, compile, and assist you throughout the business registration process. After incorporation, we have an expert team to look after your bookkeeping, accounting, taxation, and payroll. You may call and book an appointment at +66 2626-0277/0266 during our office hours, i.e., Monday – Friday from 09:00 AM to 06:00 PM.

Company Registration for Foreign Investors in Thailand in 2024

 

Thailand is rapidly growing to be a hub of global investors. Foreign Direct Investment in Thailand increased by 50409.04 THB Million in the third quarter of 2023. This indicates the tenacity of foreign investors in exploring business opportunities and going for their company registration in Thailand, which will continue in 2024 as well.

Are you one of such investors and planning to establish or expand your business empire in Thailand? Then this article will guide you throughout the process of company registration in Thailand in 2024 illuminating the crucial points of legal and statutory compliance.

What makes Thailand favorable for Foreign Investors in 2024?

For a long time, Thailand has been recognized as a desirable business destination because of its strategic location in Southeast Asia. It serves as a gateway to other markets in the region and has a well-connected transportation infrastructure.

In addition, the startup and tech industry in Thailand is booming, with large corporations establishing accelerators to drive growth in various sectors such as e-commerce, medical technology, and financial technology. The country also offers ease of doing business, a vibrant community of startups and digital businesses, and the necessary infrastructure for company growth.

Additionally, there are certain Board of Investment announcements made in 2023 that will surely make the process of company registration in Thailand easy for foreign investors in 2024. Click the image below the learn about them from our published article –

What should I consider when starting a company in Thailand?

Before launching a business in Thailand, it is essential to identify the most appropriate form of company for your undertaking.

Thai Limited Company

A Thai Limited Company is the most popular choice for international investors.

Under the Thai Civil and Commercial Code, companies can be 100% foreign-owned, depending on the type of business.

The Foreign Business Act (FBA) regulates foreign investment to safeguard Thai businesses. The FBA specifies which industries are open to foreign investment and what conditions they must follow.

For roughly 50 types of businesses, such as services and consulting, foreign companies cannot own more than 49.99% unless they obtain a Foreign Business License or a BOI promotion, which allows 100% foreign ownership.

Therefore, in these cases, they will need a Thai partner to hold the majority stake.

Board of Investment (BOI) Promotion

It is highly recommended to get a Board of Investment (BOI) certification when starting a company in Thailand. The primary purpose of the BOI, a government agency, is to attract foreign investment by providing unique advantages and benefits that are not available to regular businesses. These benefits include 100% foreign ownership, tax breaks, simplified visa procedures, and other perks.

A BOI certification can significantly speed up an entrepreneur’s entry into the Thai market and create a favorable climate for doing business. However, BOI certifications are only available for certain business activities.

Understanding Legal Requirements

Complying with the legal requirements is essential to starting a business in Thailand. Here are some key points to consider:

FOREIGN BUSINESS ACT

Familiarize yourself with Thailand’s Foreign Business Act, which outlines activities foreign companies cannot conduct. The FBA restricts foreigners or foreign-owned companies from undertaking over 50 categories of business activities in Thailand.

For more information on the Foreign Business Act of Thailand, please click here.

Learn about Thailand’s Foreign Business Act, which lists the activities foreign companies are prohibited from conducting. The FBA restricts foreigners or foreign-owned companies from undertaking over 50 categories of business activities in Thailand.

For more information, please read our blog post on the subject here.

THAI COMPANY REGISTRATION

Starting a business in Thailand requires you to register your company. This is a crucial step, and there are a few things you need to do to complete the process.

First, you will need to reserve a company name. You can do this through the Department of Business Development (DBD). Once you have reserved a name, you will need to prepare the necessary documents. These include the Memorandum of Association (MOA) and the list of shareholders.

The MOA is a legal document that outlines the structure and operations of your company. It includes information such as the company’s name, address, purpose, and capital structure. The list of shareholders is a document that lists the names and contact information of all of the shareholders in your company.

Once you have prepared the necessary documents, you can submit them to the DBD for registration. The DBD will review your documents and, on approval, will issue a certificate of incorporation. This certificate is proof that your company holds official registration and can legally operate in Thailand.

WORK PERMITS AND VISAS

Foreigners working or intending to work in Thailand must have the proper work permits and visa type.

It is important to note that Thailand has a broad definition of work and employment, which may or may not relate directly to revenue or income. For example, a foreigner can be a shareholder and/or a company director and not require a work permit. However, if they do something such as sign a document on behalf of the company, this will be considered work, and they must have a work permit.

To work in Thailand, you must apply for a Non-Immigrant ‘B’ or Business Visa and apply for a work permit upon entering Thailand.

PAID-UP CAPITAL AND BANK ACCOUNT

To legally work in Thailand, you may need to meet a minimum paid-up capital requirement. Opening a bank account with a commercial bank is also necessary.

What is the Process to Register a Business in Thailand?

Here is a breakdown of the process of registering your business in Thailand, which involves several steps. Go through our 10-point checklist that comprehensively covers you through the process of company registration in Thailand in 2024 –

How can Konrad Legal help?

For more information about how to start your business in Thailand in 2024, why not talk to one of our experts now?

Please note that this article is for information purposes only and does not constitute legal advice. For best results, email us at officer@konradlegal.com.

What Business to do in Thailand in 2024?

 

2023 has been a remarkable year for foreign investors in Thailand due to these reasons:

• Announcement of new schemes for foreign investors, including additional Corporate Income Tax exemption of up to 13 years. This is a significant incentive for foreign investors, as it can save them a significant amount of money.
• Provision of 10-year long-term Visas for foreign investors. This makes it easier for foreign investors to live and work in Thailand, which can be a major advantage for businesses that require a high level of expertise or specialized skills.
• Announcement of special privileges for the digital and creative economy to support the evolving Digital ecosystem of Thailand. This is a growing sector in Thailand, and the government is keen to attract foreign investment in this area.
• Focus on Smart Technologies in the Manufacturing Industry with special privileges of free trade zones, free ports, and trade facilitation for foreign investors. This is another area where the government is keen to attract foreign investment, as it sees smart technologies as a key driver of future economic growth.

The government is clearly committed to making the country a more attractive destination for foreign investment, and these new schemes and incentives are a testament to that commitment. The following are the outcomes of the several investor-friendly schemes and policies of the Royal Thai Government in alliance with the Board of Investment of Thailand:

• Approximately 700 billion US$ of foreign direct investment inflow: This is a significant amount of investment, and it is clear that Thailand is a desirable destination for foreign investors. The country's strong economy, political stability, and favorable business climate are all factors that contribute to its attractiveness to investors.
• More than 100 Greenfield Investment Projects: A Greenfield Investment is a new investment in a new location. This type of investment is often seen as a sign of confidence in the country's economy and future growth prospects. The fact that Thailand has attracted more than 100 Greenfield Investment projects in recent years is a testament to its appeal to foreign investors.
• Received establishment and expansion funds from 5800 digital startup projects: Thailand's digital economy is growing rapidly, and this is reflected in the number of digital startup projects that have received funding from foreign investors. The country's strong infrastructure, skilled workforce, and favorable regulatory environment are all factors that are attracting digital startups to Thailand.
• MNCs like Microsoft, Google, Meta, and Tesla are planning to set their bases in Thailand: The fact that major multinational corporations are planning to set up their bases in Thailand is a significant vote of confidence in the country's economy and future growth prospects. These companies are attracted to Thailand's strong economy, political stability, and favorable business climate.

Businesses that flourished in Thailand during 2023

• Tourism: The tourism industry in Thailand saw a 44% year-over-year (YoY) growth in 2023. This growth was driven by a number of factors, including the country's reopening to international tourists, the easing of travel restrictions, and the strong performance of the Thai baht. The tourism industry includes a wide range of businesses, such as tour guides and agencies, hotels, resorts, spas, and foreign currency exchange.
• Real Estate: The real estate industry in Thailand saw a 26% YoY growth in 2023. This growth was driven by a number of factors, including the country's strong economic growth, the low-interest rates, and the increasing demand for housing. The real estate industry includes a wide range of businesses, such as real estate developers and real estate agents.
• Herbal Products: The herbal products industry in Thailand saw a 33% YoY growth in 2023. This growth was driven by a number of factors, including the increasing demand for herbal medicines, fragrances, and spices. The herbal products industry includes a wide range of businesses, such as herbal medicine manufacturers, fragrance manufacturers, and spice traders.
• Electrical and Electronics: The electrical and electronic installations industry in Thailand saw a 25% YoY growth in 2023. This growth was driven by several factors, including the increasing demand for electrical and electronic products, the growth of the construction industry, and the government's investment in infrastructure. The electrical and electronic installations industry includes a wide range of businesses, such as electrical contractors, electronic product manufacturers, and electrical and electronic equipment suppliers.
• E-commerce: The e-commerce industry in Thailand saw a 19% YoY growth in 2023. This growth was driven by several factors, including the increasing use of the Internet, the growing popularity of online shopping, and the government's support for e-commerce. The e-commerce industry includes a wide range of businesses, such as online retailers, e-commerce platforms, and logistics companies.

Businesses that are expected to grow in Thailand in 2024

• Food Industry including food parks and restaurants: The food industry is expected to grow at a CAGR of 8.5% in 2024. This growth is being driven by the increasing demand for convenience food, healthy food, and food delivery services. Food parks and restaurants are expected to be the key drivers of this growth, as they offer a variety of food options and a convenient dining experience.
• Travel and tourism industry: The travel and tourism industry is expected to grow at a CAGR of 5.5% in 2024. This growth is being driven by the increasing disposable income of consumers, the growth of the middle class, and the rise of social media. Travel and tourism companies are expected to focus on developing new and innovative products and services to attract customers.
• Gems and Jewelry Industry: The gems and jewelry industry is expected to grow at a CAGR of 6.5% in 2024. This growth is being driven by the increasing demand for luxury goods, the growth of the middle class in emerging markets, and the rise of online shopping. Gems and jewelry companies are expected to focus on developing new and innovative products, as well as expanding their online presence.
• Automobile, Spare parts, and machinery: The automobile, spare parts, and machinery industry is expected to grow at a CAGR of 7.5% in 2024. This growth is being driven by the increasing demand for automobiles, the growth of the automotive industry in emerging markets, and the rise of electric vehicles. Automobile, spare parts, and machinery companies are expected to focus on developing new and innovative products, as well as expanding their global reach.
• Healthcare industry: The healthcare industry is expected to grow at a CAGR of 10.5% in 2024. This growth is being driven by the increasing aging population, the rising prevalence of chronic diseases, and the development of new and innovative medical technologies. Healthcare companies are expected to focus on developing new and innovative treatments, as well as expanding their global reach.

Are you planning to start your business in Thailand in 2024 in any of these suggested or any other industries?

Contact us for

• Drafting MOA, MOU, AOA, and Partnership Agreements
• Executing Power of Attorneys
• Translation and Notary Services
• Company Registration Process including Board of Investment Promotions
• Bookkeeping, Accounting, Tax, and Payroll support post your company incorporation

Simply email us your business plan at officer@konradlegal.com and our team of professionals will get in touch with you within one working day.