5 Pitfalls to Avoid during Company Formation in Thailand
Shaky? Worried, what if you fail? Well, company formation in Thailand is never an easy task, especially because it is an alien land and it is likely there will be potential pitfalls. The fact that you could take the decision of investing in a foreign market, it is in itself a great act of bravery. So my friend, stop over-thinking and do what you wish to do, but of course keeping your mind stable. Don’t get overly excited and forget to take the minimum precautions or forget things to do that are important. Like;
1. Getting Involved in an Economically Inviable Business
Quite a lot of people visit Thailand on a whim. This country being one happening place, offering ample business opportunities, who doesn’t dream of living and having a business set-up here. But in the excitement of doing so, sparing no thought about the viability of the business isn’t right. Ensure the demand for the products and services your business caters to so as to understand whether it will give you sufficient profit.
2. Ending up with a Wrong Business Partner
It is quite easier to get a business partner; in fact, he may have a perfect biodata for the position. But do you think this is enough? A business partner should be such on whom you can rely completely. Besides, he must share the similar business interest, it is only then he can perform well and will go that extra mile.
3. Not Meeting the Legal Requirements
Imagine you have the capital, a perfect business idea and you are all set for investment, but once you begin with the process you come to know that you do not meet the legal requirements of company formation in Thailand. It is suggested to be sure of your eligibility beforehand. There are legal firms in Thailand who provide consultation, sometimes free, to interested entrepreneurs.
4. Not Knowing the Thai Company Ownership Laws Well
People might have told you that foreigners cannot own a Thai company in their name. But did they also tell you the cases wherein 100% foreign ownership of Thai company is possible? Well, under the US-Thai Amity Treaty it is very much possible. In fact, if your company is BOI promoted you will be treated no lesser than a Thai national. To be wisely informed, seek a legal help.
5. Language Barrier
Either you take up a crash course in Thai or simple have a translator by your side. You may need to translate your documents into Thai in a few cases. However, your Thai business partner may help too, not in legal translation though.
