Are you a foreign investor and want to open a travel business in Thailand? Then you must know that tourism is one of the country’s most lucrative businesses. Thailand is a fantastic place to visit not only for adventure but also for its cultural heritage. Many people enjoy visiting Bangkok, while others come to see the magnificent beaches made famous by foreign films. Thailand is a prominent tourist destination for its local culture, beach resorts, and gastronomic experience.
Thailand has a set of norms and regulations to follow, especially when the investments are predominantly foreign-made. The government continuously liberalizes commercial sectors. However, the International Business Act remains the primary legal resource for all foreign entrepreneurs willing to open a business in Thailand.
The Tourist Business and Guide Act governs the travel and tour guide industry in Thailand. To operate a travel agency in Thailand, the company must first get a Tourist Business and Guide Registration Office license from the Tourism Authority of Thailand (TAT).
The major steps for starting a travel business in Thailand are as follows:
Incorporate a Company
A limited company is a business form commonly used by those who want to start a travel business in Thailand. It requires at least three founders and shareholders, and a foreign company that is either not registered in Thailand or is registered in Thailand but has a foreign shareholding of 50% or more.
Obtain the required Licence
Because of industry regulations, you must apply for a TAT license according to Thai authorities’ instructions. One of our Thai company formation agents may assist you with the appropriate paperwork.
Set up an Office
This is typically done by renting office space in the desired location. While travel agencies can also offer their services online, having a physical presence in tourist areas can bring in more clients. However, this works especially if your company offers targeted packages.
Start your business
The new travel agency may now begin its operations and begin selling vacation packages to its clients. It is up to the business owners to decide what packages they will provide. Moreover, they may focus on one or many types of services.
Because of the language barrier, the processes for forming a company can seem daunting to overseas investors. Our team of Thailand company formation agents can assist foreign investors who want to launch a tourist firm. We can manage all of the necessary submissions. It can be the preparation of the company incorporation documents or conducting parts of the procedures on behalf of the foreign investor, if possible, using a power of attorney.
Eligibility: TAT License in Thailand
We suggest you form a legal entity, in order to start a travel agency in Thailand. You must complete the following conditions in order to get a TAT license:
- You must complete the Thai company registration procedure.
- The firm should have a presence in the country.
- At least half of the company’s executives should be Thai citizens.
- Citizens of Thailand must possess at least 51% of the company’s shares.
- The Managing Director must be at least 20 years old, live or work in Thailand, be able to obtain credits, and have no history of imprisonment.
- No cases of revocation of the company’s Tourism License.
Document Requirement: TAT License in Thailand
The following documents are essential to apply for a TAT license in order to open a travel agency in Thailand:
- TAT license application form with the company seal and signature of the Thai directors.
- According to the Civil and Commercial Code, the Certificate of Registration and the business’s objectives. More information on this topic is available from our Thai company registration experts.
- The Minister of Trade certifies a list of the company’s stockholders.
- The Minister of Trade certifies the rule or report of the business establishment’s meeting.
- A certified copy of the director’s personal ID card as well as his Thai residence.
- The company’s seal.
- Two images of the front desk.
- A map of the office.
- Proof of office ownership or possession.
- Power of Attorney.
- As security, a guarantee with cash or a cashier’s check is acceptable.
Conditions for Travel Business in Thailand
In Thailand, all businesses must register with the Department of Business Development and the Department of Revenue. It is essential to receive a tax identification number from the tax authorities within 60 days of registering a company. The company should be subject to corporate income tax, such as a private limited company. However, it can be any business type to create a travel agency.
Private limited businesses must have a minimum share value of 5 THB. Additionally, it should have at least three shareholders (at all times), and at least 25% of the share value must be paid in during company registration. A specific ratio of foreign/Thai nationals should maintain the company’s board of directors. Moreover, every foreign national put to work for the travel agency must have a valid work permit.
In Thailand, a travel agency is subject to the country’s regular business taxes. These include corporate income tax, value-added tax, stamp duty, withholding taxes, social security contributions, and others. The basic corporate income tax rate is 20%. Whereas, the usual VAT rate is 7%, with a 0% rate applicable to certain types of products and services.
VAT exemption is applicable to businesses with an annual turnover of less than 1.8 million THB. The tax year concludes on December 31. Companies must use a self-assessment system to disclose their earnings and file an annual corporate income tax return. The deadline for filing and tax payment is 150 days after the end of the accounting year.
In Thailand, trademark registration might benefit a travel business. Depending on the services investors can create a travel agency in either of these regions. When a travel agency grows, it can create multiple locations across the country to serve the needs of a wider spectrum of tourists.
Your Take!
Please contact our Thai company formation experts for further information on how to start a travel agency in Thailand. We can provide you with a wide range of business services, including virtual offices and help to open a bank account in Thailand. To book a free round of consultation, email us at [email protected].
