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 [email protected]. Along with business registration in Thailand, our scope of services extends to delivering the following to our local and international clients:
- Accounting Services for Thai and Foreign Businesses in Thailand
- Tax Registration and Filing for Thai and Foreign Businesses in Thailand
- Payroll Management and Assistance to Thai and Foreign Businesses in Thailand
- 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.
