Starting A Business In Thailand: 5 Common Challenges To Overcome

This article offers the reader important information about setting up a business in Thailand.

If you have decided to spend the rest of your life in the Royal Kingdom of Thailand, it makes total sense to set up a business and do what you do best. Like any non-English-speaking country, Thailand has its own unique commercial laws, rules and regulations. With that in mind, here are a few common challenges that you might have to overcome when setting up a business in Thailand.

Thai Language

Not every Thai national speaks English and when dealing with the various ministries, misunderstandings are common. To set up your company, your chosen lawyers for Thai Board of Investment registration should have both fluency in English and Thailand to be able to facilitate your business registration. Dealing with Thai associates might be difficult. You may also want to enroll in an intense Thai language course and with lots of free practice, your Thai language skills will steadily improve.

Compliance

As you would expect, there are many complex laws for foreigners who set up businesses in Thailand and remaining compliant can be a major headache. This is one reason to use the services of an English-speaking lawyer, who will ensure that you are always compliant. The last thing you need is trouble with the authorities.

Finding Staff

It is not an easy thing to source Thai employees, especially if you don’t speak Thai. Fortunately, your lawyer would be able to source office staff and put you in touch with local providers, helping you to staff your new business. There are local recruitment agencies that can screen applicants and even carry out interviews on your behalf, bridging the language barrier.

Work Permit

Every foreigner that works in Thailand must have a work permit. Your Thai lawyer can facilitate a work permit that enables you to take up a hands-on approach to managing your business. There are serious penalties for working illegally in Thailand and that could lead to deportation and being blacklisted. The work permit is issued by the Ministry of Labour; it expires on the same date as your visa and both must be renewed (visa first). A local law firm can handle this for you, plus they can source bookkeepers and accountants to ensure that your tax returns are filed in good time.

Marketing

How do you set up effective marketing in a country where English is not the native language? You will need to forge a working relationship with a leading digital marketing agency; they can put together an aggressive digital marketing plan that targets your groups. Either that, or you have to create an in-house marketing department, which would be very costly and it might take too long for the team to get up to speed.

If you have a sound business plan and the necessary funds to make it happen, talk to an English-speaking lawyer in Bangkok about the best way forward. You can set up a 100% foreign owned company, or form a partnership with a Thai national, as this offers some benefits.