Thailand boasts of its business-friendly environment and ease-of-business set up, inviting thousands of local and foreign startups and entrepreneurs to establish their business in this attractive country. While company registration in Thailand for foreigners can be relatively easy, running a business in the nation is not necessarily a smooth journey. To increase the success rate of a company, here are seven essential tips foreign startups should consider when starting a business in Thailand.
Calculate the real expenses of a business startup in the country
Establishing a company according to the country’s legal requirements can be costly. Foreign entrepreneurs also need to remember that this nation is not their home country. Hence, if anything goes wrong, they will be at a disadvantage in a dispute especially when it comes to conflict of property or land ownership.
So startups need to ensure they have sufficient capital to complete the business set-up process during the initial years. It is slightly tricky for foreigners to get a bank loan in Thailand. On the other hand, investments from another agent can be risky. Notably, banks from first-world countries are reluctant to lend money for startups in Thailand. If the startups are not financially strong, they should reconsider setting up a company in Thailand.
Know your market
Startups should have a good understanding of their offerings, as well as the buyers’ wants and desires. They should conduct in-depth research on their market, competition, and industry trends in Thailand. Learn from their competitors and try to create a realistic evaluation of whether their business proposal can beat their competitors and stand out amongst seasoned companies.
Create a unique business proposition
In getting to know the market, startups should evaluate the available business opportunities in the country. They need to come up with a viable, profitable, and sustainable business proposition, which includes the business’s strategic location, products and services, and marketing plan. During this process, they need to be practical and realistic rather than idealistic.
Look for trustworthy Thai speaker
If foreign entrepreneurs do not understand the Thai language, it is best to hire a dependable Thai speaker. Getting a competent Thai speaker is crucial to make sure that startups have a complete understanding of what they are getting themselves into, especially when it comes to the signing of a relevant contract. Once the company is registered correctly, they also need to communicate with their Thai employees and present their ideas with decent Thai.
Search for the right Thai business partner
Selecting the wrong local business partner can cost the business owners their company, ergo, plenty of money. They should not underestimate due diligence and make sure to run a background check on their potential partner to avoid future issues.
Ensure each contract is binding legally
There are several situations where foreigners investing in business infrastructure in Thailand are eventually getting expelled by the landlord. To avoid such undesirable circumstances, startups should hire reliable lawyers to help them draw up a legally binding contract, which can protect their rights.
Respect the country
While it can be challenging to build genuine respect within the community of the nation, especially within the business circles, startups can try to ease up the process by reducing any adverse effects of their business on the local community. They should handle any complaints promptly.
Additionally, startups should stay compliant with Thailand’s business law and regulations; foreign employees should be ethical, apply for work permits, register for VAT, pay the necessary taxes, and respect the local culture.
Seeking help from company registration service providers in Thailand
Completing the company registration in Thailand for foreigners can be quite challenging for startups. Hence, it is advisable to set up their company with the help of a professional company registration service provider in Thailand for a smoother experience.