|
Setting up a Business
|
|
What You
Need to Know About Setting up a Business in Thailand |
|
The following is an overview of establishing a
business in Thailand.
As in most countries, there are three kinds of business
organizations in Thailand: Sole proprietorships,
partnerships, and limited companies. The most popular
form of business organization among foreign investors is the private
limited company.
Private limited companies require a minimum of seven promoters and
must file a memorandum of association, convene a statutory meeting,
register the company, and obtain a company income tax identity card.
They must also follow accounting procedures specified in the Civil
and Commercial code, the Revenue Code and the Accounts Act. A
balance sheet must be prepared once a year and filed with the
Department of Revenue and Commercial Registration. In addition,
companies are required to withhold income tax from the salary of all
regular employees.
The Ministry of Industry administers The Factory Act, which governs
factory construction and operation, as well as safety and
pollution-control requirements. In some cases, factories do not
require licenses, in other instances the requirement is simply to
notify officials in advance of start-up, and in some cases licenses
are required prior to commencing operations. Licenses are valid for
five years, and are renewable.
Thailand recognizes three kinds of intellectual property
rights: patents, trademarks, and copyrights.
The Patent Act protects both inventions and product designs and
pharmaceuticals. The Copyright Act protects literary, artistic
works, and performance rights, by making it unlawful to reproduce or
publish such works without the owner's permission. The Trademark Act
governs registration of, and provides protection for, trademarks.
The Alien Occupation Law requires all foreigners working in Thailand
to obtain a Work Permit prior to starting work in the Kingdom,
except when they are applying under the Investment Promotion Law, in
which case they have 30 days to apply.
Non-Immigrant visas provide the holder with eligibility to apply for
a work permit, and allow the holder to work while the work permit
application is being considered.
Through the links below, you can learn more about topics such as
industrial licensing, taxation, patents and trademarks ,
and the cost of doing business in Thailand. You can also find
out about the status of Thai infrastructure, including
facilities such as airports, deep sea ports, and highways, and the
availability of power, water and telecommunications.
In addition, there is a link to a page of statistics, which displays
tables of utility, communications and labor costs, tax rates,
information about air, sea, rail and road freight pricing, and
information about availability and cost of land within industrial
estates. Other charts and tables provide costs of establishing and
running an office in Bangkok, and the results of a survey of
expatriate living costs in Bangkok.
This page also contains information about industrial production of
selected products in Thailand, tables breaking down Thai imports and
exports by product and a table displaying interest rate movements
for the past 5 years.
By the time you have finished visiting all these pages, you will
have a complete picture about the business climate in Thailand.
Typical Costs
of Starting and Operating a Business
|
|
Typical Costs
of Starting a Business
(2004)
|
Cost |
Baht |
US $ |
1. Visas(1) |
Work permit (new)
14 days |
750/1,500/3,000 |
19/38/75 |
One year visa
30 days |
1,900 |
48 |
Re-entry visa 2 days |
1,000*/3,800** |
25*/96** |
Notes:
* relects price for single re-entry ** relects price
for multiple re-rentry permit |
2. Registration
(Official Government Fee) |
Company
registration
21 days |
5,500/1 million(*) (275,000
maximum) |
138/US$25,000(*) (US$6,875
maximum) |
List 2 Alien
business license, 60 days |
40,000-500,000 |
1,006-12,581 |
List 3 Alien business license, 60
days |
20,000-250,000 |
503-6,291 |
Factory license 30
days |
500-60,000 |
13-1,500 |
2a.
Registration (Typical fee charged by a law firm to
process)(1) |
Company
registration, 15 days |
40,000 |
1,006 |
Alien business
license |
200,000 |
5,032 |
Factory license, 30
days |
100,000 |
2,516 |
Note:
(*) = registered capital |
3.Accounting(1) |
Tax returns and VAT |
20,000
yearly |
503 |
Translation, per
page |
1.400 |
35 |
Review/draft
contracts and agreements |
35,000
up |
880 |
4. Office achieved
rents (2) (As of Q1, 2004) (Baht/sq.m/mth) |
|
Central Business District |
Non-CBD |
Grade A |
477
(US$12.18) |
400
(US$10.21) |
Grade B |
346
(US$ 8.83) |
293
(US$7.48) |
Notes:
These rents are inclusive of management fees and
air-conditioning.
The rent-free period ranges
between one to two months.
Grade A indicates superior
premises, Grade B somewhat less so. |
|
|
|
|