Thailand or officially known as The Kingdom of Thailand is a country located in Southeast Asia. Thailand is bounded to the North by Myanmar and Laos, to the East by Laos and Cambodia, to the South by the Gulf of Thailand and Malaysia, and to the West by the Andaman Sea and the Southern limits of Myanmar.
By the area of the land, Thailand stands at 50th number in the world and on the 22nd number for the most populous country in the world. It has a population of over 66 million people, Thailand is categorized as a newly industrialized economy. The official language of Thailand is ‘Thai’ whereas the other spoken languages are Isan, Pak Tai, and Kam Mueang.
|Benefits of Doing Business in Thailand||The Drawbacks of Doing Business in Thailand|
|Steady growth.||Indirect Communication.|
|Abundant natural resources.||Protecting investors.|
|Easy FDI policies.||Trading across borders can be time-consuming and bureaucratic.|
|Strong corporate governance.||Enforcing contracts and resolving insolvency takes months, with a low rate of recovery.|
|Incentives for foreign investors.||–|
Advantages of Doing Business in Thailand
- Best Place for Startups
Thailand is one of the countries in the world which is currently thriving with startups. It is because the country is certainly considered to be the shelter for many startup entrepreneurs. Thailand is moving ahead with the latest innovations and experiments and is growing along with the large technology companies, trade gurus, and business solenoids. Because of these reasons the competition for startups is also really high in this region.
Also, because of the difference in language, people usually use the Thai Language SEO services which help your business to stay on top even if you are not relevant or an expert in speaking the country’s common language. But, one should keep in mind to put up a healthy and positive impression among the Thai population. This can be done by optimizing your website using the Thai language.
Thailand allows the citizens of other countries to own a company in Thailand and the government permits 100% of foreign ownership. Although, there are also some industries that are only restricted to Thai citizens.
- Welcoming Atmosphere for Ex-pats and Entrepreneurs
Thailand has been considered among the list of most preferable cities for experts who are willing to settle as well as establish their own business in South East Asia. The country itself is blessed and equipped with many things to offer both to the ex-pats and also to the local entrepreneurs.
Foreign investors are also believed to do well in Thailand because of its infrastructure and climate which is considered quite warm and welcoming. There can be a communication barrier because of the difference in language, but the nature and positivity of the people are quite overwhelming, cooperative, and cheerful.
Whether you are a foreigner visiting Thailand for holiday or for any business activity, the government has no acute limitations or restrictions. Thailand was in fact praised in 2012 for being one of the most undemanding and straightforward countries in the world to do business, considering that the country’s bureaucratic process and the registering costs are very low compared to the other countries. It is one of the major reasons to draw foreign investors to reside in Thailand.
- Affordable Standard of Living
Entrepreneurs in Thailand will never face difficulty in stretching their system of target customers, as the whole country is an attractive destination to tourists and locals because of the easy and economic way of living.
The country is quite cheap for food and daily shopping with simply a variety. Hotels and other social facilities are also cheap. Thailand has a population of around 67 million people, which can be considered as a solid consumer base for every business.
- Proliferate Educated Workforce
Thailand has an excellent number of an educated workforce. As the workforce of Thailand has access to some academic advantages, therefore more and more people are educated, therefore leading your business to grow and achieve success. The country also boasts of having a high population of Thai nationals who have certainly qualified from post-secondary education.
Also, there are many Thai citizens who have completed their higher education from countries such as Canada, United States, Australia, the United Kingdom which usually have the best educational institutions. This can also lead to that most of these people if hired will be easily capable of speaking in the English language which will be easy to understand.
- Developing Tourism Industry
Thailand has a prosperous tourism industry. If you probably settle your business which caters around tourism, a large population of tourists can be entertained, turning your business with huge rewards.
Thailand is often considered as one of the favorite places of the Westerners. If settling for a business in this field, your business will have the surety to touch heights.
Disadvantages of Doing Business in Thailand
- Soaring Tax Rates
Corporate Income tax in Thailand is undeniably very high, it is nearly around 30%. This is the reason that corporate tax is considered as one of the highest tax rates in the country. If you are willing to establish your business in Thailand, keep in mind the high corporate income tax rate.
- Complicated Legal Process
Thailand has very complicated governmental surveys and interventions. The formalities of registering your business, specifically as a foreign investor, is quite exhausting. If you want to avoid the hassle, you can hire a business lawyer or a professional business consulting agency which certainly has a high reputation in the country.
- High Overtime for Workers
Thailand strictly follows the policy of eight hours a day as their working hours. However, if the worker or employee needs to extend their work hours, then the business owner must know that they need to pay 3 times the normal rate of overtime, which is certainly high.
- Problems with Construction Permits
Constructing permits in Thailand can be quite unsettling at times for a long period of time. The settlement of such permits many times takes at least 157 days in which you can almost start your business.
Applying for a construction permit is usually looked after by the local Metropolitan Authorities. It will include the approval for the construction of buildings for the business (if needed), obtaining other permits, and also for passing the inspection round.
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.