Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

Starting A Business In Thailand

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Thailand dragon at Phuket ThailandWhen you venture out to start a new business in Thailand, the journey can seem complicated at first, but once you know the in’s and out’s of setting up a business in Thailand, you will find your experience is financially rewarding.

There are several steps that you need to follow in order to adhere to Thailand’s laws, rules, and regulations. We will walk you through the steps to follow in order to set up a business in Thailand. Improve your finances and create the ultimate success by working for yourself and owning your own company. Thailand is the second largest country in the Southeast Asia economy; the possibilities are limitless there!

The Foreign Business Act of 1999 was created by late Majesty King Bhumibol Adulyadej, and this law was set up to protect Thailand nationalists and the economy. Thai business law and regulations need to be properly learned and retained, otherwise, large fines could be imposed — if new business protocols are not correctly followed.

Foreign Business Restrictions

Foreigners are not prohibited from owning businesses in Thailand. Although, it is important to know ahead of time that engaging in the following types of businesses is prohibited for foreigners in Thailand:

  • Property trading
  • Buddha and alms bowl manufacturing
  • Thai antique(s) — auctions and trades are prohibited
  • Foreigners cannot extract medicinal herbs
  • Thai ocean, marine life, and fishery businesses are prohibited
  • Foreigners cannot process wood deriving from forests or any natural forestry
  • Orchard, arable, and rice farming types of businesses are prohibited
  • Foreigners rearing livestock as a business is also prohibited
  • Television broadcasting, radio, or publishing (newspaper) is prohibited

What type of businesses can foreigners start in Thailand?

  • Limited Partnerships and/ or Registered Ordinaries
  • Limited Companies
  • Branch, Regional, or Representative Offices

You can read more about the specific types of businesses here.

‘Nominee Shareholders’ Are Prohibited

When foreigners begin to set up a company in Thailand, the words, nominee, and shareholder are common terms.  A ‘nominee shareholder’ is known as a ‘name only individual’ who doesn’t have a large financial interest or stake in the company.

Note* The Foreign Business Act of 1999, prohibits ‘nominee shareholder’ practices, this is illegal — punishable by imprisonment and possible fines. Foreigners can have control over a company, under a minority shareholder, although the Managing Director needs to allow this.

Pay Registration Fees And Follow Procedures

If you are looking at registering a company in Thailand, there will be registration fees due.  Private companies are required to have a minimum of seven shareholders, and they are also regulated by Commercial and Civil codes.

The business registration fees in Thailand can vary from 50 — 25,000 baht.

Nationals that are non-Thai can register public businesses, but the company must be 51% owned by a Thai national. Make sure that a minimum of half of your board is Thai if you want your public business registration process to run smoothly.

There are three ways foreigners can gain 100% control over a company in Thailand. The following methods can work:

  • Foreigners can get a foreign business license
  • Foreigners can gain this status through a promotion via the Board of Investment (BOI)
  • US citizens (only) can register via Treaty of Amity

Timeframe

If you are registering a private company, the timeframe to register your business in Thailand can take seven days, and it takes thirty days for a privately owned company to become registered.

Local Agency Help

Many foreigners find the Thai language barrier difficult, hence why many business owners don’t register companies in Thailand. There are local agencies that exist solely to limit this barrier. These local agencies can assist you when it comes to setting up a new business in Thailand.

Find out more information about local agency help at the Institute for Small and Medium Enterprise Development.

Steps To Register A Business In Thailand

  • Secure and reserve a company name
  • Next, gather and submit the following vital documents:
    • The Articles and Memorandum of Association
    • A list of all shareholders and an application form
    • Signatures of each Director involved (New Director Form)
    • Reservation of the company name
    • The Declaration of Business Operation form
    • Information regarding the company branches and office details

You may need to get your documents certified by the appropriate officials before you submit your business registration documents.

You will need to register your new business at the Thai Board of Investment. You can find more information regarding the registration process for new companies in Thailand here. You will also have access to financial incentives via Thailand investors.

Once you fill out all of the proper documents and send them to the right agencies in Thailand, you will need to notify Thailand’s tax authorities about recently registering your new business.  Before 60 days is up, you need to retrieve a tax id card for the newly registered business.

Business Registration Completion

After you’ve completed the registration process for your business, you need to make sure that you keep up with the labor regulations in Thailand at all times. Registering a business in Thailand is similar to registering a business in the US, considering there are many documents and much paperwork involved, along with fees, plus long wait times.

It can seem like a lot of work and a daunting experience when you are registering a business in Thailand for the first time, but with the right consultation of local Thailand agencies, knowing what documents to file, what fees to pay, and what laws to abide by, you can achieve lucrative success in Thailand before you know it!

An Alternate Method: Virtual Phone Numbers

If all of the aforementioned seems to be beyond your business’ reach, there may be an alternate method of setting up a business and establishing a presence in the Thai marketplace: Thailand virtual phone numbers. Thailand virtual phone numbers allow your business to route calls to a destination phone number. For instance, if you wanted to capture part of the Thai market, you can post a Thailand virtual phone number on your website, which is indistinguishable from phone numbers that originate in Thailand. Thai callers can then reach your business, where you can provide them with services and products to meet their needs. Consider contacting Global Call Forwarding for all of your virtual phone number needs today!

About the Author

Tom Senkus is a freelance writer with over fifteen years of experience. When he’s not writing, Tom is traveling the world and helping others experience the wonders of a life well-lived.

5 Pillars of Starting Your Dream Business in 2018

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If you happened to be frustrated with your day job a couple of decades back, the only thing you could’ve done was swap it for a less annoying one; only some of the lucky ones were able to start their own thriving business and enjoy being their own bosses. Nowadays, things have changed, but the human mentality hasn’t: we think that we just can’t do it.

Well, we can’t help you there, but if you are already brave, adamant and dedicated enough to start your dream business in 2018, we might just have a couple of useful tips for you!

Find your ‘fountain’ of motivation

First, let’s not define money as a motivator. When push comes to shove, the need for money is merely a trigger for motivation – something that will push you into trying to find a way to make things better.

The true ‘fountain’ of motivation comes from the heart; yes, it might sound cheesy, but it has been proven true, time and time again. The true essence of entrepreneurship is the desire to improve something – either the general quality of life by bringing a new product/service to the market, or an existing product/service in itself – finding a cheaper way to bring more quality to the table.

Want to earn money? Go be a stockbroker and grind, grind, grind. Want to bring a quality product into the world; a product that will help people and have you rightfully earn money for it? Think about starting a business.

Are you ready?

Sure, being your own boss looks great on paper, especially to someone who’s used to doing mindless work and picking up their salary on a regular basis, but it’s really a double-edged sword. You get to create your own schedule and run your own thing – make key decisions and serve as the foundation of the business. On the other hand, creating your own schedule is much more difficult than it sounds, not everyone is capable of making decisions under pressure, and the foundation carries a lot on its shoulders.

On the bright side, if reading this hasn’t really scared you, chances are that you are more than competent to run things – this, of course, requires experience and practice, but then again, what rewarding thing doesn’t?

Being a people person

You can’t become an entrepreneur if you aren’t a people person – it’s simply impossible. If you aren’t keen on and willing to truly and truthfully work with other people, well, then perhaps entrepreneurship isn’t really up your alley. However, you probably already knew this, and the fact that you’ve gotten to this point in this entry means that you are already somewhat of a people person.

At the very foundation of any business lies networking; or, in other words, knowing the gist of the trade: money isn’t the only currency out there, and it’s the service-for-service transactions that actually broaden and deepen the connections between businesses. Establishing and nurturing a relationship with everyone from your employees and customers to other businesspersons is the essence of entrepreneurship.

You can’t do everything by yourself

Your set of roles, as an entrepreneur, is diverse, to say the least, but you aren’t required to specialize in everything. The burden of an entrepreneur is a weighty one, however – knowing the basics of every single position and occurrence within a business is nowhere near easy. For example, unless you have a degree in law, you should outsource a lawyer, but make sure that you still know the basics of the goings-on within the legal aspects of your business.

Additionally, hiring a multidisciplinary team is a great idea – for instance, there are companies that can offer you agents, specialists and lawyers, as well as a reliable tax accountant in Sydney – find this type of a legal/financial team to help you tackle your business’s economic, legal and financial aspects simultaneously.

Celebrate

If you really are cut out for running a business, you’re going to be satisfied with all the success that you achieve, but without celebrating, the entire experience is nowhere nearly as rewarding. Don’t be afraid of celebrating every successfully completed goal – congratulate your team, but more importantly, congratulate yourself – don’t be afraid to feel proud.

Finding the true source of motivation, coming to terms with what it takes to be an entrepreneur, working on your people skills and not letting the sheer weight of responsibility weigh you down are the pillars of business success. Oh yeah, and don’t forget to celebrate success – you’ve earned it!

About the Author

Diana Smith is a full time mom of two beautiful girls interested in topics related to business and technology. In her free time she enjoys exploring new low cost advertising opportunities.

 

Ideas for Businesses You Can Launch for Cheap or Free

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More and more young entrepreneurs start a successful business without having a massive multi-million dollar budget. It’s definitely not an easy thing to do, but it’s doable, even for people who are on a tight budget. Most businesses require you to know a thing or two about the industry you’re trying to conquer, so it would be a good idea to stay in or close to something you already know how to do. On the other hand, there are plenty of ideas you can turn into a reality by devoting some time, effort, and motivation to the cause.

Start a dog walking service

This might sound like an entry-level idea, but you would be surprised by the enormous potential of this particular business. Millions of people are way too busy with their daily routines and the vast majority of them simply don’t have enough time to devote to their beloved pets. However, a great solution in the form of dog walking services has been emerging to the surface for nearly a decade or so.

If you’re an animal-loving individual with plenty of time on your hands, don’t hesitate to consider bringing this idea to life. It doesn’t require any expertize nor previous experience, but instead, it requires patience, time, and a bit of love. The earning potential is pretty good, depending on how much exposure and clients you are able to get.

Painting services

Starting a painting business is quite a serious endeavor and you should definitely develop a business plan before starting a painting company. Not only does it require a good deal of previous experience, but it also requires you to have a set of appropriate tools. Some of them are somewhat affordable, but there are some tools that can cost quite a bit. When it comes to budget-friendly solutions, there are some affordable cordless paint sprayer models on the market that could yield some good results in the right hands.

The return on investment here is quite favorable, but it may take some time. If you’re willing to enter a market that is as saturated as this particular one, make sure to offer a high-quality service or else you won’t differ much from the others. In order to get familiar with the market, you should consider hiring a small business coach.

Lawn services

This certainly isn’t the most innovative and original idea one can come up with, but that doesn’t mean it’s not profitable. Imagine the number of people who don’t have enough time to devote to their front yard. You can rest assured that there are hundreds of people in your area that simply give up on trying to make their lawn look better.

It’s safe to say that lawn maintenance is hard work that requires a lot of sweat and tears, but the end result is always worth the effort. On top of that, it’s a lucrative business because one can earn up to 40-50 dollars per hour, depending on the quality of their service. The growth potential is massive and most people who decide to pursue this particular career usually end up hiring more people within a few months.

Social Media Expert

As modern technology continues to grow, more and more businesses look for exposure on social media platforms such as Facebook, Twitter, Instagram, and etcetera. It’s one of the greatest opportunities for tech-savvy people that want to start their own business. Instead of wasting time in front of your PC, you can use it to write posts on social media platforms and promote different companies that agree to cooperate with you.

While it doesn’t take much to get into this business, it’s definitely a never-ending learning process. It means that even the well-known experts have a potential to become even better. It’s quite a dynamic environment, but it eventually pays off. Every business needs a presence on social media in order to grow and become more dominant in the industry.

Freelance writing

Freelance writing is a thing you can start doing with absolutely no money. All you need is a computer, creativity, and flawless grammar. However, one should take this particular job seriously because there are hundreds of thousands of people already doing the same thing which significantly reduces your chances of success. On the other hand, if you’re able to offer high-quality writing services, you’re guaranteed to be noticed by established companies that are in dire need of a good writer.

Article by Ian Lewis

4 Things To Know About Start-Up Funding Stages

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startup business people group working everyday job at modern officeAre you trying to collect together the cash you need for your start-up? It can seem like an almost unmanageable task when tackled incorrectly, regardless of your current position within the funding cycle.

Investment is vital to the longevity of any business and is a fundamental part of both expansion and development. Attracting investors and claiming that all-important funding should always be at the forefront of your efforts.

To assist you in finding start-up funding, we’ve brought together a list of tips to guide you and help make the most of your resources.

If you’re looking for ways to target potential investors, or are just curious as to what’s best for your business, be sure to read on and familiar yourself with the four things you should know about start-up funding.

You’ll Need to Know Your Funding Stage

Where your business sits within the funding cycle is crucial to obtaining investment. It’s something you’ll need to know!

Ask yourself some key questions as to the progress of your start-up thus far. How far along development is your product currently? Are you earning tangible profit from your services? You’ll need to be wary of your position as this will help point you towards the types of funding you should be aiming for.

Demonstrating self-awareness toward your funding stage is essential. Potential backers will be eager to see that you understand and acknowledge the boundaries of your business realistically.

Establish Why You’re Seeking Funding

Each funding stage will have different requirements, needs and ideals, and you’ll need to be familiar with these before you pitch to backers. The level of funding you’ll be asking for will have to be realistic, within your future targets and appropriate.

Demonstrate clear, solid reasons for your requests. Establish where and how the money you receive will benefit your start-up and create a strong pitch that shows off the very best of your company.

Personality and confidence are key!

Researching Target Investors is always a Good Idea

It’s always worth looking into those you’ll be pitching your start-up to.

Make sure you know the general behaviours and risk appetites of investors. They’ll differ at each stage so be sure to familiar yourself with the types of things they’ll be looking for. Being in the loop is important.

The more you know about those you’ll be asking of, the better your approach will be. You can adapt yourself to optimise the chances of success.

Types of investors will also be based upon your business milestones, financial needs and current progress reports, so be certain you’re up to date on all three. Be conscious of the types you’ll be appealing to and that you’re asking for appropriate amounts.

Getting this wrong could seriously affect your outcome.

Timing is Absolutely Essential

Observe and evaluate your company to determine which areas you’re looking to expand and focus on in the future.

Knowing where your efforts need to go, as well as what you need to engage with in order to progress to the next funding stage, will make clear the best time for you to make your pitch to potential backers.

Timing is a significant factor in determining how successful your efforts will be. If you get it right, you’ll avoid coming up short at a later stage when new investors are interested, and you’ll have a sustainable momentum of growth.

In need of some more guidance when it comes to business ventures and all things start-up? Be sure to follow Innovate UK on Twitter and subscribe to our YouTube channel for the latest news, tips and advice.

 

How to Survive Your First Year in Business (Infographic)

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The corporate world is a tough, unforgiving environment. New businesses are faced with the enormous challenge of trying to sway custom away from established, reputable companies and hold their own in a cut-throat battlefield. For many start-up owners, simply getting through the first year is an achievement in itself, even if the company’s objectives are far more ambitious.

This infographic from All Finance Tax (http://allfinancetax.com) provides an interesting and straightforward guide to negotiating the first year of entrepreneurship. Although there are constant stories of start-up businesses quickly folding for reasons such as insufficient capital, a badly-chosen location or a weak marketing plan, these are in the minority. Most start-ups will make it through at least one year, with 50% of businesses surviving for five years or more.

Business ownership is a test of character as well as financial and managerial acumen, but if you back yourself and make measured yet ambitious business decisions, there’s a very good chance you’ll make it in the tough yet rewarding world of entrepreneurship.

This infographic was created by All Finance Tax.