Thailand is often seen as an interesting destination for investors because of its perceived friendliness towards foreigners. While it is true to a certain degree, doing business in Thailand is a bit more complicated. It would certainly be close to impossible to start a Thai business without expert help, and if you try, you might end up regretting your experience. There are also some very important cultural elements you need to take into consideration before going. Let’s take a look at some of the things you should know before trading in Thailand.
One of the first things you’ll have to deal with as a foreign investor is the fact that foreign individuals cannot own land in Thailand. Either you will need to get the land through a leasehold agreement or set up a Thai company for holdings.
If you manage to get land, you will then have to deal with a maze of procedures before you can actually build on it. It can take more than 6 months to go through all the procedures required. The local Metropolitan Authority will need to approve every permit and inspection before a project can go through.
The local government also has restrictions on which type of business foreigners can invest in in the country. For instance, foreigners aren’t allowed to be in the media or any activity that relates to culture or art. Foreigners are also not allowed to participate in agriculture or land trading.
Another thing that makes business tough in Thailand is recruitment. Unemployment is very low in the country, which makes it tough to acquire top talent. This is why you will need to consider working with Thailand PEO like New Horizons. They will be able to recruit talent not only in the country but in other countries as well. They understand employment laws in the country and will ensure that you don’t have to deal with tax or employment issues. We also suggest you check their page at https://nhglobalpartners.com/thailand/payroll-peo-in-thailand/. There you can learn more about the employment laws and regulations in the country.
It’s also essential that you understand business and general cultural differences if you don’t want to end up making potentially costly mistakes. Understanding the concept of “face” is especially important. Impeccable manners in business are paramount here and publicly criticizing someone’s flaws, even jokingly, can cause someone to lose face, which could lead to an irreconcilable rift between the two of you. Also know that business here is much more personal than back home and potential business associates will want to know the real you before they deal with you, so you can expect deals to take a little more time as well.
These are all essential things you’ll need to know before you think about setting up shop in Thailand. Make sure that you keep those in mind and don’t be afraid to ask for help if you need any clarifications.