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Business in Thailand - ideas, stages, advantages. What kind of business do Russians open in Thailand? Open a company in Thailand |
Business in Thailand - 5 business ideas for foreigners + description of 4 legal forms + step-by-step registration process for a foreigner + 5 tips. Increasingly, one can notice a trend that our compatriots are conquering foreign countries and opening their own businesses outside their homeland. Moreover, the geography is vast - Europe, America and, of course, Asia. And a striking example of the latter region is Thailand. Thailand is the largest country on the Indochina Peninsula, which is famous not only for its beautiful resorts and smiling residents, but also for its global export of rice, black pearl mining and developed agriculture. Business in Thailand for foreign citizens has many nuances and difficulties associated with various restrictions and features of registration of economic activities. And you will learn about all this from our article. Restrictions in Thai law on foreign investmentThe laws in the Thai kingdom have always been quite nationalistic, which is the first restriction on the activities of non-residents. But in recent years, the government has adopted a number of new reforms that have demonstrated a more welcoming attitude towards foreign investment. Now foreign citizens can open their own business, but their ownership share should be no more than 49% of the capital. For the most part, this restriction concerns those activities that residents of Thailand must engage in. In some cases, foreigners may own a larger amount of shares, but then the activity will be regulated by the Law “On the implementation of commercial activities by foreigners.” Non-residents are also required to obtain a special business license. Main features of opening and running a business by foreigners in Thailand:
Foreigners do not have the right to be owners of commercial real estate that can be used for production or office. Therefore, it is necessary to look for long-term rental options here. Business in Thailand has a number of restrictions on the conduct of some types of business by non-residents of the country:
Note: the listed types of business in Thailand can also be carried out by non-residents of the country if their share in the capital is a maximum of 49% of the shares. It is also worth noting that the Thai government is focused on foreign investors opening profitable businesses that:
5 business ideas in ThailandThe choice of a business idea in Thailand for a foreigner depends not only on economic benefits - profitability, quick payback and demand, but also on legal restrictions.Vehicle rental The amount of investment depends on your fleet. The best option is to rent motorbikes. Advantages: relatively small starting capital, quick payback and demand among tourists. But there is a risk that the renter will not return the bike, which will entail additional costs. Bar-tavern The option of opening a bar with several rooms is more profitable and reliable than opening an independent establishment. According to statistics, 90% of restaurants, cafes and bars close in the first year of operation. In implementing this idea, special attention should be paid to the staff, premises and location of the future establishment. Own import Here you need to offer Thais and tourists familiar things that will have their own “zest”. You also need to create a certain image for the product and think through the business concept. "Russian" store or restaurant Since our compatriots constantly vacation in Thailand, and many even stay there for several months a year, many manage to miss home cooking and familiar products. The beauty of such a business is that you don’t need to spend money on advertising; word of mouth will work here. In addition, products and dishes will be sold at an inflated price, so the establishment will be able to quickly pay for itself. Kindergarten This amazing idea is really in demand in the Thai kingdom. An entrepreneur who decides to implement it needs to find a suitable premises, obtain a license and hire staff. For parents who want to save money, mixed groups can be offered, and for those who are willing to pay more, it is necessary to open groups with children who speak certain languages. Organizational and legal forms of doing business in Thailand
Now let's look at each form in more detail:
Company representative office created to participate in certain areas of activity other than trading. To open it, you must submit an application and deposit a minimum capital of 3,000,000 baht. The representative office can engage in: How to open a business in Thailand for a foreigner: step-by-step processA foreigner who wants to build a business in Thailand needs to know all the nuances associated with the registration procedure.So, the first thing you should pay attention to is:
Once you have decided on the chosen direction, you can begin registration. Main stages of registering a business in Thailand
Wondering how to start a real estate business in Thailand? Then this video is for you:
First of all, you need to understand Thai society. The difference in mentality can be a significant barrier. Therefore, even when you first visit the Thai kingdom, you do not need to immediately start dealing with the issue of opening a business. Explore the Thai market. What will be relevant in Russia or another country may not “take root” among Thais. Again, mentality plays a role here. Start your business in Thailand only with those you are confident in. The Thais are quite smart people, and their main advantage over you is that they are local. They may not be called dishonest, but you may still encounter dishonest people. Business in Thailand for a foreigner it is difficult, but possible. In any case, new opportunities will open up for you in terms of developing your entrepreneurial nature, because if you can overcome all the difficulties, you will certainly achieve success. Useful article? Don't miss new ones! With a salary no less than the average in the Russian Federation, which is about 30 thousand rubles, it can appear provided that your specialty is not in and you know Thai well or at least. But since this opportunity is close to zero, foreigners (or) prefer to open their own business in Thailand or buy ready-made. A Thai employer planning to hire a foreign specialist will incur very significant financial costs associated with obtaining and for his employee. Therefore potential employers in Thailand and do not seek to hire foreigners. Types of Russian business in ThailandOur compatriots are usually engaged in the following types of business:
So what business is most popular among foreigners? Bars and cafesOpen a business in Thailand in the form of a beer bar in a good location costs up to 2 million baht. However, renting with a deposit of 100 to 200 thousand baht and monthly payments of 15-25 thousand baht to the bar owner is also possible. Maintenance costs must also be taken into account. Also, during the work, many nuances and production issues arise, which become clear after about six months. By the way, opening a business in Thailand implies... Profit in this type of business depends on turnover, i.e. number of attracted clients. To do this, the bar must become your essence: you must literally live in it, communicate with the permanent contingent around the clock, and even drink with guests. After all, many of them will come to you to discuss pressing problems with you. You should not rely on the Russians in terms of contingent. Yes, you can have a drink with them, but they won’t bring in any income. Profits can be counted on from Australians and Western farangs. Payouts and PaymentsKey payment(kei money) is the rental of premises for a business, which, as a rule, is paid in advance for a year in advance. In addition, a monthly rental amount is also paid. Recent trends are the possibility of renting without key money. In addition, a deposit is also required when renting - an option for a security deposit. If there is no violation of the terms of the rental contract, the deposit is returned. Apartment rental businessThe best property with European-quality renovation and furniture in View Talay 5 costs from 3 to 3,300 million baht. The monthly long-term rental amount is 18,000 baht, short-term - 20-23 thousand. Long-term contracts will ensure almost 100% occupancy, short-term - up to 75% in a good situation. I launched my project while in Thailand. He shared with Rusbase all the pros and cons of starting a Russian business far from European civilization - from the island of Koh Samui. How it all happenedThailand is a country of freelancers and startupers from Russia, Ukraine, Belarus, Kazakhstan, and the whole world. Often we want to be closer to the sun, sea and success. But what pitfalls does inspiration hide in the tropical Kingdom? Not long ago in 2013, when it became cold and uncomfortable in Russia, I decided to go to warmer climes. At that time I was considering several options: Spain, Portugal, Vietnam and Thailand. The choice fell on the latter option, since at that time Thailand was actively discussed online as a Mecca for freelance winter workers.
Why ThailandThailand attracted me at that time with its cheapness, and most importantly, the sea and the sun. In addition, Southeast Asia has all the necessary infrastructure for remote work. Of course, I did not go to Tai empty-handed. At that time, I already had some developments in the form of a description of the future service, outlines of the structure of the Promokodex.ru website and .
The idea of launching a startup remotely is not new. This path has long been trodden by other Russian startups. One of the very first to leave for Thailand was a service that was still unknown to anyone at that time. They are still operating from Phuket and are doing very well.
That is, you can find the artist for your project through the two palm trees on the left. This public communicates within its own circle and usually does not blend in with ordinary tourists. 5. No more routine The biggest advantage of working in Thailand is maximum concentration on your project. It is possible due to abstraction from everyday stimuli in the form of home routine. In Thailand, cleaning services are very inexpensive. There is no need to cook either, since lunch either grows on a palm tree above your head or is brought by moped to the porch of the house. It is by avoiding routine that it is possible to achieve maximum concentration on your work. 6. You will definitely have a rest In Thailand, everyone will find entertainment to suit their taste, be it a beach holiday, traveling around Asia, yoga, Thai boxing, elephant riding, snorkeling, diving or just lying under a palm tree with a book in hand. Despite the fact that all types of recreation are aimed at one-time tourists, in Thailand you can find quality entertainment and relaxation from everyday work. Everyone is against moving to Thailand1. You are here, but the world is somewhere out there The distance from either the bank will sooner or later remind you of itself. A flight home will cost a pretty penny. Issues often arise that need to be resolved in Russia and it is very difficult to resolve everything individually. For example, a bank requires some kind of piece of paper signed personally in the presence of an employee. Or the tax inspector suddenly calls you personally on some issue. 2. It's hard to be white The climate in Thailand is harsh in its own way. Not everyone can easily endure forty-degree heat or extremely high humidity. People of the Sun need to go to Tai. However, in six months even the most southern person will want a little coolness and shade. 3. Living without insurance is scary. All of Southeast Asia (with the exception of Singapore) is fraught with many health risks. Food poisoning? Easily! For locals, food poisoning is the norm. For our person, the consequences may be more unpleasant. However, the greatest risks are present on Thai roads.
On top of that, any wound heals in Thailand three times slower than in Russia. The reason for this is the humid and hot climate. The risks associated with tropical diseases (malaria, dengue fever) are also very real. Some areas of Thailand are home to scorpions and other poisonous creatures. 4. Visa problems Thailand has now tightened its visa policy towards tourists who stay in the country for a long time. Therefore, you often have to deal with paper issues. Sometimes it is enough to pay here and there, and sometimes you need to go to neighboring Cambodia for the whole day to extend your visa for 30 days. 5. You are always 4 hours early Probably the last disadvantage of launching your startup in Thailand is the time difference with Moscow. It just so happens that we won’t be able to do it without Moscow, so we have to take into account the 4-hour time difference. Sometimes this causes inconvenience. What I learned after living in ThailandAs a result, based on personal experience, I can confidently recommend Thailand as a place to implement my ideas. I was able to create a coupon service from scratch in a fairly short period of time and reach self-sufficiency within six months!
We simultaneously work from different regions of Russia, Ukraine, and Germany. All processes are built in such a way that the location of the employee does not matter at all. All we need is the Internet. Our project is one of the three largest “smart shopping” services in Russia. This is confirmed by publicly available statistics from the Similarweb service. The project has been profitable since 2014. Our team consists of seven employees. It seems to me that we can talk about the successful experience of a Russian startup. Many people think that Thailand is just waiting for unemployed Russians, but this is a mistaken opinion. Officially getting a job in this country is not so easy, and illegal work threatens with prison. But still, there will be work in Thailand. Working as a guide in ThailandMany people who want to earn money simply get a job as a guide. Many such people work in Phuket and Pattaya, but it should be noted that most of them work unofficially. After all, Thai law prohibits foreigners from conducting excursions. Such a violation of local laws, of course, risks imprisonment. Despite the prohibitions, you can find a vacancy as a guide quite easily, but by agreeing to conduct excursions you are taking a great risk. Companies that are interested in a Russian-language guide are trying to circumvent the laws. They they hire a Thai guide and assign a foreigner to him as a translator or just a tourist. That is, according to your documents, you are an ordinary tourist who talks a lot. It should be noted that even such not very bright prospects do not frighten people who want to make money. True, no one works for a long time. Photographer's work in ThailandA photographer is a person who can capture happy moments and make vacation memories brighter and more emotional. Therefore, this profession is in demand everywhere. Thailand is no exception. Many tourists from many countries around the world come to this country every year. It is clear that everyone wants to leave something as a souvenir of an unforgettable vacation. And there are no better memories than beautiful and professional family photos. In order to successfully work as a photographer and earn good money from it, you need to explore all the magical and cozy corners of Thailand, be a highly qualified specialist and be able to communicate with people of different characters. Remember that there are people who don’t like to be photographed or don’t know how; you should help such clients choose a pose, angle, background and other elements of the right photo. Wherever there is a service for tourists, they are looking for Russians to work. But not everything is so simple, because Thailand is a serious country with strict laws that have restrictions for foreigners. So, Thai law prohibits foreigners from:
Business in ThailandIf you are unable to get a job at a company, you can create one yourself. let's discuss how to open a business in Thailand and make a good profit from it. This country has great prospects for making good money. There are several business models that are most often preferred by foreigners. Just as some professions can only be performed by Thais, you can create a company and be a director in it. This is permitted by law. Next, about the areas of business that are most profitable to do in Thailand. Export of goodsA very profitable business for foreigners is manufacturing or buying goods in Thailand and exporting them to their homeland. You can open a company that will do wood carving or some other type of craft. Thailand has a lot of raw materials that are used in the processing industry. Therefore, if you are the owner of a foreign company, then in this land of smiles you can increase the value of the product in your homeland. Import of goodsThe reverse process of exporting: from other countries you can import goods into Thailand. To do this, you will need to do some research to understand what kind of product can be sold profitably on the Thai market. As practice shows, good profits can be made by opening business of importing cosmetics and medical products, as well as equipment for various security systems, educational services and nutritional supplements. Automotive accessories, military equipment, broadcast equipment, environmental technology and food processing are extremely popular. Medical tourismThis area also brings good profits. Thailand ranks first in the number of tourists who come to improve their health. Residents of developed countries want carry out expensive wellness treatments in Thailand, because in their homeland they will have to pay more for the same procedure. In the Land of the Sun, this business is promoted by the government, because thanks to it it is possible to increase the economy of the state. CookingIf you are interested in preparing a variety of dishes, then a business built on amateur work can bring good money. The Thai market constantly demands Italian pizza, bread and German sausages. But besides this, you can cook original dishes. It is better to open such a business in a place where there is large crowd of tourists- they are your potential clients. But you shouldn’t hope that the Thais themselves will be regular customers. They love their national dishes - seafood and rice dishes. As you can see, Thailand is not very welcoming to foreigners when it comes to employment. But nonetheless, if you want, you can earn good money in Thailand. Here it’s up to you to choose: work officially or illegally, be subordinate to someone or create your own business. The sunny country awaits you both as a tourist and as a potential employee. As you can see, there is work for Russians in Thailand, so you can safely hit the road. Brief background Pattaya. Koh Larn I first went to Thailand in 2011 and saw it like you see in this photo. This was the country of my dreams. In 2012 I moved to Pattaya. For quite a long time I was afraid to make a decision. Subsequently, it turned out that we impose the complexity and stress of decisions on ourselves. I constantly travel to Russia and there is no “burning bridges”, you can only force it on yourself, it is not necessary. In general, I lived well. The first two years. The exchange rate between the baht and the ruble was one to one. I didn’t have to work; I had a source of income for capital. I boldly spent 100-200 thousand rubles a month, this was the norm for a comfortable life. Then I spent a fair amount of my capital due to a couple of strategic mistakes, and decided to invest the rest in real estate in Russia, they convinced me that this was a good idea, the income was less, but more stable.
Last year this topic dragged on, I began to look for other sources of income, because there was nothing to spend. In the process, I found a good job in IT for 3 thousand dollars a month, I even managed to work remotely, but I didn’t work for long - the boss didn’t like the lack of control, they began to load me with tasks for a ton of “terribly necessary” reports, in the expectation that I would leave on my own, and then they fired me. I’m not a big supporter of working for my uncle and I wasn’t particularly upset. Beach in Thailand Having completed the formalities with the apartment, I once again took a one-way ticket from Moscow to Bangkok. It was October 2014, and this is where the story begins. I had with me 100 thousand rubles on my card, an agreement on minor work on the Internet, which I had been doing for 2 months at that time, and a rental agreement for my apartment for the equivalent of 900 dollars (I write in dollars, since at that time started ) per month. I was already accustomed to a more modest life and thought that this should be enough. How I came up with the idea of opening a business in Thailand It didn't really cross my mind. I forgot to clarify that my common-law wife is Thai. Her idea. I was going to take up Internet projects and find another remote job; the first one barely brought in 20 thousand rubles a month. During the first two weeks, the unexpected happened - my tenant’s mother became seriously ill, he moved out and asked for the deposit back. I spent the deposit on a ticket and rent in Pattaya (my wife lives in her house in the north of Thailand when I leave). I asked my friends to help me, but this did not threaten me with any money in the near future - as long as tenants are found, I will give the deposit from the first month, and it is better to save the new one so that history does not repeat itself. We parted ways with our employer after 3 weeks, and this source of income also disappeared. The dollar had already begun to grow strongly and “broke through” the 37 mark. I had to withdraw money from the card - at such a rate that, to be honest, I didn’t care. I don’t like spending my last money, it’s starting to get on my nerves. We both didn’t work and had no income, the rent was falling, this didn’t suit me, I suggested that my wife find a job first, so that I could slowly look for a good position remotely with a real salary. She didn't like this idea. It must be said that salaries in Thailand for positions without higher education are quite low (considered low at the old ruble exchange rate) compared to Russia, and labor laws are not respected. If you want, work 10 hours with one day off a week; if you don’t, there’s a line of people from the poor province behind you, get out. You can relatively easily find a job for 8-14 thousand baht per month, not higher. She offered to rent space at the market where she had previously worked for a while and sell fruit smoothies. In a month, the high season began, and one could count on good sales. I didn't care as long as things moved forward. We went to the market and agreed on a lease. Business conditions in Thailand
Jomtien Market The lease agreement is concluded directly in the name of an individual (with Thai citizenship, of course, not in my name). There were too many drink stalls; we were allowed to sell food. The wife chose sausages that her friend sold in Bangkok. To open a point in the Pattaya market we needed:
The total cost of starting a business is $1,000. It took all of 2 or three days, the longest was purchasing and modifying the bike. Then we went to Chonburi for sausages. Nominally Chonburi is the provincial capital, but Pattaya is actually larger. The sausage seller is a distributor, he transports sausages by the ton from Bangkok and delivers throughout the province. A kilogram cost him 95 baht, in Bangkok - 80 (yes, far from elite Bavarian sausages, I’ll explain why such a product now). It would seem that you can make money on such a ridiculous markup? However, he earned enough for two units in a townhouse, 2 pickup trucks for work and an SUV for the family. The Thais are very dedicated to their work and work seven days a week, putting themselves under strict conditions. This man was one of those (he opened at 5 am), and the sight of the property he acquired inspired me. Opening a market outlet in Pattaya Jomtien Night MarketSeeing that my wife understood everything, I gave her freedom of action and only helped, mainly carrying weights. In the early days, she set the price at 10 baht per piece and sold sausages for 1,500 baht. The sausages quickly ran out (one batch - 20 kilograms). I didn’t understand what we had earned, and convinced her to raise the price first to 15, then to 20 baht. Later I weighed one piece and realized that we had a loss of 10. They began to buy fewer sausages, but revenue increased. I didn't understand how people eat empty sausages and decided to add buns to make hot dogs and Bavarian burgers, like at Stardogs. The Moscow model did not work in Thailand, they managed to sell only 3-4 pieces in 3 days, the bread was thrown away. Grilled sausages and chinchilla We earned 200-500 baht per day. The apartment was rented out, but it didn’t suit me, the rate had already exceeded 40, I couldn’t live on that kind of money. It was necessary to expand. Our neighbors were selling fried insects, soups and spaghetti (wild, right?) and decided to move out. They had 2,000 baht in revenue per day, and we decided to buy out their outlet. In total, they asked for 6,000 baht for the equipment, with the condition that their daughter would stay with us for 300 baht a day. They explained to us how and how to prepare them. It was December 2014, high season had begun. More space allowed for more product to be displayed. The very need to prepare soup in order to maintain the level of revenue reminded us that my wife is a cook, and we added lunchboxes with steaks to the assortment: chicken, pork, fish. How we opened our cafe Assortment of our cafe in Pattaya In less than a month of trading, I did not see any accumulation of money and began to analyze. It turned out that the wife makes money at her point, and from the second, where the girl sits and sells bugs, we receive a loss (rent and salary exceeded the marginal profit). The girl had to be fired on New Year's Day. Apparently, karma returns, and they gave me the same gift. The tenant moved out without paying for the second month and breaking the plumbing. At the very beginning he asked for a deposit in installments, instead of a deposit he fed me promises, but I didn’t know. In the end, when I left, I got nothing. And then - a sluggish January, renovations and it was clear that there would be no money. There were 20 thousand rubles left on the card, which melted away every week with the rise in the dollar exchange rate. I decided to go all in. We closed the beetle spot, took a third tent and set up tables (we bought it second-hand with the last of our money), making it a street cafe. The assortment now includes about 25 dishes. In addition to us, there were 2 such points on the market, both of them were much larger, with serious sales. Cafe in Thailand The income was excellent - 4-6 thousand baht per day. Orders - from 40 to 60. About 30% of orders are to go, the rest sat down. In general, the business was a success, every day we took home 1-2.5 thousand “clean” and even took our first day off in 3 months. But every day the dollar to ruble exchange rate grew. People automatically kept saying: “Oh, how cheap, 60 rubles for Tom Yum!” But in fact, 60 baht was already equal to 120 rubles. In general, these tourists were already on vacation, they didn’t care. What about the next ones? How the decline in the flow of Russian tourists affected Thailand Disco car on the market The business developed successfully for exactly one month. Then people calculated how much their vacation cost them and stopped coming to Tai. We lasted through February and early March 2015 due to the quality of the cuisine. Then we had to give up tables - it became unprofitable to pay almost $30 a day for rent, water and electricity. Tom yum with chicken with coconut milk The variety of dishes depended on the volume of purchases. More is cheaper, I think it’s clear. Over the entire period, we sold about 2 thousand servings of soup, and we only had 4 customers who didn’t like my wife’s Tom Yum. Two of them were accustomed to a different taste, which they had tried somewhere, two of them did not like the fact that the shrimp were unpeeled. Well, excuse me, I just don’t allow her to peel shrimp for a miserable 60 baht - she already has constant cuts and burns, she didn’t have enough to prick her hands. The vast majority of customers said “Thank you, it’s very tasty,” dozens asked for the recipe and said that this was the best Tom Yam they had ever tried, including restaurant ones for 300 baht. Some people ate with us every day throughout their vacation. But we even had to give up soup - the ingredients cannot be stored, we need to sell at least 5-7 servings a day, and now even this is impossible.
Now we have one stall left - spaghetti Bolognese, fried potatoes, steaks and coconuts - that's the entire range that is still on sale. 300-700 baht remain “clean” per day, we work seven days a week. More precisely, one wife already works at the market itself. I rented out the apartment, but it’s already 300 dollars or 10,000 baht per month, prices have dropped significantly. We are trying to save up to rent a more accessible point or tickets to Moscow while we have to work. One day of life in Thailand in photographs The market starts at 4 pm. People used to come at one o'clock and wander around in search of food. Now sometimes nothing is sold until 6. My day starts with a trip to the local market to buy coconuts. The cheapest market in Pattaya is located near the Colosseum cabaret. We used to buy a lot of different ingredients there, now we only buy coconuts. They are brought every day from a farm near Bangkok. The business is much more stable than ours. The second destination is the Macro hypermarket. Hypermarket Macro Pattaya I usually buy fish, spaghetti, minced meat for Bolognese, chicken breasts, and potatoes. But you can also buy a shark. You can't make money on pork steaks; the meat is expensive. Chicken - 70 baht, and pork - 120. Beef is even more expensive. We count every penny to make a profit. The minced meat is made fresh right in the meat department several times a day. I return home, peel potatoes, wash dishes. We moved a long time ago from a very cheap condo with a pool for 9 thousand (with meters) to the private sector. This is literally the cheapest decent accommodation in our Pattaya area for 2015. We pay 4,500 baht per month, with meters it comes out to 6,500. All that is cheaper are barracks without windows, beds and air conditioning, sometimes with a shared toilet on the floor. It is in these that those who claim a “royal” standard of living in Thailand live at 20,000 rubles a month. When the ruble was more expensive, they still managed to eat with this money; I don’t know what they eat now and whether they are even alive. A few words about the bike: Spark is the most disgusting jalopy I have ever ridden, including the “shahid taxi” - the “killed” six Zhiguli. The handling is terrible, you'll hurt all your legs on the kickstarter until it starts. There are no complaints only about the Yamaha engine. We used to have a brand new motorcycle from the showroom, but we had to sell it at some point. What can you carry on a bike with a cart?But there is no cheaper commercial vehicle. Gasoline consumption - 100 baht per 150 km. We spent 900 baht on maintenance for 3 thousand km. Among the Thais, such carts are widespread and allow you to transport fairly large and voluminous loads; I have seen up to 9 people on such a unit. I took the coconuts to the tent. It's time to throw out the trash. It's time to take out the trash All waste from the market must be drained into this ditch. The ditch leads straight to the beach. The sea in Pattaya is very dirty, the beaches are unkempt. Not a beach resort at all. All waste flows directly into the Gulf of Thailand onto the city beachThis is how difficult it is to do business in Thailand!
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