World Bank Group’s 2020 report ranks Thailand as the 21st easiest country to do business out of 190 nations, which is an astounding improvement compared to the previous year, where it is on the 26th spot. The country has a fast-growing economy supported by an expanding middle class, increasing demand for consumer merchandise, and a growing startup community.
The country has steady economic growth, a strong export market, and a lively domestic consumer market. Nevertheless, while Thailand is considered the second-largest economy in the Southeast Asia region, providing strong prospects for investors across various industries, setting up a business in the country is not without drawbacks. Here are the perks and disadvantages of establishing a business in Thailand.
Advantages of starting a business in Thailand
Situated between China and India, Thailand offers more than just a strategic entry point for the thriving Asian market. The following are the pros of starting a business in the country.
Thailand is an excellent place for startups. The country is crowded with startups and is considered a haven for numerous entrepreneurs. The latest experiments and innovations are progressing quickly, along with tech giants, business magnets, and trade masters.
Promote a welcoming environment for entrepreneurs
The country has been among the list of most preferable countries in the Southeast Asia region, particularly for ex-pats who which to live and set up their own business. The nation is endowed with various things to offer for both local and ex-pat entrepreneurs. Also, considering the country’s weather and infrastructure, which provides a welcoming environment to everyone who wishes to conduct business in the country, foreign investors would fit well. Besides, regardless of whether an ex-pat is visiting the country for business or leisure purposes, the Thai government does not impose severe restrictions.
Provides affordable cost of living
Thailand provides an economic way of living. Entrepreneurs and investors will not experience difficulty expanding their network of target audiences since the country offers an affordable standard of living, making it an attractive location for locals and tourists. This benefit covers daily shopping, hotels, and other social facilities.
Has a thriving tourism sector
The country has a thriving tourism industry. Hence, entrepreneurs can open a business that caters to the needs of a large population of tourists. Thailand is known to be one of the favorite tourist destinations for Westerners.
Educated workforce availability
Entrepreneurs do not have to worry about looking for an educated workforce once they set up a company in Thailand since the country has a skilled and competent pool of employees. The workforce in the country has academic advantages and is capable of using English with accuracy and fluency.
Disadvantages of setting up a company in Thailand
Here are the disadvantages entrepreneurs may experience when establishing a business in Thailand:
High tax rate
Corporate income tax in the country is fairly high, which is about thirty percent. This is the reason why corporate tax is rated as one of the highest tax rates in Thailand. Therefore, entrepreneurs who plan to set up a business in the country should be aware of this drawback and prepare their budget accordingly.
Complex Governmental legal procedures
The country has a rather complicated governmental junction and interference. To register a Thai company, entrepreneurs would have to go through arduous registration steps, which can be difficult for foreign investors. One effective way to prevent this onerous ordeal is by hiring a professional business consulting or company registration agency in Thailand.
Issues with Construction permits
Dealing with construction permits can be challenging. Permit completion may take more than one hundred days, which can be daunting to entrepreneurs who value time.
High Overtime pay for employees
The country has a policy of eight-hour-a-day working hours policy. However, if the employees have to extend their working hours, business owners have to pay the workers three times the normal salary rate as overtime pay.
Getting help from Professional company Registration in Thailand
Entrepreneurs and investors should consult with a reputable company registration services agency for an easier and legally compliant experience. When choosing a Thailand company registration services provider, consider factors like the company’s reputation, credibility, area of expertise, services offered, and service rates.