If you’ve ever contemplated starting a business in Thailand, you should first learn about the local regulations that regulate ownership and the several sorts of investments that are open to foreigners. While foreign investment is generally encouraged, there are tight rules that govern what you can hold and how you must organize your interest.
In this article, we’ll go over the several types of investments that foreigners can make lawfully in Thailand.
To begin, if you have a fantastic product or service, you could use the franchising and licensing strategy to grow your market to Thailand. You will be able to collect cash from Thailand and maintain control over your franchisee or licensee. Franchising and licensing might help you enter into a profitable industry.
When you license your product or service, for example, you may expand its visibility while also allowing your licensee to sell a product without having to worry about designing and manufacturing it. Licensing and franchising can let you break into a Thai market that you otherwise wouldn’t have been able to access.
Second, you enter the Thai market through a commercial agreement in which one or more Thai partners, either individuals or legal entities, agree to pool resources to complete a certain assignment. This task could be a new project or something else entirely.
In most cases, the joint venture will be established as a separate legal entity. If the Thai party has the majority of the shares, the firm will be a “Thai” entity with all of the rights of a Thai person, including the right to own land.
Each partner in a joint venture (JV) is accountable for the earnings, losses, and expenditures associated with it. The venture, on the other hand, is a separate entity from the participants’ other business interests.
Third, if you don’t have a Thai partner and want to invest in Thailand as a whole foreign entity, Thailand’s law allows you to do so under certain conditions. For example, some businesses, such as some bus companies, do not allow foreigners to operate in Thailand.
Finally, you can take one of these unique ways.
- apply for a BOI
- Establish a business in a specific location or industrial estate; or
- Operate a business within the terms of an international agreement, such as the Amity Treaty between the United States and Thailand.
In any case, foreigners are permitted to operate some business categories without a license. Before making any investment decision, it is unavoidably necessary to first study Thai law.
To conclusion, we would like to point out that anyone wishing to grow their existing business in their home country into Asia, as well as those wishing to start a whole new sort of business in Thailand, will find lots of good business possibilities in Thailand.
Krirkrit & Associates Lawyers is the legal specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property transactions and developments. The corporate and investment laws and Thailand’s regulatory framework are the main focus of the investment law firm.
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