Cost analysis to set up a business in Thailand

Setting up a business is not an easy task. You have to look for all types of things when you are registering your company. Firstly, you have to choose a place in which you want to do the business. However, people nowadays are opting for Thailand to register their company. There are numerous options in Thailand for doing business. Moreover, you can have numerous benefits if you register your company in Thailand. 

However, there are certain things that you should keep in mind before setting up your company in Thailand. Things like company type, place requirement, and cost requirement are required to establish a successful organization in Thailand.

Budget estimation for doing business in Thailand

Some things are essential if you want to establish your business. Some of the things are infrastructure, land requirement, tax requirement, and cost requirement that are to be considered to start your business. Moreover, the most important thing is cost requirements. Every person is not capable of investing a considerable amount of money in setting up a business. Moreover, not every person is eligible to get a loan for starting their business. Therefore, to start a business in Thailand, one must understand the fee distribution which the government has laid.

The establishment cost can be determined through two types of fees. One is the professional fee, and the other is government fees. Let us first understand the concept of professional fees.

Professional Fee

Professional tax is the taxes that are deducted from the supplier’s annual income. The professional fee is variable and depends upon the employee’s income and status. Moreover, starting a new business involves getting an official Tax ID and VAT registration. However, if you want to avail a Tax ID or a VAT registration, you have to pay around 40,000 to 100,000 baht.

Moreover, if you want to have a foreign license and have a Thai shareholder who is having more than 50% share of your company, you have to pay around 60,000 to 100,000 baht.

Governmental Fees

A governmental fee depends upon the establishment of the company. 

  • If a company has no foreign shareholder, then the fee can be minimal as 5 baht per share; however, you are eligible for this fee if you have a minimum of 3 shareholders.
  • If you have Thai shareholders and want to have foreign shareholders, you must have a capital of at least 2M baht.
  • If you have more foreign shareholders, you must have a capital of around 3M baht. However, you can have only one work permit with a 3M capital.

We can understand that setting up a business in Thailand can be life-changing for you. You could have numerous benefits provided by the Thai government if you fulfilled all the criteria. However, the cost calculation or the capitalization must be thoroughly understood if a person wants to start their business in Thailand. However, the analysis of the taxes is done by the net amount of VAT (100,000 THB)

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