Reliance Consulting Divulges the Top 5 Challenges of Doing Business in Thailand

HUAY KWANG, Thailand - June 23, 2020 - PRLog -- One of the major challenges of setting up a business in Thailand is completing the company registration process. "Starting a business in Thailand takes about an average of one month to complete, with four processes to navigate," stated Mr. Hans Teo Han Siang, the director of Reliance Consulting.

"Startups need to register the name of their company, deposit funds into a trustworthy local bank, and fulfill several steps needed to register a Thai company as a legal entity. They may also choose to get a corporate seal," added Mr. Hans.

Language and cultural barriers are also significant hurdles entrepreneurs need to overcome in the country. "Language barrier is always a challenge no matter which country you go to. But since Thailand is well-known for being a foreign-friendly nation, entrepreneurs will likely feel like being at home," said Mr. Hans.

He further added, "Having a professional interpreter or translator by the business owners' side would be great to guide them through the country's business regulations and save them from unnecessary language issues."

Another challenge most business owners are facing when setting up a company in Thailand is securing sufficient capital. "Having a profitable business idea and the eagerness to pursue it is not enough if the entrepreneurs do not have sufficient finance to realize it. They should seek guidance from a business advisor and obtain a rough quote. They need to learn how to manage their finances appropriately and, if possible, look for a potential investor," advised Mr. Hans.

Business owners also need to deal with a construction permit if they intend to engage in construction-related efforts, including erecting a new building, modifying or adding to an existing building, and changing the building's usage. After the construction is completed, they may have to obtain an occupancy permit.

Moreover, abiding by Thailand's business rules and regulations can be challenging, especially for foreign entrepreneurs. "Although Thailand has a business-friendly environment and welcomes foreign investment, foreign investors need to familiarize themselves with the Foreign Business Act or FBA. This law controls the extent of non-Thai participation in some business operations, such as food, retail, and distribution services," explained Mr. Hans.

"To overcome such restrictions, foreign investors in the industry should consider alternative business structure and partnerships, such as working through a local distributor," advised Mr. Hans.

Reliance Consulting is a professional company registration https://www.relianceconsulting.co.th/company-registration/ service provider in Thailand, offering both Thai and English all-inclusive business solutions. Apart from company registration, the company offers accounting outsourcing services, payroll outsourcing service, audit and assurance services, and corporate secretarial services.