People from across the world are drawn to Thailand and islands like Phuket for their tropical temperatures and way of life. However, those who are wanting to make a permanent move to the country to start a business need to be aware of the culture and the challenges you can face. Here are a few tips on how to get started.
Calculating the Costs
Before you begin the process of starting a business in Phuket, you need to be aware of the costs involved. Adhering to the legal requirements of Thailand is incredibly expensive. You must remember that if things go wrong, you will straight away be at a disadvantage when disputing with Thai nationals, especially if the dispute is regarding the ownership of land or property. To see you through the early years and the startup process, you will need to have enough capital, however, bank loans can be difficult for foreigners to obtain.
Conducting thorough research into your market is essential. While this may sound obvious, you will be surprised how many people go headfirst into a business without thinking about the consequences. Make sure to analyze your competition so you can have an idea of how they’re performing. Also, investigate companies who are based nearby to see what they are offering and whether you can do something different. Be realistic when it comes to making assessments, otherwise, you may find yourself in financial difficulty.
Where to Stay
To make a business work in Phuket, you will need somewhere to stay permanently. Thankfully, Phuket has a wide range of accommodation available, whether you choose a condo, villa, or apartment. Companies like Laguna Property offer a variety of villas and townhomes, so if you are looking for 3 bedroom townhomes Phuket, you have come to the right place. What’s more, the homes they provide include a gated environment and 24-hour security.
It’s essential that you are aware of foreign ownership restrictions before your business venture can happen. The 1999 Foreign Business Act was created to help investors and foreign entrepreneurs know how to conduct business in Thailand. If you want to control a company, you will be the minority shareholder with an up to 49% stake in the business, with Thai nationals owning the other 51%.
Respect Your Host Country
Starting a business in a new country can feel initially overwhelming. As a foreigner, you will need to understand Thai business etiquette as well as putting the work in to build genuine respect and relationships with the Thai community. Make sure to abide by Thailand’s laws and regulations, as well as possessing a work permit to legally work there. You will also need to register for VAT as well as paying taxes.
If you are serious about starting a business in Phuket, it’s essential that you take all the factors listed into account. There are various other factors that you should look into as well, including finding a good lawyer, having a unique business proposition and most importantly, having a well-detailed business plan in case anything goes wrong.