Thailand is one of the fastest-growing economies in Southeast Asia being the second-largest business to consumer e-commerce market in the region after Indonesia (Economic Research, J.P. Morgan Chase Bank).
Thanks to its strategic location, stable economy, business-friendly environment and cost-effective labor, Thailand offers foreign investors a lot of benefits to make it one of the region’s most attractive to establish a business and make important connections (read our article).
Thailand has been a cash-driven society for many years. But over the past 8 years the payment systems landscape has changed massively and presented consumers with a number of alternative ways to pay for goods and services.
According to the Law on Foreign Trade in Thailand, certain types of activities are reserved only for Thai citizens. As a result, foreign entities or firms who wish to do business in Thailand in one of the prohibited classes of business, have to obtain a foreign business license. “The Foreign Business Act (FBA), B.E. 2542 (1999) is enacted to govern business operations and activities involving foreign nationals and entities”.
The Thai government has approved measures to encourage investment in special economic zones (SEZs). The purposes for developing the SEZs include the acceleration of border trade, increasing border security, promoting the greater distribution of income, and enhancing Thailand’s competitiveness in the ASEAN Economic Community.
In 2021, Thailand is the world’s 53rd-largest country by area, 20th-largest by population, and the 28th-largest in the world by economic size. With a newly industrialized emerging market economy, international investors know the country for its robust growth rates that are being driven by a rapidly expanding population and growing exports around the world.
If you would like to change the address of your company in Thailand, there is a formalism to respect and several formalities to accomplish. It will depend on the change within the province or to another province.
With the Covid-19 pandemic, the world has changed. Long term travels and digital nomadism expanded a lot. Many people or worked looked for a new way of living and working. In the Post Covid-19 pandemic world, Thailand offers one of the best values for Digital nomads, and has many assets to attract workers from all over the work : dream locations, excellent infrastructure quality, amazing internet speed, and great prices for the daily life.
Bangkok is the most popular city in Asia for digital nomads and ranks fourth globally thanks to affordable internet and living costs, according to a study by Resume.io, a Netherlands-based online resume maker.
The Thai capital’s ranking shows it is “a firm favourite for a post-pandemic influx of nomadic workers”, Resume.io indicated in a survey in April 2021.
Gorioux Siam can help you to relocate, and for all the administrative process. But before, is is an overview of the advantages of Thailand, for a Digital Nomad
The quality of infrastructures and Internet
The reliability of the Internet connection can make or break a digital nomad’s work life. A digital nomad will need not only a fast Internet connection, but a stable one that does not frequently disconnect him or her from the Web.
Thailand offers one of the best qualities for the speed of the connection, the price, and it’s availability. Even small islands have fiber. And you can find 4G or 5G almost everywhere. A huge asset.
Besides, moving from one place to another is easy, convenient and cheap. The transport infrastructures are modern, and reasonably priced, which will make your daily life a lot easier.
Many Beautiful Cities to Consider
There is a place for every ambiance in Thailand. Whether you like the fast paced life of capital cities, or the quiet by idyllic lifestyle of the suburbs, or a quiet island, you will find any kind of location in Thailand.
The variety of Thailand’s locations, and landscapes allows you to regularly change your environnement, and choose a place that matches 100% your tases.
The Cost of Living in Thailand is very reasonable.
Despite being one of the most developed countries in the Southeast Asian region, Thailand’s cost of living is relatively low. If you’re from the Western countries, you’ll definitely appreciate the difference in living expenses between Thailand’s cities and the cities of Europe, the United Kingdom and the United States.
On average, you can expect to spend around 60% less per day than what you would possibly spend in any of the Western cities you’d have visited before. The food is diverse and cheap, transportation too, renting costs also. To say it briefly : you will be able to do and enjoy a lot more things with the same budget you used to have in your home country!
2. The best locations for a digital nomad in Thailand
Bangkok : a city for digital nomads
Big, traffic-filled, and bursting with fun, Bangkok, the never sleeping city, is home to more than 8.2 million people. Recently, it’s sort of trumped Chiang Mai as the nomad hub of the nation. That’s largely thanks to more availability in city condos, and up-coming neighborhoods like Ekkamai and Thong Lor.
Upsides to nomad life in Bangkok: Super-fast internet, unlimited cafes to check out, and an abundance of luxury condominiums.
Chiang Mai : the real capital for digital nomads
Chiang Mai is hallowed ground in the world of the digital nomad. Some say this is where it all began; the movement of working and earning online. True or not, the truth is that Chiang Mai is very much a love it or hate it place. The old center is gorgeous for sure – think timber Lanna homes and gold-trimmed Buddhist stupas. But the bazaars and streets outside of that have a distinct air of seediness – think go-go bars and gaudy Chinese casinos.
Upsides to a nomad life in Chiang Mai: It’s easy to meet other nomads, lots of accommodation choices, a good foodie scene.
Koh Phangan : the new hotspot
Sun, sand, sea, and just a lacing of beach parties – those are what make Koh Phangan a top choice for digital nomads in Thailand. This small island has a really special spirit, and is maybe the fastest growing destination for digital nomads in Thailand today. That’s largely down to its chilled beaches, beach towns, and relaxed vibe.
Many coworking spaces and dedicated events we created recently. A huge yoga/vegan community also lives there, and offers many options for the daily life for digital nomads.
Upsides to a nomad life in Koh Phangan: Beaches, laid-back vibes, the sunsets!
Pai : the nature choice
Pai is located in the mountains in North Thailand. It’s a former hippy paradise, few hours Chiang Mai. The place is quite isolated, but there is many reasons why many choosed it as a choice to relocate
New Age bars meet coffee roasteries and health-food cafés on the main street, which transforms into an excellent night bazaar come 6pm. Temperatures are a little lower in these hills, which means cooler evenings and less sweating while you work. Oh, and the surrounding region touts hot springs, waterfalls, and mountain trekking for weekends away from the laptop.
Loads of seating, tasty cakes, and good WiFi makes this café a top spot to get stuff done.
If you feel more like a countryside spirit, Pai may be the right pick for you
Upsides to a nomad life in Koh Phangan: Nature, fresh air, quietness.
3. How to relocate there
Unfortunately, there is no dedicated visa in Thailand for Digital nomads. This situation should be improved in the future and there are talks about it within the government.
Despite that, there are huge communities of Digital Nomads in Thailand. There are many solutions to secure a long term and regular stay on the island. GORIOUX SIAM is here to help you and find the right solution for you. Contact us for a free consultation : info-siam@gorioux.com
Thailand is the second-largest economy in Southeast Asia after Indonesia, and recognized by the World Bank as “one of the great development success stories” in social and development indicators.
Thinking of starting a business in Thailand, but not sure where to start? GORIOUX SIAM has got you covered. With the right guide and infos, it can be a lucrative and enjoyable process. There’s an abundance of opportunity in the industrial and service sectors and in import and export in general.
You can set up your business in a number of ways. If you have an international business, you may wish to set up a Thai branch office, Thai representative office or Thai regional office to take advantage of local business opportunities and possible tax advantages.
There are several ways for foreigners to set up a company in Thailand, the most popular being the Thai limited company, which is likely to be your choice too, since it gives you the advantages of being able to operate in a category that is normally reserved for Thais, requires lower registered capital, and gives you the option to buy land.
Thai laws allow four types to suit your goal.. The types are:
The most popular choice among foreign investors. Shareholders can own only a limited amount of unpaid shares. Thai laws require them to divide their capital into shares. At least three promoters / shareholders must register the company. It must include director(s), an auditor. Every promoter will receive at least one share. The first payment of the shares cannot be less than 25% of the nominal amount.
Foreign investors may be drawn to this type of incorporation, but the laws of Thailand limit their ownership to 49%. Fifty-one percent goes to the nationals. The company directors may apply for work permits to foreign employees.
Foreign entrepreneurs who want full ownership of their business can realize this by being part of the Thailand Board of Investment. This Board promotes select foreign companies, which assist with the grant of visas and work permits. These companies are also exempt from corporate taxes. But the Board is guided by strict criteria in choosing which foreign enterprises to promote.
Foreign companies must apply for BOI promotion. If you are thinking of applying, be aware that it will take one to two months of going back and forth to the BOI for the lengthy process. When you are fortunate to be selected, you will be required to submit a regular status report to the Board in order to retain your status. It will also be to your benefit to secure the help of a corporate lawyer or an accounting firm for the purpose.
This type is owned and registered by and in the name of a single individual. He or she functions also as the operator. A foreigner may find difficulty incorporating this type if his business does not qualify.
The Thai Civil and Commercial Code provides for these three types of partnership:
Unregistered Ordinary Partnership – The partners share equal obligations and liabilities for any unfavorable eventuality. Furthermore, this type does not possess legal status as yet.
Registered Ordinary Partnership – This type must be registered with the appropriate authority. It possesses a legal status and legal rights, responsibilities and liabilities independent of its partners.
Limited Partnership – Two types of partners come under this subtype, namely, unlimited liability partner and limited liability partner. The unlimited liability partner has full and indefinite accountability regardless of the amount of his partners’ contributions. In comparison, the limited liability partnership’s accountability is fixed at the amount of his partners’ contributions.
Registering partnerships may be easier than registering other company structures, but these three types of partnership cannot apply for work permits. Neither they can use the company name in opening bank accounts.
GORIOUX SIAM is happy to help us, you can contact us for more informations and a personalized recommendation.
This may be the hardest step, as you must deal with the legal requirements and situations involved in putting up your business. You need patience and organization. We, at GORIOUX SIAM, can also help you for a hassle free experience.
You should first book your company name to make sure that it has no duplicate in Thailand. Prepare all registration documents, which include a list of the names of shareholders, minutes of your meetings, and proof of payment of share capital. When all done, you can register your company at DBD according to its procedure.
The forms you have to fill up are in the Thai language, so it is an advantage if you can read and write in Thai. Otherwise, you may seek the help of a Thai lawyer or a suitable professional like us.
You will then need to register for VAT and obtain licenses applicable to your business line.
These licenses depend on your company type and size. Applying for VAT is required when your company earns more than 1.8 million baht as annual revenue. You need to apply for it at your nearest Revenue Department. (Discuss your VAT situation with professional, as it might be better to register right away).
Then, you have to look for an Appropriate Office Space. You may choose between a serviced office space and a traditional office space. A service office space may be better if you wish to do away with the cumbersome details of setting up your own office space.
Obtaining Visas and Work Permits is the next step of the process. This is another troublesome task in the process of starting a foreign business and hiring foreign employees. Again, it is an advantage to hire or manage with a business specialist like us in this field to make things right and easy for you and your business.
The last step, to complete your business registration process, is to open your Company Bank Account. This can be done when your company has been registered. Choose the bank that responds to your needs and preferences. You may need someone or your accounting firm who can recommend a suitable bank and prepare the legal documents and forms to perform this task.
Eventually, you’re done ! The whole process takes approximately one to two months.
To properly run your business, the next step would be to follow thai rules and regulations and to pay your taxes !
Here is an overview :
According to the Revenue Department, companies are required to pay Corporate Income Tax (CIT) and must file their tax returns (Form CIT 50) within 150 days from the closing date of their accounting periods. There are several types of deductible expenses. The CIT in Thailand is 20% on net profit, and may vary depending on the type of taxpayer.
CIT is not the only cost you will have : VAT, Witholding Tax, Social security and health insurance are costs that you have to carefully calculate when running your business.
GORIOUX SIAM can handle the whole process for you, in compliance with the legal requirements. We’ll make sure that you’re in full ownership and control of your business, and we can complete the process in a a short period of time, so that you’re ready to start making money fast.
We are available anytime to answer your questions !
Contact us now: + (66) 2-258-2638 / info-siam@gorioux.com
A common transaction in a company is lending and borrowing of funds from the company’s shareholder or director. The objective is mainly the development of the company through less restrictive and cheaper cash contributions.
As your cash is unstable, especially at the beginning of the company, the shareholders and/or directors have different possibilities to ensure financing of the company or withdraw funds from the company.
These financings can be productive of interests.
Only shareholders or directors can have a Receivable/Payable account in the company.
To avoid any problem in the future, it is preferable to write an agreement between the company and the shareholders or directors to specify the terms, especially for the loan from the company (interest rate or not, refund…).
Gorioux Siam can help you to choose the best financing, or draft your contracts.
The operation of a shareholder / Director account is very simple because it does not require any particular formalism, unlike changes in social capital.
The shareholder / director account can be:
Business expenses paid by the owner are the most common types of transactions between a business and a shareholder / director, especially for small businesses. The owner may be out doing personal errands and picking up a few things for the business or may want to use a personal credit card to buy business supplies to get credit card miles. The company owes the owner for any business expenses paid personally. The original transaction and the repayment should be clearly accounted for so that it does not appear as if the company is paying the owner a salary.
The second way is when the owner makes a loan to the business to cover temporary cash shortages, the transaction is booked in a shareholder account. In this case, the owner takes funds from a personal account and deposits them into a company business account.
Depending on the nature of the company and/or shareholder, the shareholders or directors may have the right and ability to borrow funds from the company. For example, with small companies that may have a few shareholders that are business partners or family members who contributed start-up capital.
An owner of a private company may remove cash from the business for personal use and may either take it as a distribution or a loan:
For a company with more than one shareholder, the borrower may need to obtain permission from the other shareholders before taking a loan.
Advances on shareholder accounts are an alternative to cash contributions in the capital of the company.
In practice you have 3 types of funding:
The advantage of this type of arrangement is that the contribution to the shareholder / director account, unlike the sums paid in capital, can be refunded immediately or at the end of a blocking time.
The second advantage is that instead of making a distribution of dividends to share the profit of the company, you can choose first to refund the shareholder’s accounts because there is no tax on the refund (but you have to pay 10% of tax on dividends).
The third advantage is that you do not have any strict schedule for the refund unlike with the bank loan.
The last advantage is that it might produce interests.
Shareholder’s account contributions do not offer the same guarantees as capital contributions for third parties of the company, because of the possibility of being able to be refunded when the company has sufficient funds.
When the company has profit each year and distributes dividends to shareholders, those who have mainly contributed their funds to the shareholder account will only receive funds according to the percentage of capital.
Do not hesitate to contact Gorioux Siam to find the best way for your specific case in respect of the legality and to prevent any litigation in the future.
Contact us now: 
02-258-2638 
info-siam@gorioux.com
Do you own a business in Thailand? Do you have to manage multiple staff members? If both answers are yes, payroll is probably an arduous and tedious task for you.
