There are so many reasons to invest in Thailand. For starters, the country is uniquely prepared for international trade and commerce. Second, the country has a very relaxed and very welcoming atmosphere towards foreign businessmen and tourists alike.
Finally, costs here are very low compared to anywhere in the Western Hemisphere so it isn’t very expensive (relatively speaking) to start a business in the Kingdom.
Whatever your motivation is for investing in a business in Thailand, the bottom line is this: you need to do everything you can, and know everything you can in order to make your investment a success! This includes hedging yourself up against possible problems.
So how does a businessman make sure nothing goes wrong when investing in a business in Thailand?
Thai laws are there to make sure that everything is fair between foreign businessmen and local entrepreneurs. Just in case you don’t know yet, there are markets in which foreign companies are disallowed from competing. This is in the belief that your spending capabilities as a foreigner from a more economically established nation will put local providers at a disadvantage.
Another law that businessmen need to know is the fact that nominee shareholdership has just been made illegal in Thailand. This is the practice of just naming local Thais in the incorporation articles, to pass the laws that require a specific number of locals in the board membership, and not giving them any real voting powers and stock ownership at all.
The voting powers in this arrangement reside solely with the foreign owners, which is illegal. Without any knowledge of that, you might have done the same thing as well with your business. You would’ve violated the law before you even begun.
Because learning the law can take a lot from your time for managing the business, you should instead hire a legal advisor to explain to you the ins and outs of the Kingdom’s laws governing foreign investment.
Want more articles like this? Check our Blog site