All You Need to Start a Small Business in Thailand…

Last updated on September 9th, 2013 at 07:19 am

Not too many people in the office at the time...
Not too many people in the office at the time…

Is a pulse and a measly 20THB. As you all may know by now the wifey and I opened up a small cafe. We got our lease/contract from our landlord so we made our merry way to the local Thai government business registry office. It’s a big office building but totally nondescript because it’s down a soi. Taxi drivers seem to not have a problem locating it because it’s such a well known government office.

Anyways getting our cafe registered took less than 10 minutes. And it only cost 20THB, less than a $1US. Well if you count the photo copies I had to make of the contract and my wife’s Thai ID card the cost is actually a little over $1US.

I remember about 5 years ago it cost me $200US just to register and incorporate a business. And I had to wait about a week.

Not that I was rushing at the time.

But it’s a bit amazing to me on how fast we could open up shop. Hell, we didn’t even have our legal papers the day we opened up until now. Back in the good ol’ USA that just wouldn’t fly with the authorities including Mr. Taxman.

thai business office_2

Speaking of taxes, since we’re a small business we don’t even have to pay any taxes. I’m not knocking the US. I love my country. But sometimes the rules and regulations for the little guys can be overwhelming.

I remember a good buddy of mine who opened a bakery forgot to renew his business registration. The penalty for that tiny mistake was a little over a $1000US. That’s just plain nuts. And business was a little slow at the time for him so it was a big hefty chunk of change to hand over.

So far business for us is picking up slowly. We have our up and down days.

Part of my big challenge here in Bangkok is the bakery. I’m experimenting on a lot of different recipes and learning along the way that Thai people like their desserts to be soft.

What does that mean? Well, they don’t like chewy foods especially chewy desserts. So I’m looking into recipes for soft cakes and breads. Maybe they’ll like puddings too?

I’ll put up a pic of my shop after I pick up the painting we paid a painter to paint. I also want to buy some paper mach cats. But it cost about $35US for a big one and the smaller ones cost about $10US each. They’ll look good in my shop but man paying that much for paper art is not easy.

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9 Replies to “All You Need to Start a Small Business in Thailand…”

  1. Hi, just stumbled across your article re starting a bakery/cafe with youwife.
    I have a couple of questions.
    1) did you find the equipment costs high?
    2) my wife is making Thai sweets and desert at home and wants to open a shop
    3) did you need a work permit to operate in your wifes shop
    thanks in anticipation of your response

    1. Hi John,

      Cost of equipment is not high. But if you want the high quality equipment then yes, it will be pricey. An example of high quality equipment would be one of those cake refrigerators you see in starbucks.

      There are many foreigners working (with their wives) and many of them do not have work permits for decades. That’s because it’s a small business.

      Technically as you probably know already, you will need a work permit, no matte what the instance is.

      However, if the business is so small you might just fly under the radar like everyone else.

  2. Hi,
    Thanks for taking the time to post your experience, it helps a lot. I m currently working on opening a very similar operation in Chiang Mai. I.e coffee cakes and a couple of savory option. I have been with my girlfriend for about two years. While I have a good grip on the confection and GF also has some training. My question is more about the legal aspects. Whats the name of the legal entity will she need to open to start her business and how much it costs? She would be planning on hiring one local staff too.
    I am well aware that I will not be able to work there but plan on being backstage to give the energy, creativity do a bit of quality control and oversee things in general. This has an element of danger, I don’t want to get deported, but would you say it’s possible and what’s your experience with this.
    Thanks a lot in advance,
    Regards.

    1. You’re welcome Barth and good luck and a lot of success to your cafe business. Though you don’t have to actively make coffee you can always interact with your customers verbally. Like recommend local sightseeing and some travel tips to foreign customers. No law against talking to customers =)

  3. Hi Warren

    Really an amazing experience for me after read your cafe business topic.
    I’m a coffee lover too.
    One question ; due to Italian espresso makers & bean crushers are pretty expensive, can I get some medium quality cafe machines from JJ MALL within reasonable price tags.

    Are you still in coffee shop business in Bangkok?
    If there any chance for me to have a cup of coffee together in bkk ? I really wish to know more about coffee shop business.

    Thanks again for nice posts.

    Regards
    Alam
    alam@remanbd.com

    1. Hi Alam, no currently I am not in the coffee business. I am doing other projects now. But if the opportunity comes up I’ll look into it again.

  4. Hello Warren

    Very interesting information you have provided. I have one question. When you registered your coffee shop, did you list yourself as a part owner or only your wife as the owner?

    Thank you
    John

    1. Hello Warren

      I found my answer on another one of your pages. Wife as sole owner.

      Thank you
      John

      1. John, sorry for the late reply. Yes, it’s under my wife’s name. Large percentage of foreigners with small businesses in Thailand operate this way. Thailand is not really small business friendly to foreigners.

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