The Nation (23 October 2007)
A World Bank survey shows that an investor generally needs 33 days to start a business in Thailand, compared with two in Australia, three in Canada, four in Belgium and five in Singapore.
However, at the other end of the scale, starting up a business requires 141 days in Venezuela, 152 days in Brazil and 694 days - nearly two years - in Suriname.
This measure is, of course, simply the formal end of what is a much longer process, which may begin with market surveys and involve everything from considering joint ventures to hiring an office or shop and giving it a coat of paint.
To help foreigners chart a course through the legal and financial minefields in the process of starting up in Thailand is a new "how to" book entitled "How to Establish a Successful Business in Thailand". Author Philip Wylie said the book was for anyone - including Thais - who is considering investing in Thailand or starting a business here. "It is intended to serve every type of business person, including overseers, investors, managers, partners in a joint venture or company directors," he says.
Much of the 258-page book concerns legal procedures that potential investors must follow and general information they must know to make a success of a new venture. For instance, how and where they can register a company and the fact that foreigners cannot own land in Thailand but can lease it for as long as 30 years.
Most of the advice is in the form of tips for people considering starting a business from scratch or those buying an existing business or operating a franchised business. It is not for multinational companies, which can be expected to have their own professional advisers.
In a way, it is a compilation of facts that are rarely found in printed form. It is based on a survey of successful business people, lists the most common pitfalls and explains how to avoid them.
Foreigners are advised to hire a broker if they are about to buy an existing business from its original owner. This will help them evaluate the business and provide a simple exit if it proves to be unfavourable. However, they are warned that brokers usually charge high prices.
There are items of commonplace concern, like how to appoint a Thai partner.
"The personal qualities of your Thai partner are much more important than academic qualifications, experience or management skills, all of which can be easily acquired or learned. Don't forget that your partner also needs to advise you on matters of Thai culture and customs. At the same time you may have to impart your own business knowledge in a way that does not appear condescending."
Among other things, investors are advised to focus largely on employees.
"Hiring Thai workers is much easier than firing them. Many businesses develop a family atmosphere among the staff, so that any conflict usually affects office morale. In many businesses, inadequate employees survive through the support of their more competent colleagues."
Included in the book are important websites for more information and telephone numbers of key state agencies. Importantly, the author lists locations that have proved the most popular among expatriates. Where else but Phuket, Pattaya and Chiang Mai?
No comments:
Post a Comment