Business in Thailand vs Bali

I am writing this article from Bangkok, the capital of Thailand. My main purpose here is to compare the conditions for starting and running a business in Thailand and Bali.

These are two of the modern world’s tourist Meccas and two of the most important relocation destinations for Russian-speaking expats.

Earlier, I had already compared the major countries in Southeast Asia in terms of business opportunities - https://bali-legal.com/en/luchshee-reshenie-dlya-otkryitiya-biznesa-en and here’s what I came up with in numbers:

Check out more details—it's quite well-researched here: https://bali-legal.com/en/luchshee-reshenie-dlya-otkryitiya-biznesa-en.

Now, I want to confirm or debunk some rumors and provide real numbers based on my personal experience in Thailand.

The Myth about Foreigners Not Owning 100% of a Business in Thailand

This MYTH (surprisingly) comes from those unwilling to make significant investments in starting a business in Thailand.

In reality, there are two main schemes:

BOI is a department in Thailand responsible for protecting the interests of foreign investors starting businesses in the kingdom..

1. Without BOI

This is the most common route for starting any business in Thailand.

Here’s what you need:

Yes, you read that right. Even in the standard scheme, you still need a Thai co-founder, even if they are just a nominal one.

The registration fee for this service in Bangkok is about 28,000–40,000 THB (approximately 1,000 USD), depending on the size of your authorized capital and the type of business.

You can:

IMPORTANT: Although these contracts offer some protection for the main investor, risks still exist—primarily, the risk of your co-founder disappearing, which can leave you stuck with an inactive company.

There are entire blocks of sealed and abandoned offices in Bangkok due to this.

The company registration process takes about 14 days, and you need to stay in Thailand throughout the process.

Not all business types are allowed to operate with foreign ownership, much like in Bali.

2. Through BOI

After registering your company, you can apply to BOI for full foreign ownership by having the local co-founder transfer their shares. If:

Then:

You receive a Business Permit from BOI, granting you 100% ownership of the company.

This is where things get even more interesting compared to Bali—you can run the business solo without needing a co-founder or commissioner.

For more details on setting up a business in Bali, read here https://bali-legal.com/en/business-bali-bez-oshibok-en.

Drawbacks of BOI:

Compared to Bali:

- Bali is cheaper, Bali is faster, Bali is easier.

THEREFORE, for businesses without a fixed location, focusing on export-import, online ventures, or consulting, the choice is obvious.

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About the Banking System in Thailand

Bangkok is a global financial hub, the city of the god Indra, and the fastest-growing city in Southeast Asia. It is home to a vast number of companies focused on exporting locally produced goods, particularly precious gems, silver, jewelry, fabrics, and clothing.

However, obtaining a bank card in Bangkok, despite it being a global financial center, isn’t as straightforward if you only have a tourist visa.

You'll need your passport (which isn't an issue) and a working permit, which can only be obtained once you've set up your business and gone through the required processes.

While getting a work permit isn’t too difficult (just opening a company), the system for transferring and withdrawing money in Thailand is currently undergoing changes and has a few key features to be aware of.

In Thailand, however, money transfers through the SWIFT system often require additional income confirmations or documents from the counterparty. However, cryptocurrency has been legalized since 2018, and a company can even get a crypto license directly from the SEC (Securities and Exchange Commission).

During my time in Thailand, I saw how difficult it was for my clients to transfer money from their personal accounts via SWIFT. Payments were often returned for unclear reasons.

Fees for withdrawing funds can reach up to 4% of the total, which is expensive and not ideal for cardholders.

On top of that, Thailand’s tax laws have changed significantly, and now, if a foreigner lives in Thailand for more than 180 days in a year, they are automatically required to pay taxes on income earned not only by their company but also on their personal accounts.

Taxes in Thailand can reach up to 30% of the amount you receive on your Thai bank card. Of course, there are always ways to “optimize,” and if you live in Bangkok, you’ll need to search for them =).

The speed of moving money and the lack of currency control (or almost none) in Bali works much better for me when running an international business.

If you need a more detailed consultation on relocation, opening, and running a business in Bali, simply CONTACT US via TELEGRAM OR WHATSAPP for quick communication.

On Thai Corruption and Deportations

Living long-term on an island where immigration services, police, and authorities periodically raid illegal businesses can really affect your nerves =)

Yes, I’m talking about Bali, of course =).

Many expats say they don’t feel fully “at home” or 100% secure. And I don’t think they ever will. I feel the same.

There’s always a need to take a break from the feeling of being watched and the “underhanded games” that go on, with their spy-plot undertones.

You can read about what scenarios people sometimes face on Bali - https://bali-legal.com/en/deportaciya-na-bali-en

and the continuation here: https://bali-legal.com/en/proverka-immigracii-en

In Thailand, the situation is somewhat similar, but with one significant difference, in my opinion:.

Here’s how it works in both places:

1 - Immigration police receive information that a certain business is being run illegally.

2 - They put that business “on the radar.” They do this to time their inspection right.

3 - The business owner thinks everything is fine, lets their guard down, and expands their business.

4 - The inspection happens 6–12 months later, and the owner gets arrested.

5 - In jail, the business owner gives up everything they’ve earned.

This 6–12 month period is needed to give the person time to make money—so there’s “something to take”.

6 - Then, deportation back to their home country.

The country is also corrupt, but its focus is primarily on those working illegally without the right permits and documents. There’s also a network of informants among expats.

So, the conclusion is this: RUNNING A LEGAL BUSINESS ON THE GROUND (CAFES, RESTAURANTS, BARS, HOTELS, CONSTRUCTION) IN THAILAND IS MENTALLY EASIER THAN IN BALI.

But what’s best for your company is up to you to decide =).

If you need a more detailed consultation on relocation, opening, and running a business in Bali, please simply CONTACT US via TELEGRAM OR WHATSAPP for quick communication.

Together, we’ll make your life on the island comfortable!