Successful Investment in Thailand – Sanet One-Stop Service

10 Steps to a Successful Investment in Thailand

Step 1: Feasibility Analysis – Thailand in Comparison

Choosing the right country for investment is rarely straightforward. In many cases, multiple destinations compete for attention, each with its own opportunities and risks. A comparative feasibility study can therefore be a decisive first step in making an informed decision.

Sanet provides such studies with in-depth expertise, evaluating Thailand alongside alternative locations. The analysis covers a wide range of criteria that determine long-term success, including:

• Key industries and macroeconomic indicators

• The legal system and political conditions

• Investment protection and land ownership regulations

• Availability of suppliers and potential sales channels

• Structure of the labor market and prevailing labor costs
  ... and up to 32 other criteria that influence the success of an investment

Step 2: Project Preparation and Risk Management

Good preparation is more valuable than the best negotiation. Once you have decided to expand your production to Thailand, the most important preparatory measures include:

• Establishing the project team, defining roles, responsibilities, reporting structures, and the project budget

• Aligning on the project’s purpose and setting clear, measurable goals

• Defining milestones and potential exit points

• Maintaining transparent communication with stakeholders such as employees, banks, and suppliers

• Selecting an experienced consultant and preparing for cultural differences in the target country
  ... further details on project management, see on this article.

Step 3: Company Formation in Thailand – Legal Form and Structure

Company formation and structure are crucial for long-term success and are often cannot be changed retrospectively. Sanet's German lawyers at Sanet Legal & Accountancy in Bangkok guide investors through this process, addressing key considerations such as:

• Selection of legal form, shareholders and shareholder agreements, the appointment of (local) directors.

• Signatory powers, capital contributions in line with legal requirements, tax registration, and bank account setup.

• Necessary participation of affiliated companies.

• Name and trademark protection.

• Appropriate capital-to-investment ratios to secure available subsidies
  ... and many details that require the entrepreneurial thinking of a German lawyer in Bangkok

Step 4: Government Subsidies in Thailand: Securing BOI Advantages

Thailand provides attractive incentives to foreign investors, including up to 13 years of corporate tax exemptions or reductions and duty-free imports of components. Sanet’s legal experts organize and manage the entire process, ensuring all documents meet the requirements of the Board of Investment (BOI). The approval of subsidies depends largely on:

• Definition of the subsidy category during preliminary discussions between Sanet lawyers and the BOI

• The chosen investment location and timing of the investment

• A detailed and compliant business plan with specified parameters

• Consistent communication with the responsible BOI officer

  ... Sanet ensures that special subsidies for certain activities are not overlooked.

Step 5: Site Selection in Thailand – Evaluating up to 80 Criteria

Selecting the right location is a key success factor and part of risk management. Over 80 criteria must be taken into account. The location search and location evaluation by Sanet will help you make the right decision. Key considerations include:

• Decision between constructing or renting production facilities (“buy or lease” assessment)

• Choosing between an industrial park or a greenfield site

• Availability and quality of infrastructure (energy security, water and sewage systems, maintenance, administrative costs, and connectivity to ports and airports)

• Assessment of available plots (layout, prior use, soil stability, flood protection, access roads, and permitted exits)

• Surrounding environment (proximity to suppliers and customers, hospitals, expatriate infrastructure, schools, and recreational value)

  ... and a total of 80 criteria that determine construction and operating costs and are explained in more detail by Sanet here.

Step 6: Construction Planning and Tendering – Avoiding Cost Traps

Construction planning and building materials are subject to strict regulations in Thailand. International construction companies often award construction contracts to local subcontractors, resulting in duplicated profit margins. With Sanet’s guidance, you can avoid these hidden costs and secure reliable execution. Sanet Project Management supports investors by:

• Pre-selection of local general contractors of Western standard

• Supporting the planning phase, highlighting potential “pain points” early

• Managing the tender process: drafting tender conditions, responding to queries, monitoring deadlines, and ensuring compliance with bidding rules

• Organizing tenders for non-construction facilities

• Arranging an independent construction project manager

  … all steps are carried out in close cooperation with the investor to ensure cost efficiency and quality standards.

Step 7: Contract Negotiations

When negotiating construction or land purchase agreements, industrial parks and builders often push “standard contracts” designed to protect their own interests. Sanet’s lawyers, specialized in foreign investment in Thailand, ensure your rights are safeguarded by securing:

• Withdrawal rights from land purchase agreements under defined conditions

• Assurance of essential land characteristics

• Payment schedules tied to verified construction progress

• Penalties for delays and bank guarantees to protect your investment

• Proof of CAR and EAR insurance coverage for construction projects
  ... Sanet thinks of much more than your project manager for your investment in Thailand

Step 8: Personnel and HR Strategy – Sanet Manpower at Your Side

Recruiting and preparing staff must begin well before production starts. Ideally, your team should be ready to operate as soon as construction is completed. Sanet supports your investment with Sanet Manpower, the recruitment agency in Thailand that is particularly valued by international companies, including:

• Searching for and renting a temporary office near the future production site

• Recruiting key leadership roles such as general manager, office manager, production or operations manager

• Searching for an HR manager who acts as a "cultural ambassador" between Western management and Thai employees in day-to-day business.

• Providing intercultural training for expatriates from the parent company
  ... and provides your project manager with their own office in the Sanet Business Unit until then.

Step 9: Selecting the Right Service Providers – Sanet as a "One-Stop Service"

It is also important to prepare for ongoing operations. To this end, external service providers must be sourced, vetted or recommended based on the experience of Sanet and its numerous customers in Thailand:

• External service providers such as IT consultants, insurance companies, catering, telecommunications or logistics

• Accounting, tax, and payroll services through Sanet Legal & Accountancy

• Sanet Marketing & Digital Marketing

• Flat-rate in-house legal advice, including seminars on local content and free trade agreements

Step 10: Project Management Costs for Investment in Thailand – Clear Guidelines

Sanet offers all of the consulting and other services mentioned above as a menu and mostly at fixed prices. However, you can also book Sanet as a

• Project management can be booked at a flat rate

• As a guideline, investors should budget around 5% of the total investment (e.g., €5 million investment = ~€250,000 in project management costs)

• Services are invoiced in equal monthly installments over the project period, typically around two years.

For the price of one senior employee, you gain access to an experienced, interdisciplinary team of international and local experts, ensuring your project is professionally managed from start to finish.

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