Production

Rice is produced in rice fields composed of alluvial soil rich in
natural nutrients. The rice plants need a hot and humid climate and
deposition of few centimeters of water at the base in order to grow
properly. Different kinds of rice are produced in different parts of the
world, the most well known of them is the “Basmati” a highly flavored
and delicious variety, cultivated generally in India. Most of the rice
producers export a part of the annual production to foreign countries
after processing the grains at mills.

Delicacies

Rice is
used all over the world to produce a number of delicacies. It is
obvious that the delicacies differ from each other in terms of taste,
flavor and ingredients. But all of them have as the basic ingredient. It
serves as the staple diet of people especially in the Bengal region,
South India and parts of South-east Asia. Grinded when mixed with water
and some other edible liquids form a paste that is used in many
cuisines. Nowadays Europeans are also consuming rice as a part of their
daily diet.

Controversies

Over the last few years several controversies regarding the production
and processing of rice have clouded the industry. The main problem lies
in the excessive use of pesticides in the fields. These pesticides
protect the plants from being destroyed by insects but also leave
serious health hazards in human beings. As a result strict regulations
have been placed in order to control the use of pesticides so that
serious health problems can be avoided. Farmers as well as processors
need to abide by these rules and any deviation can result in
punishments.

Rice is mainly produced by unorganized farmers in
the rural areas. However, there are many companies that collect the rice
from the farmers and, process them in mills and sell them to consumers.
Many of these companies have their own websites where industrial buyers
can get an idea of the products and services offered by the companies.
It is also possible to place an online order for but it is always
advisable to contact the dealer in person while making a bulk purchase.
This would enable buyers judge the quality of the and place necessary
orders.

Accounting & Annual Audit

Every functioning company in Thailand needs to maintain and prepare accounts. This is not only applicable to limited companies, but also foreign companies, joint ventures and registered partnerships. Only a private individual or sole proprietorship is exempted from this obligation. All the account statements filed by a business organization need to comply with Thai Accounting Standards. They should be true and accurate in portraying the image of a company’s expenses and assets.

In addition to this, a new company needs to close its initial accounting year within 12 months after it has been registered. The balance sheet should also be filled accurately and filed after each period. A business can change its accounting year, but only after it has taken a written approval by the revenue division. All the financial declarations of a company need to be certified and examined by a professional account. Account statements need to be signed and submitted within four months of closing. An approval of shareholders is also needed before filing the statements.

These documents also need to be sent to the commercial registrar and revenue department. If a business is unable to comply with these regulations, it may cause a penalty of 100,000 THB. The accounts and relevant business documents need to be saved and kept for at least five years. In order to make sure everything is done in a proper manner, you need a professional accounting company.

CIT or Corporate Earnings Tax

Every business organization in Thailand needs to have a taxpayer identification number. This needs to be acquired within two months of establishing a business. Tax identification number serves for both CIT and VAT.

VAT

Every company in Thailand needs to be registered for VAT if it comes under any of the following three categories.

Business activities and daily operations of a business are subjected to VAT. For instance, import and export of goods.

If the turnover of the company exceeds 1,800,000 Baht per year. Once a company reaches this figure, it needs to apply for a VAT number within 30 days.

If a company wants to use the services of a foreign national, it is necessary to acquire a work permit from the Government.

Social Security Fund & Payroll Services

For every business organization in Thailand, it is necessary for both employer and employee to contribute 5% earnings to Government funds.

As you can see, it can be tricky and complicated to manage everything on your own. Moreover, if you fail to do it in a proper manner, you may have to pay hefty fines and penalties. Therefore, it is extremely important to hire professional accounting services in Thailand. These companies will manage your finances and accounts to make sure you can focus on other aspects of your business.