This article was written by our expert who is surveying the industry and constantly updating the business plan for a startup.
Starting a new venture requires meticulous financial planning to ensure you have sufficient capital to launch and sustain operations through the critical early months.
This comprehensive breakdown covers all major expense categories you need to budget for when launching a startup, from one-time legal fees and product development costs to ongoing operational expenses and contingency reserves. Understanding these costs upfront helps you avoid undercapitalization and gives you a realistic picture of the investment required to bring your startup to market.
If you want to dig deeper and learn more, you can download our business plan for a startup. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our startup financial forecast.
Launching a startup requires careful budgeting across multiple categories, from legal registration to working capital reserves.
The initial investment typically ranges from 1.5 million to over 5 million THB depending on the complexity of your product, team size, and market entry strategy.
| Cost Category | One-Time Investment | Ongoing Monthly/Annual Costs |
|---|---|---|
| Legal Setup & Registration | 25,000–56,000 THB (including legal consulting) | 20,000–80,000 THB/year (legal retainer) |
| Product Development | 730,000–1,100,000 THB (basic products); complex products can exceed several million THB | Varies based on iteration cycles |
| Equipment & Technology | 70,000–350,000 THB (for 5-15 staff) | 6,000–15,000 THB/month (software subscriptions) |
| Office & Utilities | Deposit typically 2-3 months' rent | 25,000–112,000 THB/month (rent, utilities, internet) |
| Marketing & Branding | 50,000–150,000 THB (website, branding) | 20,000–50,000 THB/month; 300,000–700,000 THB/year total |
| Payroll & Benefits | N/A | 21,750–76,750 THB/month per employee (including social security and benefits) |
| Insurance | N/A | 17,500–70,000 THB/year (general liability and workmen's compensation) |
| Working Capital Reserve | 500,000–2,000,000 THB (6-12 months of operating expenses) | N/A |
| Contingency Fund | 200,000–500,000 THB (10-20% of total startup capital) | N/A |
What does it cost to legally register and set up a startup company?
Legally establishing your startup requires an initial investment of 25,000 to 31,000 THB for basic company registration in Thailand.
This cost includes government filing fees, official documentation preparation, and service charges from the registration service provider. The process covers essential steps such as business name reservation, memorandum of association drafting, and registration with the Department of Business Development.
If your startup structure is more complex or requires specialized legal advice, you should budget an additional 10,000 to 25,000 THB for legal consulting services. This covers contract templates, shareholder agreements, and compliance guidance tailored to your specific business model.
For startups planning to hire foreign employees or operate in regulated industries, additional legal documentation and notary services may add 2,000 to 5,000 THB per document set. The total one-time legal setup investment typically ranges from 35,000 to 56,000 THB for most startups.
How much should you budget for product development before launch?
Product development costs for startups vary significantly based on complexity, but expect to invest between 730,000 and 1,100,000 THB for a modest physical or technology product.
This budget covers research and development, initial prototyping, basic design work, and early production runs or software development cycles. For digital products, this includes wireframing, UI/UX design, core feature development, and initial testing phases.
Physical product startups need to account for material sourcing, prototype iterations, tooling costs, and compliance testing. Technology startups must budget for software architecture, coding, database setup, and security implementation.
Highly complex products such as regulated medical devices, advanced hardware solutions, or enterprise software platforms can require investments reaching into the millions of THB. Startups developing artificial intelligence solutions, complex manufacturing equipment, or products requiring extensive regulatory approval should anticipate significantly higher development costs.
This is one of the strategies explained in our startup business plan.
What should you budget for essential equipment and technology infrastructure?
Equipment and technology infrastructure costs depend heavily on your startup's size and industry, but a basic setup for 5 to 15 staff members typically requires 70,000 to 350,000 THB upfront.
| Equipment Category | Cost Range (THB) | What's Included |
|---|---|---|
| Computer Hardware | 25,000–50,000 per workstation | Laptops or desktops, monitors, keyboards, mice, webcams for remote collaboration |
| Software Licenses | 3,000–10,000 per user/year | Operating systems, productivity suites, design tools, development environments |
| Networking Equipment | 15,000–40,000 total | Router, switches, access points, network cables, security appliances |
| Office Furniture | 8,000–20,000 per workstation | Desks, ergonomic chairs, storage units, meeting room furniture |
| Communication Systems | 10,000–30,000 total | VOIP phones, conference equipment, video conferencing setup |
| Server Infrastructure | 30,000–150,000+ (or cloud) | Physical servers, backup systems, or initial cloud infrastructure setup |
| Security Systems | 15,000–50,000 total | Access control, surveillance cameras, alarm systems, cybersecurity tools |
| Specialized Tools | Varies by industry | Industry-specific machinery, testing equipment, professional-grade tools |
Startups in specialized industries such as manufacturing, healthcare technology, or laboratory services will require significantly higher investments for industry-specific machinery and equipment. These costs can easily exceed several hundred thousand THB depending on the technical requirements of your product or service.
What are the monthly operating expenses for a startup?
Monthly operating expenses for a startup typically range from 31,000 to 137,000 THB depending on location, team size, and business model.
Office rent constitutes the largest single expense, ranging from 20,000 to 100,000 THB per month based on city, neighborhood, and office size. Bangkok city center locations command premium prices, while suburban or co-working spaces offer more affordable alternatives for early-stage startups.
Utilities including electricity, water, and high-speed internet typically cost 5,000 to 12,000 THB monthly. Software subscriptions for essential tools such as accounting software, project management platforms, security systems, and productivity applications add another 6,000 to 15,000 THB each month.
If you outsource accounting services rather than hiring in-house, budget 5,000 to 10,000 THB monthly for bookkeeping, financial reporting, and tax compliance. Many startups find this more cost-effective than maintaining a full-time accounting position during the early stages.
Additional recurring expenses include business phone lines, cloud storage, domain and hosting fees, and maintenance contracts for equipment. Startups should track these operating expenses carefully to maintain positive cash flow during the growth phase.
How much should you allocate for marketing and customer acquisition?
First-year marketing and branding costs for startups typically range from 300,000 to 700,000 THB, though aggressive growth strategies may require significantly more.
Initial branding and website development represent a one-time investment of 50,000 to 150,000 THB. This covers logo design, brand identity creation, professional website development, and initial content creation that establishes your startup's market presence.
Ongoing digital marketing activities including content creation, social media management, search engine optimization, and paid advertising campaigns require 20,000 to 50,000 THB monthly. This budget allows for consistent market visibility and customer engagement across multiple channels.
Customer acquisition costs vary dramatically by industry and business model. B2B startups often face higher acquisition costs due to longer sales cycles, while B2C startups may benefit from viral growth strategies that reduce per-customer costs. E-commerce startups should budget more heavily for paid advertising, while SaaS startups might invest more in content marketing and product-led growth strategies.
Channel diversification is crucial for startup success. Your marketing budget should cover experimentation across search ads, social media advertising, influencer partnerships, email marketing, and potentially traditional media depending on your target audience. Startups should track customer acquisition cost (CAC) meticulously to optimize spending efficiency.
You'll find detailed market insights in our startup business plan, updated every quarter.
What are the payroll and benefits costs for your initial team?
Payroll represents one of the largest ongoing expenses for startups, with total monthly costs per employee ranging from 21,750 to 76,750 THB including mandatory benefits.
| Position Type | Base Salary (THB/month) | Total Cost Including Benefits |
|---|---|---|
| Entry-level Administrative Staff | 18,000–30,000 | 21,750–36,750 THB (including social security and basic benefits) |
| Junior Developers/Designers | 25,000–40,000 | 28,750–46,750 THB (including social security and basic benefits) |
| Mid-level Professionals | 35,000–70,000 | 41,750–79,750 THB (including social security and enhanced benefits) |
| Senior Specialists | 60,000–100,000 | 66,750–109,750 THB (including social security and comprehensive benefits) |
| Management Positions | 80,000–150,000+ | 86,750–159,750+ THB (including social security and executive benefits) |
Mandatory social security contributions cost approximately 750 THB per month per employee, split between employer and employee. This covers healthcare, unemployment, and retirement benefits as required by Thai labor law.
Many startups offer additional health insurance coverage to attract quality talent, adding 3,000 to 6,000 THB monthly per employee. Competitive benefits packages may also include performance bonuses, stock options, professional development allowances, and flexible work arrangements.
When budgeting for your initial team, multiply the total cost per employee by your planned headcount and add a 10-15% buffer for recruitment costs, onboarding expenses, and potential salary adjustments. A five-person startup team typically requires 150,000 to 350,000 THB in monthly payroll expenses.
What professional services do you need to budget for?
Professional services including legal, accounting, and consulting support are essential for startup success and typically cost 42,000 to 140,000 THB annually, plus project-based consulting fees.
A legal retainer for ongoing contract review, compliance guidance, and intellectual property protection typically costs 20,000 to 80,000 THB per year. This ensures you have immediate access to legal advice when reviewing customer contracts, partnership agreements, or navigating regulatory requirements specific to your industry.
Annual audit services, which are mandatory for limited companies in Thailand, cost 20,000 to 50,000 THB depending on company size and transaction complexity. Your auditor reviews financial statements, ensures regulatory compliance, and provides the certified reports required for tax filing and investor relations.
Business consulting and specialized project management services are typically billed at 2,000 to 10,000 THB per hour. Startups often engage consultants for market entry strategy, operational optimization, technology implementation, or scaling guidance. Project-based consulting engagements can range from 50,000 THB for brief advisory work to several hundred thousand THB for comprehensive strategic projects.
Specialized professional services such as patent attorneys, tax advisors, HR consultants, or industry-specific experts should be budgeted separately based on your startup's unique needs. These services are invaluable for avoiding costly mistakes and accelerating growth.
What licenses, permits, and certifications will you need?
License and permit costs vary significantly by industry but typically range from 7,000 to 81,000 THB for initial setup and annual renewals.
Basic company registration costs 25,000 to 31,000 THB as covered earlier. Beyond this, industry-specific business licenses are required for sectors such as food service, transportation, tourism, healthcare, financial services, and education, costing 5,000 to 50,000 THB annually depending on the sector and operational scope.
Startups operating in regulated industries face additional certification requirements. Food technology startups need FDA approvals, healthcare startups require Ministry of Public Health certifications, financial technology companies must obtain Bank of Thailand licenses, and educational technology platforms may need Ministry of Education approvals. These specialized certifications can cost 10,000 to 100,000+ THB depending on complexity.
Additional notary services and compliance documentation cost 2,000 to 5,000 THB per document set when required. Startups planning international operations should also budget for export licenses, international certifications, or country-specific regulatory approvals.
Renewal fees for licenses and permits are typically due annually and should be factored into your ongoing operational budget. Missing renewal deadlines can result in penalties or business interruption, so maintain a compliance calendar with all critical dates.
Get expert guidance and actionable steps inside our startup business plan.
What insurance coverage does your startup need?
Comprehensive insurance coverage for startups typically costs 17,500 to 70,000 THB annually, with premiums varying based on industry risk, employee count, and coverage limits.
- General Liability Insurance: Costs 10,000 to 40,000 THB annually and protects against third-party claims for bodily injury, property damage, and advertising injury. This is essential for startups with physical locations or customer-facing operations.
- Workmen's Compensation Insurance: Required for all employers, this costs 2,500 to 10,000 THB per employee annually. Higher-risk industries such as manufacturing or construction face premium rates at the upper end, while office-based startups pay lower premiums.
- Property Insurance: Protects office equipment, inventory, and physical assets against fire, theft, and natural disasters. Premiums start at 5,000 to 20,000 THB annually depending on asset value and location risk factors.
- Cyber Liability Insurance: Increasingly important for technology startups, this coverage protects against data breaches, cyber attacks, and digital asset loss. Premiums typically range from 15,000 to 50,000 THB annually based on data volume and security measures.
- Professional Liability Insurance: Also called errors and omissions insurance, this protects service-based startups against claims of negligence, mistakes, or failure to deliver promised services. Costs vary widely from 10,000 to 100,000+ THB annually based on industry and revenue.
- Product Liability Insurance: Essential for hardware startups or any business manufacturing physical products, this covers claims arising from product defects or injuries. Premiums range from 15,000 to 100,000+ THB depending on product type and production volume.
- Directors and Officers Insurance: Protects company leadership against personal liability for business decisions. While more common for funded startups, this coverage costs 30,000 to 150,000+ THB annually.
Insurance needs evolve as your startup grows. Start with essential coverage (general liability and workmen's compensation) and add specialized policies as you scale, hire more employees, or expand into new markets.
How much working capital should you reserve for cash flow gaps?
Working capital reserves of 500,000 to 2,000,000 THB covering 6 to 12 months of operating expenses are essential for startup survival during the growth phase.
This reserve protects against common cash flow challenges including delayed customer payments, seasonal revenue fluctuations, unexpected equipment repairs, or slower-than-projected sales ramp-up. Startups with longer sales cycles or significant accounts receivable should maintain reserves toward the higher end of this range.
Calculate your working capital requirement by totaling monthly operating expenses (rent, utilities, payroll, software, insurance) and multiplying by six to twelve months. Service-based startups with minimal inventory can operate with six months' coverage, while product-based startups or those with significant upfront costs should maintain twelve months' reserves.
This working capital sits in highly liquid accounts where it remains immediately accessible for operational needs. It is separate from growth capital used for expansion, product development, or major equipment purchases. Maintaining adequate working capital is often the difference between startups that survive difficult periods and those that fail despite having viable business models.
Investors and lenders evaluate working capital reserves carefully when considering funding applications. Demonstrating disciplined financial management and adequate liquidity significantly improves your chances of securing external capital when needed.
What financing options are available and what do they cost?
Startup financing options each carry distinct costs, from interest rates on debt to equity dilution, requiring careful evaluation of which sources align with your growth strategy.
| Financing Type | Cost Structure | Best Suited For |
|---|---|---|
| Bank Loans | 6–10% annual interest rate; requires collateral and established revenue | Startups with proven business models, consistent revenue, and hard assets for collateral; suitable for expansion financing rather than initial launch |
| Angel Investment | 10–25% equity dilution; investors provide mentorship alongside capital | Early-stage startups with high growth potential seeking smart money; angels often invest 1–5 million THB and take active advisory roles |
| Venture Capital | 20–40% equity dilution per round; requires board seats and significant growth milestones | Scalable technology startups targeting large markets; VC firms invest 10 million THB+ and expect 10x returns within 5-7 years |
| Lines of Credit | 8–14% annual interest; requires strong financial history and creditworthiness | Established startups needing flexible capital for inventory, short-term expenses, or managing cash flow fluctuations |
| Government Grants | 0% interest; competitive application process; may require matching funds | Innovative startups in priority sectors (technology, green energy, healthcare); non-dilutive but time-consuming application process |
| Invoice Factoring | 1.5–3% of invoice value per month advanced | B2B startups with outstanding invoices needing immediate cash; expensive but provides quick liquidity without equity dilution |
| Crowdfunding | 5–10% platform fees; reward or equity-based | Consumer products with strong storytelling; provides market validation alongside capital but requires significant marketing effort |
| Bootstrapping | Personal capital and reinvested profits; zero external cost but limits growth speed | Service businesses or startups with low capital requirements; maintains full ownership but growth is limited to available cash flow |
Most successful startups use a combination of financing sources as they progress through different growth stages. Early-stage companies often rely on personal savings, friends and family, or angel investors, while later-stage companies access venture capital or bank loans as their financial position strengthens.
How much should you set aside for unexpected expenses?
Allocate 10 to 20 percent of your total startup capital as a contingency fund, typically representing 200,000 to 500,000 THB for most early-stage startups.
This contingency buffer protects against inevitable surprises such as equipment failures, regulatory changes requiring unexpected compliance costs, longer-than-anticipated product development cycles, or market shifts demanding strategic pivots. Startups operating in highly regulated industries or developing complex products should budget toward the higher end of this range.
Common unexpected expenses include emergency equipment replacements, urgent legal matters, unplanned hiring needs, additional product iterations based on customer feedback, or increased marketing spend to respond to competitive pressures. Having contingency reserves allows you to address these challenges without derailing core operations or seeking emergency financing on unfavorable terms.
This fund should remain untouched except for genuine emergencies or strategic opportunities that arise unexpectedly. Track contingency spending carefully and replenish the fund from profits as your startup stabilizes. Startups that maintain healthy contingency reserves demonstrate financial discipline and significantly improve their survival odds during the challenging early years.
It's a key part of what we outline in the startup business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Launching a startup requires detailed financial planning across numerous categories from legal registration through working capital reserves.
The comprehensive budgets outlined here provide realistic cost expectations for each major expense category, enabling you to create an accurate financial roadmap and avoid undercapitalization that causes many early-stage failures.
