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Start a Company in Thailand: Beginner’s Handbook 2024
17/09/2024
Starting a business in Thailand presents unique opportunities for both entrepreneurs and investors seeking to take advantage of the continued growth and strategic potential of the Thai and Southeast Asian market. With its rapidly developing economic framework, Thailand has become a top destination for international business expansion.
This article will explore five key reasons why starting a business in Thailand is the correct choice for companies looking to take advantage of the Thai and Asian markets.
Key points
- Thailand offers attractive government incentives for foreign businesses, including tax breaks, 100% foreign ownership options, and streamlined visa processes through programs like the Board of Investment (BOI).
- The country has a favourable business environment with low operating costs, affordable skilled labour, and a growing tech ecosystem supporting startups and innovation.
- Thailand’s strategic location provides access to ASEAN markets and proximity to major economies like China and India, making it a gateway to Asia and business expansion.
- The Thai government is actively developing initiatives like the Eastern Economic Corridor (EEC) and Industrial Estate Authority of Thailand (IEAT) to attract foreign investment in high-tech industries under the Thailand 4.0 policy.
- Thailand offers a high quality of life for expatriates, with a low cost of living, competitive real estate prices, and access to affordable healthcare.
Strong Government Support for Entrepreneurs
Thailand’s government offers desirable support and incentives to eligible businesses to encourage and promote business expansion and growth, particularly for foreign investors and entrepreneurs keen on starting a business in Thailand. These incentives are primarily managed through the Board of Investment (BOI) and typically includes 100% foreign ownership, tax reliefs, and streamlined processes at one-stop service centres.
Board of Investment (BOI) Promotions
When looking to start a company in Thailand, entrepreneurs should always consider applying for a Board Of Investment (BOI) promotion. Thailand’s BOI is a special government agency who focuses on promoting foreign investment within Thailand.
A BOI promotion removes many of the barriers to doing business in Thailand, such as the restrictions of the Foreign Business Act. More information on the Foreign Business Act can be found here.
While BOI companies are eligible for a variety of different incentives, 100% foreign ownership of the business and reduced requirements for hiring foreign staff are a significant bonus for companies. These incentives could be very beneficial for foreign companies looking to establish a presence in Thailand.
100% foreign ownership
Depending on the activities a business undertakes, it is likely that foreign ownership of a regular Thai Limited company would be limited to 49.99%. This limitation is due to the Foreign Business Act and the restrictions it places on foreign owned companies from undertaking certain business activities. For more information about this, please take a look at this article.
BOI promoted companies are not subject to these restrictions and generally can be 100% foreign owned (subject to certain exceptions).
Reduced quota for hiring foreign employees
BOI promoted companies, unlike other company structures, are not subject to any quotas when hiring foreign employees. For example, Thai Limited Companies cannot hire a foreign employee unless the following quotas are satisfied:
- A ratio of 4:1 Thai to foreign employees. Essentially, there must be 4 Thai employees employed by the company per 1 foreign employee.
The removal of this quota takes away a massive barrier to employing foreign staff and is a huge advantage to a BOI promotion when looking to start a company.
Other non-tax incentives:
- Permit to own land
- Permit to remit money abroad in a foreign currency
- Protection against nationalisation of the business
- The BOI will also announce a wide range of additional and often time-sensitive incentives for companies already operating under a BOI licence.
Tax Incentives:
- Exemption or reduction of import duties
- Exemption of a juristic person’s income tax and dividends
- Double deductions from the costs of transportation, electricity and water supply
- Eight-year corporate income tax exemption for:
- Knowledge-based activities focussing on R&D and design to enhance Thailand’s competitiveness, or
- Activities in infrastructure for Thailand’s development, or
- Activities using advanced technology to create value-added
- Five-year corporate income tax exemption for high-technology activities which are important to Thailand’s development, with few investments already existing here.
- Three-year corporate income tax exemption for activities with lower technology than above, but add value to domestic resources and supply-chain.
Tax Incentives for Foreign Investors
Thailand offers an attractive tax incentive scheme to enhance its competitiveness and attract high-value investments, investors and entrepreneurs. Eligible Thai companies and businesses can enjoy exemptions from import duties on machinery and raw materials, substantial corporate income tax exemptions, and deductions on infrastructure costs.
For instance, businesses involved in advanced technology and research and development may receive up to 13 years of corporate income tax exemption, providing significant benefits to any corporation investing in these sectors. Additionally, there are specific incentives for businesses operating in special economic zones (SEZs), and industrial estates including further tax reductions and support for investment in innovation and technology development.
One-stop Service Centers for Visas and Permits
To simplify the bureaucratic process, Thailand has established one-stop service centres that consolidate visa and work permit procedures for qualified foreign nationals who work for BOI, IEAT and EEC promoted companies.
This service significantly reduces the processing time and complexity typically associated with obtaining the necessary legal documentation to work and reside in Thailand. Eligible applicants include investors, experts, and their families.
Government Schemes and Projects
Thailand’s government has also announced its plan to develop the Thai economy through the Thailand 4.0 policy. Thailand 4.0 aims to transition the Thai economy to a value based economy based upon new and innovative technology including automation and robotics, aviation and logistics, and digital technologies. Central to this plan is the development and support of the Eastern Economic Corridor and Industrial Estate Authority of Thailand. Much like the BOI, these projects offer significant benefits to Thai companies and eligible foreign companies looking to start a business in Thailand.
The Eastern Economic Corridor
The Eastern Economic Corridor initiative covers three provinces along the Eastern Seaboard: Rayong, Chonburi, and Chachoengsao. The EEC plans to make these provinces a hub for innovation and industry and promote the following goals:
- Become a centre for high-tech industries and services.
- Improve connections throughout the region by land, sea, and air.
- Attract foreign businesses with special benefits and incentives.
- Develop “smart cities” with advanced infrastructure.
Companies who are eligible to launch a business within the EEC can get advantages like 100% foreign ownership, tax breaks, reduced requirements for obtaining visas and work permit, and the chance to own land outright (which is usually restricted for foreign businesses in Thailand).
The Industrial Estate Authority of Thailand (IEAT)
The Industrial Estate Authority of Thailand (IEAT) is a government organisation that oversees, plans and promotes industrial estates throughout the country. The IEAT provides a range of services and benefits, including:
- 100% foreign ownership
- Helping identify suitable locations based on a company’s needs.
- Streamlining the process of acquiring land (purchase or lease) within the estates.
- Streamlining the process of acquiring visas and work permits.
- Assistance opening a bank account
- Offering tax and non-tax incentives for businesses operating within the estates.
Favourable Business Environment
Thailand’s attraction as a business destination is significantly enhanced by its modern business environment, low operating costs, which includes affordable and skilled workers. These factors collectively contribute to a favourable economic environment for both new and established businesses.
Ease of doing business
The success of Thailand’s corporate governance is rewarded around the world every year, which further enhances its attractiveness as a destination for businesses. The World Bank Group’s Ease of Doing Business Report (2020) ranks Thailand 21st out of 190 countries. Thailand has been climbing the ranks over recent years and gained six points from the previous report due to excelling in areas such as minority shareholder protection.
What are the Most Common Structures to do Business for Foreigners in Thailand?
When it comes to foreign investment and starting a business in Thailand, Limited Companies are the most common structure for foreign businesses in Thailand. It offers limited liability for shareholders, meaning their personal assets are protected in case of company debts. You can also structure the ownership of the company to protect foreign investors and allow them to have an element of control.
Limited Companies in Thailand can also be 100% foreign owned (subject to the restrictions of the FBA). However, should the business engage in restricted business activities (for more details about restricted business activities, please see here), another significant benefit to a Limited Company is the ability for it to be used as a vehicle to apply for various promotions and Government programs such as a BOI promotion and the Treaty of Amity. Both of these provide unique advantages and incentives such as 100% foreign ownership and other benefits that are not available to other types of business structures in Thailand.
BOI Promotion
Thailand’s Board of Investment is a special government agency that focuses on promoting foreign investment within Thailand. A BOI promotion removes many barriers to doing business in Thailand, such as the restrictions of the Foreign Business Act.
The BOI provides numerous incentives for qualifying projects that could offer significant advantages to qualifying companies such as 100% foreign ownership and various potential tax incentives.
For more information about the BOI, please check the following blog posts:
BOI Company Formation in Thailand
Treaty of Amity
If you’re a citizen of the US, the Treaty of Amity could offer significant advantages for your company. The Treaty of Amity allows for majority foreign ownership and exempts companies from some foreign business restrictions that are placed on regular limited companies. However, there are limitations, such as not being able to own land and being restricted from certain business activities.
For more information, please see here.
Representative Offices
A representative office is a good option for initial market research, marketing activities, and liaison work.he requirements for hiring foreigners are significantly reduced with a Thai Employee to foreign employee ratio of 1:1 (rather than 4:1).
Representative offices cannot generate income or engage in commercial activities. They primarily serve as a liaison between the foreign head office and Thailand.
Cost-Efficient Business Environment
Entrepreneurs recognize Thailand for having one of the lowest labour costs in the Asia Pacific region.
Thailand offers entrepreneurs and investors the opportunity to hire local Thai employees at a competitive rate. For example, the minimum wages per province in Thailand are as follows:
| Province | Daily minimum wage (THB) |
| Chonburi, Phuket, Rayong | 354 |
| Bangkok, Nonthaburi, Nakhon Pathom, Pathum Thani, Samut Prakan, Samut Sakhon | 353 |
| Chachoengsao | 345 |
| Phra Nakhon Si Ayutthaya | 343 |
| Chaing Mai, Khon Kaen, Krabi, Lopburi, Saraburi, Nong Khai, Prachin Buri, Phangna, Nakorn Ratchasima, Trat, Suphan Buri, Songkhla, Surat Thani, Ubon Rachathani | 340 |
| Chanthaburi, Kalasin, Mukdahan, Sakon Nakhon, Samut Songkhram, Nakhon Nayok | 338 |
| Ang Thong, Kanchanaburi, Bung Kan, Chai Nat, Loei, Buriram, Nakhon Phanom, Phayao, Surin, Roe Et, Phattalung, Nakhon Sawan, Prachuap Kiri Khan, Phitsanulok, Sa Kaeo, Petchburi, Uttaradit, Yasothon | 335 |
| Amnat Charoen, Chiang Rai, Chumpon, Chaiyaphum, Kampaeng Phet, Mae Hong Son, Sisaket, Nong Bua Lamphu, Lampang, Lamphun, Mahasarakham, Sing Buri, Satun, Phrae, Sukothai, Ratchaburi, Tak, Nakhon Si Thammarat, Sisaket, Ranong, Phichit, Uthai Thani | 332 |
| Narathiwat, Nan, Pattani, Yala and Udon Thani | 328 |
While these rates will typically apply to lower skilled jobs such as labour work, it is also possible to find skilled workers at a competitive price. For example, office workers typically have a salary starting from 25,000 (695 USD) to 30,000 (835 USD) THB per month. High skilled positions such as a Senior Developer will receive a salary from 100,000 ++ THB (2,800 USD) per month.
Low Tax Rates for SMEs in Thailand
Thailand has a really attractive tax system and has a few different tax schemes which offer significant advantages for qualifying investors.
Tax Incentives from the Board of Investment
One of the numerous advantages of obtaining a promotion from the BOI is the tax incentives on offer for certain promotions. Potential tax incentives include
- Exemption or reduction of import duties
- Exemption of a juristic person’s income tax and dividends
- Double deductions from the costs of transportation, electricity and water supply
- Eight-year corporate income tax exemption for:
- Knowledge-based activities focussing on R&D and design to enhance Thailand’s competitiveness, or
- Activities in infrastructure for Thailand’s development, or
- Activities using advanced technology to create value-added
- Five-year corporate income tax exemption for high-technology activities which are important to Thailand’s development, with few investments already existing here.
- Three-year corporate income tax exemption for activities with lower technology than above, but add value to domestic resources and supply-chain.
It is important to note that not all BOI promotions offer tax incentives.
There are also similar tax incentives on offer for businesses who are eligible for a promotion from the Easter Economic Corridor and Industrial Estates Authority of Thailand.
Corporate Income Tax
The applicable tax rate for CIT in Thailand is 20%, however in practice the actual rate depends on the type of taxpayer e.g whether the payer is an SME or a medium sized company. CIT is calculated based on net profits derived from business activities in Thailand.
Special Tax Rates for SMES: Companies with paid-up capital not exceeding 5 million Baht and annual revenue from sales of goods and services not exceeding 30 million Baht are subject to the following rates:
Net profit not exceeding 300,000 Baht: Exempt from tax.
Net profit between 300,000 Baht and 3 million Baht: Taxed at 15%.
Net profit exceeding 3 million Baht: Taxed at 20%.
Personal Income Tax
Personal Income Tax (PIT) rates in Thailand are assessed on a progressive rate from (0% to 35%), for more information please see our blog post here. One of the advantages of PIT in Thailand is that the calculation of assessable income is territorial, which means that any foreign sourced income that has not been remitted to Thailand will not be taxed.
Thailand also has signed Double Tax Agreements (for more information, please see here) with over 60 countries. This aims to remove the burden of double taxation on certain types of foreign sourced income that is remitted into Thailand.
Double Tax Agreements and Opportunities for Thai Businesses
One important consideration is that the Double Tax Agreements (DTAs) with Hong Kong and Singapore offer an excellent opportunity for tax optimisation.
For example, Thai companies who have an entity in both Thailand and Hong Kong, could take advantage of a couple of key benefits. One such example would be that a Hong Kong company could be advantageous when it comes to software subscriptions or for paying for services to a company outside of Thailand. In such situations, there would be no Withholding tax, or VAT applied to the invoice. This makes it easier in terms of cost and in terms of bookkeeping. Such optimisation schemes could be a significant option for foreign investors looking to invest in Thailand.
For more information, please see our article on the benefits of a Hong Kong company here.
Growing Tech Ecosystem
Thailand’s technological landscape is rapidly evolving, marked by a booming startup scene, innovative coworking spaces, and a rich pool of skilled talent. These features have helped Thailand develop a reputation as a hub for digital innovation and entrepreneurship.
Emerging Startup Scene
Over the past few years, Thailand has seen a significant strengthening of its startup ecosystem, making it an attractive destination for entrepreneurs. Initiatives like the Thailand 4.0 policy plan to transform the Thai economy into an innovation-driven hub. Substantial support from the government through tax breaks and grants, along with active participation from large enterprises and venture capital, has fueled the growth of startups.
Furthermore, the presence of startup accelerators and corporate venture firms such as 500 TukTuks highlights the growing investment activities and opportunities helping the local startups receiving the funds they need to grow.
Coworking Spaces and Incubators
Coworking spaces in Thailand are not just shared office facilities but spaces that can help develop innovation and collaboration. Spaces like True Digital Park and HUBBA serve as both coworking areas and incubators, providing important forms of support such as business registration, market research, accounting services, and access to venture capital funds. These spaces often host workshops and seminars that are important for networking and skill enhancement. Additionally, the design and amenities of these spaces cater to a wide range of needs from privacy in work to community engagement, making them ideal for startups looking to launch their business and freelancers alike.
Access to a Skilled Workforce
The Thai government’s focus on upskilling the workforce to meet the demands of a digital economy is evident through initiatives like the e-Workforce Ecosystem Platform (EWE Platform). This platform not only facilitates skill development and job matching but also offers extensive training in high-demand digital skills such as cybersecurity and data analytics. The proactive approach in reskilling and upskilling ensures that the workforce remains agile and competitive, capable of supporting the growing needs of both local and international businesses.
Strategic Location; Gateway to Asia
Thailand’s geographical positioning at the crossroads of Asia significantly enhances its appeal as a strategic location for businesses aiming to penetrate the Asian markets. This strategic advantage is not just about being centrally located but also about the direct access it provides to some of the world’s fastest-growing economies.
Access to ASEAN Markets
Thailand is a founding member of the Association of Southeast Asian Nations (ASEAN) and the ASEAN Free Trade Area (AFTA). With AFTA, import duties among the ASEAN-6 countries, which include Thailand, have been reduced to zero, allowing for smoother trade between the member nations. This integration into ASEAN not only opens Thailand to a regional market with a population exceeding half a billion but also to a combined GDP of over US$1.5 trillion. The economic collaborations within ASEAN enhance Thailand’s capacity to trade extensively with neighbouring countries, boosting its status as a commercial hub.
Proximity to China and India
Thailand’s proximity to major global economies like China and India offers businesses access to large and booming consumer markets and burgeoning economic zones. The country’s location allows for efficient logistics and supply chain operations, making it an ideal hub for manufacturing and export-oriented businesses. This proximity is not only geographical but also economic, as trade routes are well-established and supported by a developed infrastructure.
Growing Domestic Consumer Market
Thailand itself boasts a significant domestic market, with a consumer base of approximately 69 million people. Market research from the McKinsey Global Institute suggests that Thailand is currently experiencing a rapid expansion in consumer spending, projected to grow from US$120 billion to US$410 billion by 2030. This growth is largely driven by an increasing middle class, with estimates suggesting that up to 90 percent of the population will soon belong to the consuming class. The Thai market is characterised by a strong demand for diverse goods and services, supported by a substantial increase in e-commerce and digital transactions.
The strategic location of Thailand, coupled with its integration into ASEAN markets, proximity to economic powerhouses, and a flourishing domestic market, collectively highlight its role as an important gateway to Asia for businesses looking to expand their reach in this dynamic region.
High Quality of Life
Thailand has developed a modern infrastructure which can rival those of the traditional business hubs of Hong Kong and Singapore.
Thailand also excels in other areas which are important for those who are looking to establish a business and move to Thailand. While business is essential, you should not forget about living in Thailand as well.
Thailand cost of living
The cost of living in Thailand is notably lower than in many Western countries. For instance, living expenses are about 34.2% lower than in the United Kingdom and 43.87% lower than in the United States. This includes significantly lower costs for essentials such as food, transport, and accommodation. Rent in Thailand, for example, is on average 56.1% lower than in the UK. Such economic conditions not only benefit the local workforce but also attract expatriates looking for a high-quality yet affordable lifestyle. Source : Statista
Competitive Real Estate Prices
The Thai real estate market offers competitive pricing, particularly in the commercial sector, which is poised for a strong performance due to increasing investments and a revival in tourism. The average price for real estate in city centres is around $313.89 per square foot, and $170.59 outside city centres, which is appealing for businesses looking to establish or expand their operations. Additionally, the growth in low-rise housing and the shift of developers towards such projects indicate a responsive market that caters to diverse business needs.
These low operating costs in Thailand not only reduce the financial burden on businesses but also provide a leveraged position to invest more into growth and expansion activities. This economic advantage is important for businesses planning to establish a strong foothold in the Southeast Asian market.
Affordable Healthcare
Thailand is renowned for its high-standard healthcare system, which became even more accessible after the country introduced universal health coverage in 2002. Today, 99.5% of the population is insured, and the country is a popular destination for medical tourism, offering treatments at about 20% of the cost compared to the US and Europe. Healthcare in Thailand is supported by a highly developed network of both public and private healthcare facilities, providing comprehensive care ranging from preventive to highly specialised medical treatments.
Questions that we are Often Asked About Company Registration in Thailand
When I start a company in Thailand, when do I have to choose a company name?
Choosing a company name is an integral part of the Thailand company registration process to register as a company. Companies must follow specific restrictions and requirements when reserving a company name in Thailand.
For more information, please see here.
Who can help me with the right business structure?
Belaws and our team of experts can be your partner in starting your business in Thailand. Our experts are highly familiar with company registration processes and can guide you towards the best fit for your needs.
We understand that choosing the right structure is a key consideration for your business success. Belaws will help you assess various factors like liability, ownership, tax implications, and business activities to ensure you make an informed decision.
Our expertise extends beyond just structure selection. Belaws can also advise you on the possibility of securing benefits through the Board of Investment (BOI) promotion programs in Thailand. We’ll analyze your business model and determine if a BOI promotion could be advantageous.
If your project is not eligible for BOI promotion, we can provide assistance in opening a limited company, a branch or representative office, or even a Treaty of Amity company should you be eligible.
Why create a business plan?
There are several reasons to create a business plan for a new business in Thailand:
A well prepared business plan acts as a roadmap, outlining your vision, strategies, and financial projections. It helps you navigate the initial stages of your business and make informed decisions throughout its growth.
If you require funding from a bank or investor, a comprehensive business plan is essential. It demonstrates the viability of your venture and increases your chances of securing a loan or attracting investment.
The process of creating a business plan forces you to think critically about your business. It helps you identify potential challenges, refine your target market, and solidify your financial goals.
Who can be a co-founder?
To start a limited company in Thailand, you will need to satisfy the following criteria:
- 2 shareholders
- One or more directors (individuals, not corporate)
- 50,000 THB minimum capital (2M THB if you want to hire a foreign employee)
- A registered corporate address in Thailand
The shareholders must be individuals to register the company. Once registered, the shares can be transferred to corporate shareholders.
Should I seek investors early before registering my company in Thailand?
There are pros and cons to seeking investors before registering your company in Thailand:
Benefits of seeking investors early:
Validation of your idea: Investors can provide valuable feedback on your business concept and its potential for success. Their interest can be a strong signal that you’re on the right track.
Securing funding upfront: Early investment can help you cover initial costs like registration, legal fees, and product development. This gives you more runway to get your business off the ground.
Drawbacks of seeking investors early:
Less control: Investors will likely want a say in how the company is run, which can mean giving up some control.
Time commitment: Pitching to investors takes time and effort that could be spent on developing your business.
Is it possible to Start a company in Thailand for foreigners?
Yes, it is possible to open a company in Thailand as a foreigner. However, there are limitations on the type of company that can be 100% foreign owned. Please see here for more info.
What are the company registration documents needed to open a company in Thailand?
The specific documents required for company registration will vary depending on the type of business entity you are registering. However, for a Thai Limited Company, the required documents include:
- A completed company registration application form with original signatures from the shareholders and directors
- Copies of the shareholders’ and directors’ passports or Thai ID cards
- A registered office address and a copy of the ownership book (Tabien Baan).
- Proof of payment of the registration fee
Please note that a company does not have to draft their own Articles of Association (AOA). If they choose not to have a custom AOA, the company will be regulated by the provisions of the Civil and Commercial Code. If the company however, wishes to have their own AOA, then they will need to be submitted during the application process. For more information about AOA, please see here.
Please see here for more info.
How can Belaws help?
For more information about starting and operating a company in Thailand why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Legal consultations are handled by experienced lawyers from the relevant fields of practice
Frequently asked questions
Can foreigners own 100% of a company in Thailand?
Foreigners can own 100% of a company in Thailand under certain conditions. The most common ways to achieve this are:
- Obtaining a Board of Investment (BOI) promotion
- Establishing a company under the US-Thailand Treaty of Amity (for US citizens)
- Setting up a representative office (with limitations on activities)
It’s important to note that without these special arrangements, foreign ownership in most sectors is typically limited to 49.99% due to the Foreign Business Act
What are the main benefits of getting a BOI promotion in Thailand?
The Board of Investment (BOI) promotion offers several advantages for businesses in Thailand:
- 100% foreign ownership in eligible sectors
- Corporate income tax exemptions (up to 8 years in some cases)
- Import duty exemptions on machinery and raw materials
- Relaxed visa and work permit regulations for foreign employees
- Permission to own land for business purposes
These incentives make BOI promotion an attractive option for foreign investors looking to establish a strong presence in Thailand
What is the minimum capital required to start a company in Thailand?
The minimum registered capital to start a limited company in Thailand is 50,000 THB (approximately $1,400 USD). However, if you plan to hire foreign employees, the minimum capital requirement increases to 2 million THB (about $55,000 USD) per foreign employee
How does the cost of living in Thailand compare to Western countries?
Thailand offers a significantly lower cost of living compared to many Western nations:
- Overall living expenses are about 34.2% lower than in the UK and 43.87% lower than in the US
- Rent is approximately 56.1% lower than in the UK
- Food, transportation, and accommodation costs are generally much more affordable
This lower cost of living makes Thailand an attractive destination for both businesses and expatriates seeking a high quality of life at a fraction of the cost
What are the main advantages of Thailand’s location for businesses?
Thailand’s strategic location offers several benefits for businesses:
- Central position in Southeast Asia, providing easy access to ASEAN markets
- Proximity to major economies like China and India
- Well-established trade routes and developed infrastructure
- Growing domestic consumer market (approximately 69 million people)
- Projected increase in consumer spending from $120 billion to $410 billion by 2030
These factors make Thailand an excellent gateway for businesses looking to expand their reach in Asia
What are the tax rates for small and medium-sized enterprises (SMEs) in Thailand?
Thailand offers favorable tax rates for SMEs:
- Net profit up to 300,000 THB: 0% (tax-exempt)
- Net profit between 300,000 THB and 3 million THB: 15%
- Net profit exceeding 3 million THB: 20%
These rates apply to companies with paid-up capital not exceeding 5 million THB and annual revenue from sales of goods and services not exceeding 30 million TH
How developed is Thailand’s startup ecosystem?
Thailand’s startup ecosystem has been growing rapidly in recent years:
- Government support through initiatives like Thailand 4.0
- Increasing presence of venture capital firms and accelerators (e.g., 500 TukTuks)
- Emergence of innovative coworking spaces and incubators (e.g., True Digital Park, HUBBA)
- Focus on upskilling the workforce in digital technologies
- Growing investment in areas like fintech, e-commerce, and digital services
This evolving ecosystem makes Thailand an increasingly attractive destination for entrepreneurs and tech startups
What are the main steps to register a company in Thailand?
The main steps to register a company in Thailand include:
- Choose and reserve a company name
- Prepare the memorandum of association and articles of association
- Hold a statutory meeting
- Register the company with the Department of Business Development
- Obtain a company seal
- Register for VAT (if applicable)
- Register for social security and workmen’s compensation fund
It’s advisable to work with a local legal expert or company formation service to ensure compliance with all regulations
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