Company Registration in Thailand for Expats

 

Thailand is a nation that has been growing quickly, with a robust economy and many options for international investors. However, for foreigners or expats, business registration in Thailand can be difficult and complex. Putting aside all linguistic and cultural difficulties, there are several laws and rules that must be complied with. The corporate culture and climate differ from what many foreigners are used to, and navigating the laws and regulations is not an easy task.

Challenges & Solutions for Expats: Business Registration in Thailand

Foreign Business License for Expats in Thailand

For expats or foreigners, launching a business in Thailand is a challenging procedure. The Foreign Business Act of 1999 is the main hurdle. It is because it limits and outlaws numerous commercial sectors and categories for foreign nationals. However, the statute permits foreigners to do business in these categories if they obtain a foreign business license in Thailand from the Foreign Business Committee and the Director-General of the Department of Business Development, Ministry of Commerce. Additionally, there is a distinct statute regulating foreign land ownership, banking, insurance, finance, and shipping.

BOI Benefits for Expats in Thailand

Nonetheless, the Thai government provides prospective entrepreneurs with sufficient capital, suitable infrastructure, and a productive labor force. Thailand’s Board of Investment is the primary government organization that encourages foreign investment in the nation. It offers incentives, services, and information to foreign businesses, among other auxiliary services. The incentives include everything from tax breaks to import and export duty exemptions on raw materials. To avail of these benefits, you must apply for BOI promotions in Thailand while registering your business here.

Registering a business in Thailand as an expat or foreigner is challenging and involves numerous obstacles that are hard to overcome. Several laws and regulations currently exist that must be followed for them to be in compliance. For business registration in Thailand, the barriers can be removed and the challenges can be met with a little preparation and persistence.

Key Steps of Business Registration for Expats in Thailand

Foreigners can start businesses in Thailand by following the rules and other requirements indicated below. It is necessary to meet the necessary compliance before starting a business in Thailand.

Find a Thai Partner

The Foreign Business Act prohibits foreigners from owning more than 49% of the shares in Thai companies. This suggests that the local Thai partner owns 51% of the company’s shares, with the foreign partner limited to 49% shares. Therefore, for your company to operate in Thailand, it must abide by the provisions of the Foreign Business Act. This makes it mandatory to have a local Thai partner who can be an active part of the company. The laws do not allow the foreign firm to operate in the same capacity as a single proprietorship.

Foreigners wishing to operate a small business in Thailand should ideally form an ordinary partnership, which has separate legal standing, rights, and obligations from the partners. An alternative structure for foreign firms to establish their business is a limited partnership, wherein their liability is restricted to the total amount of their investment. The last option available to a foreigner is to establish a limited company, wherein the funds must be in shares under Thai legislation, and the business registration involves three or more promoters and shareholders. To establish the business, any of these business models will require a local Thai partner.

Check the eligibility for BOI Promotions

The Board of Investment of Thailand grants privileges to foreign investors who can hold 100% ownership of their business in Thailand. The board supports and advocates for small clusters of foreign businesses that provide them with work permits and visas. This also exempts corporate tax to support and safeguard foreign businesses. Anyone interested in starting a small business in Thailand can apply for the Board of Investment (BoI) promotion. The lengthy and intricate process requires the businesses registered under them to file or disclose the monthly report and to hire accounting firms or business attorneys to help them comply with the law.

Register your Business with the Department of Business Development of Thailand

Although the procedure may be challenging, it is necessary to guarantee that the company name is unique. The minutes of the meetings, evidence of share capital payment, and all documents about the list of shareholders and their shareholding pattern are among the documents necessary to register the business. One must register their business with the Department of Business Development to comply with the legislation (DBD).

It is necessary to apply for additional financial license registrations, such as VAT licenses, after receiving the company registration certificate in Thailand from the relevant authority. If the company’s yearly sales exceed 1.8 million baht, VAT registration becomes mandatory. The Revenue Department of Thailand holds the authority to receive VAT Applications and grant licenses to businesses in Thailand. Depending on the kind and scale of the firm, several additional permits and registrations are applicable. Konrad Legal can assist you with incorporation services as well as evaluating license requirements.

Apply for a Visa and Work Permit

A letter from the local labor organization, a letter from the Thai business partner providing employment, and a list of the documents listed in the Thai embassy are all required for the visa application procedure. In addition, there is a $20 cost for double-checking of application documents. Moreover, a non-immigrant B visa is insufficient to obtain a work permit; one must instead obtain a work permit in Thailand. However, these standards are not applicable for the business and its partners to follow if the business has BoI promotion.

Open a Corporate Bank Account

Following a business license, a business can select a bank based on suitability, requirements, and preferences. While setting up commercial banking accounts, an accounting team or firm is helpful to ensure compliance with banking standards. Accounting businesses doing business in Thailand must establish appropriate bank accounts and adhere to banking regulations.

For foreigners, running a business in Thailand may be both rewarding and challenging. Thailand has made remarkable strides in both economic globalization and the construction of a robust infrastructure. However, Thailand has been quite strict with international company owners wishing to conduct business in Thailand. For foreign business owners, the maximum 49% shareholding and the drawn-out process of getting a letter of intent might be difficult.

However, you must keep in mind that to register your business in Thailand, you should never opt for nominee shareholding.

Our team of specialists will respond to your inquiry regarding how to register a company in Thailand within the next 24 hours. Email us at officer@konradlegal.com.

VAT Application after Company Registration in Thailand

 

If your new business in Thailand projects to make more than 1,800,000 Baht in revenue per year, then you must go for Value Added Tax (VAT) Registration with the Thailand Revenue Department. Any Thai business that wants to sponsor a foreign worker’s work permit must also register for VAT. A Thai corporation must also register for VAT to obtain some sort of business permit.

Otherwise, it is optional to register for VAT. If a Thai business has significant start-up costs, such as office equipment and design/fit-out services, it may choose to voluntarily register for VAT.

Remember that it is difficult to revoke your VAT registration once you have registered for it. Hence, if you’re thinking about registering voluntarily, don’t make this decision hastily.

If you have decided to go for VAT Registration for your business in Thailand, let us guide you through the process.

Process of VAT Registration in Thailand

The following paperwork needs to be ready to register for VAT:

• Three sets of the P.P.01 form. This is an application form for VAT registration.
• A housing registration letter showing where the company is located with the signature of the building owner (if renting, you must also give a signed copy of your landlord’s national identification card)
• A copy of the passports, visas, and work permits of company directors with their signatures
• A photograph of company headquarters, including a signboard and inside of the offices
• Rental agreement (for rented premises)
• The company registration certificate.

Your landlord might charge you extra if you rent an office so they can issue you a house registration and other necessary paperwork.

You have to send the registration application to your local Area Revenue Office for Bangkok, or to the local Area Revenue Branch Office if elsewhere in Thailand.

However, now you can register online under the guidance of a local Thai tax consulting firm.

What to do after VAT Registration for your Business in Thailand?

Businesses that register for VAT have to do the following on mandate:

• Provide a tax invoice for every sale, charge 7% output VAT on products and services, and send the money you make back to the revenue department.
• A 7% input VAT is also applied to purchases made by the company; this VAT can be deducted from sales VAT. VAT paid on certain goods and services might be subtracted from the VAT that is levied and collected. The business must save the tax invoice from purchases as evidence of the tax credit that can be applied to deductions.
• The P.P. 30 form is mandatory to pay VAT for the previous month by the 15th of every month.
• When paying for a service that is VAT registered, you must file a P.P.3 or P.P.53 form, issue a withholding tax certificate, and withhold tax.
• Together with your company registration, the VAT registration certificate needs to be on display at your company’s physical location.

If you fail to file the P.P.30 form for more than six consecutive months, your VAT registration will be automatically terminated. Also, you will be fined.

Is your business exempted from VAT Registration in Thailand?

Use the list below to see if your business qualifies for VAT registration in Thailand. All business operations with a zero percent VAT rate or exemption from VAT are as follows:

1. Small enterprises whose annual turnover is less than 1.8 million baht
2. Exported goods
3. Services provided in Thailand and consumed out of the country
4. Businesses that sell or import unprocessed agricultural products and related goods
5. Businesses that sell or import newspapers, magazines, and textbooks
6. Businesses that offer the following activities:
   – Domestic and international transportation;
   – Healthcare provided by the government and public hospitals;
   – Education provided by the government and recognized educational institutions;
   – Medical auditing services;
   – Lawyer services in court;
   – Institutions that offer cultural services such as sports, museums, zoos, etc.
   – Institutions whose income comes from commerce, agriculture, transport, etc.
   – Institutions of investigations, research, and other technical services;
   – Activities kept under the supervision of the Customs Department;
   – Religious and charitable services;
   – Services of government agencies;
   – Services of local authorities. 

If your business in Thailand commits to yielding a turnover of more than 1,800,000 Baht annually and it is not in the list above, you have to go for VAT Registration in Thailand. 

The Bottomline

All entities that are in good legal standing in Thailand must register for VAT. You must retain your company’s books on an annual basis after registering for VAT in Thailand. Consultants and advisors at  Konrad Legal will keep your documents up to date while adhering to legal requirements.

Contact our company for more precise details regarding VAT certification in Thailand. Allowing us to assist you with the Value Added Tax will result in successful registration, timely and accurate documentation preparation, and regular, accurate financial record-keeping.

We offer financial management to international companies. So, as quickly as feasible, we can assist you in obtaining the VAT registration number and certificate in Thailand. Financial management for international businesses is one of our services. As a result, we can assist you in obtaining the VAT registration number and certificate in Thailand as soon as feasible. By doing this, you can ensure that you won’t miss the registration deadline or run into problems getting the VAT registration number.

We have a wealth of tax service experience in Thailand. You may count on us to create the value-added tax report for you each month if you choose us. Nonetheless, we will assist you in submitting the paperwork to the Revenue Department monthly. 

With our professionals handling every area of your accounting—many of them are native Thai speakers—you won’t have to worry about making any mistakes. Simply email us at officer@konradlegal.com and our team of professionals will get back to you within one Thai working day.

Company Registration in Thailand for Foreign Investors

 

In the ever-expanding landscape of global entrepreneurship, Thailand has emerged as a beacon for savvy investors and visionary business owners seeking to establish their presence in Southeast Asia. Navigating the process of company registration in Thailand requires a keen understanding of the local business environment, legal intricacies, and cultural nuances. This article serves as a comprehensive guide on company registration in Thailand, offering insights and practical tips for global entrepreneurs. 

If you are planning to embark on the exciting journey of establishing your business presence beyond borders, this is your must-read.

Thailand’s Business Allure

• Thailand’s strategic location, vibrant economy, and favorable investment climate make it an attractive destination for global entrepreneurs. The Land of Smiles boasts a diverse market, a skilled workforce, and a thriving tourism industry, creating a fertile ground for various business ventures. Note that, there are great business opportunities in the tourism industry of Thailand.

Legal Landscape: Understanding the Basics

• Before delving into the intricacies of company registration in Thailand, it’s crucial to grasp the fundamental legal aspects governing businesses in Thailand. The legal system, business structures, and regulatory requirements play a pivotal role in the seamless establishment of a company.

Choosing the Right Business Structure

• Thailand offers various business structures, each catering to different needs and goals. From limited companies and partnerships to branch offices and representative offices in Thailand, understanding the nuances of each structure is essential for making informed decisions aligned with your business objectives.

Navigating the Registration Process

• The company registration process in Thailand involves several steps, including name reservation, filing incorporation documents, and obtaining necessary licenses. Navigating this process requires meticulous attention to detail and adherence to local regulations.

Work Permits and Visas

• As a global entrepreneur, ensuring compliance with Thailand’s immigration laws is paramount. Understanding the intricacies of work permits and visas for foreign employees is crucial to avoiding legal hurdles and fostering a smooth operational transition.

Cultural Intelligence and Business Etiquette

• In a country known for its rich cultural heritage, developing cultural intelligence is as important as understanding legal requirements. Adhering to Thai business etiquette, building relationships, and respecting local customs can significantly contribute to the success of your venture.

Financial Considerations

• Financial planning and understanding the tax landscape in Thailand are integral components of successful company registration. Navigating tax regulations, identifying incentives, and working with local financial experts contribute to sound financial management.

Technology and Innovation in Thai Business

• Embracing technology and innovation is key to thriving in the global marketplace. Thailand’s growing tech sector offers opportunities for entrepreneurs to leverage digital advancements, facilitating efficient business operations and market expansion.

Networking and Business Support

• Building a network in Thailand’s business community can open doors to valuable partnerships and collaborations. Engaging with local chambers of commerce, and business associations, and seeking professional advice can provide valuable insights and support.

Future Outlook and Sustainability

• A forward-looking entrepreneur considers not only the current business landscape but also the future trends and sustainability initiatives in the host country. Thailand’s commitment to sustainable development creates opportunities for businesses aligned with environmental and social goals.

Embarking on the journey of company registration in Thailand as a global entrepreneur requires a holistic approach that encompasses legal compliance, cultural understanding, and strategic planning.

Beyond borders lies a world of opportunity in Thailand. Here, the fusion of tradition and modernity creates an environment conducive to innovation and growth. By leveraging the insights provided in this handbook, entrepreneurs can navigate the complexities of establishing a company in Thailand. Furthermore, the information in this handbook will surely set the stage for a successful and sustainable business venture.

For further support and assistance in the process of company registration in Thailand, write to us. Email us about your plan of doing business in Thailand at officer@konradlegal.com and our team will get back to you with all the details.

Outsourcing Accounting Services in Thailand

 

Outsourced Accounting Services in Thailand can not only help businesses here save time and effort, but can also protect them from heavy penalties. As a leading accounting and tax service provider in Thailand, we have witnessed many businesses run aground due to their lack of knowledge and experience in Thai Accounting & tax standards, specifically, foreign businesses.

In Thailand, outsourcing accounting, audit, and tax services is a common practice for businesses looking to streamline their operations and ensure compliance with local regulations. Here are some key points to consider when outsourcing these services in Thailand:

Accounting Outsourcing in Thailand

• Bookkeeping: Outsourcing bookkeeping services in Thailand can help businesses maintain accurate financial records, manage accounts payable and receivable, and ensure compliance with accounting standards.
• Financial Reporting: Outsourced accounting firms in Thailand can assist in preparing financial statements and reports, providing valuable insights for decision-making.
• Payroll Processing: Outsourcing payroll services in Thailand will help ensure timely and accurate payment of salaries, tax withholding, and compliance with labor laws.

Audit Outsourcing in Thailand

• Internal Audit: Some companies outsource internal audit functions to ensure independent and objective evaluations of internal controls and processes.
• External Audit: Businesses may engage external audit firms to conduct statutory audits for compliance with regulatory requirements and international accounting standards.

Tax Outsourcing in Thailand

• Tax Compliance: Outsourcing tax services helps businesses stay compliant with Thai tax laws, including filing returns, meeting deadlines, and managing tax liabilities.

• Tax Planning: Outsourced tax professionals can provide strategic tax planning advice to optimize tax efficiency and minimize liabilities.

Choosing Service Providers

• Look for firms with expertise in Thai accounting standards, tax regulations, and audit requirements.
• Consider the reputation and experience of the outsourcing service provider in your industry.
• Ensure that the service provider uses secure and reliable technology for handling financial data.

Regulatory Compliance

• Verify that the outsourcing firm is familiar with Thai regulatory requirements relevant to accounting, audit, and taxation.
• Ensure that the service provider follows ethical practices and adheres to professional standards.

Communication and Reporting

• Establish clear communication channels and reporting structures to stay informed about the progress of accounting, audit, and tax-related activities.
• Define expectations regarding the frequency and format of financial reports and updates.

Cost Considerations

• Evaluate the cost-effectiveness of outsourcing compared to in-house alternatives.
• Consider the long-term benefits and potential cost savings associated with outsourcing these functions.

Data Security

• Implement robust data security measures and ensure that the outsourcing provider follows industry best practices for data protection.

Why Outsource Accounting, Audit & Tax Services in Thailand?

Thailand’s competitive business landscape demands a cost-effective approach. Outsourcing accounting not only reduces overhead costs but also provides access to top-notch professionals without the burden of hiring and training in-house staff. Therefore, it is always wise to free up valuable internal resources by outsourcing non-core functions. By entrusting your accounting tasks to experts, your team can concentrate on core business activities, fostering innovation and growth.

As your business expands, so do your accounting needs. Outsourcing allows for seamless scalability, ensuring your financial processes can adapt to the changing demands of your organization. Navigating Thailand’s intricate financial regulations can be challenging. Outsourcing your accounting, audit, and taxation to us ensures access to our pool of highly skilled professionals well-versed in local regulations and international accounting standards. 

Outsourcing will allow you to tap into this expertise, ensuring accurate financial reporting and compliance. This will surely ensure compliance and minimize the risk of legal issues. All you have to do is simply email us your requirements to officer@konradlegal.com and our team will get back to you with the guidance and best outsourced accounting services in Thailand – Konrad Legal.

Dairy Company Registration in Thailand

 

Embarking on the journey to register a dairy company in Thailand requires more than just a passion for dairy products—it demands a thorough understanding of the intricate web of legal requirements that govern the food industry in the country. From stringent food safety standards to business registration procedures, navigating the regulatory landscape is a critical step in ensuring the success and compliance of your venture.

Your plan to register a dairy company in Thailand involves compliance with various legal requirements. This article aims to provide prospective entrepreneurs with a foundational overview of the legal prerequisites involved in registering a dairy company in Thailand.

Business Registration

• Register your business with the Department of Business Development under the Ministry of Commerce in Thailand. Choose an appropriate business structure, such as a limited company.
• Obtain a business registration certificate.

Location and Zoning

• Ensure that the location of your dairy company complies with local zoning regulations.

FDA Approval

• Obtain approval from the Food and Drug Administration (FDA) in Thailand for the production and sale of dairy products. This may involve inspections and compliance with food safety standards.

Permits and Licenses

• Acquire the necessary permits and licenses from relevant authorities, such as the Department of Livestock Development and the Ministry of Public Health.

Environmental Compliance

• Comply with environmental regulations, especially if your dairy company involves waste disposal or other environmental considerations.

Quality Standards

• Ensure that your dairy products meet the required quality standards. This may involve adherence to the Thai Industrial Standard (TIS) or international standards.

Labor Laws

• Familiarize yourself with labor laws and regulations in Thailand. Ensure compliance with employment contracts, wages, and working conditions.

Halal Certification (if applicable)

• If you plan to produce halal dairy products, consider obtaining halal certification from the Central Islamic Council of Thailand (CICOT) or another recognized halal certification body.

Taxation

• Understand and comply with tax regulations, including corporate income tax and value-added tax (VAT). Consult with a Thai accountant to ensure proper tax planning.

Import and Export Regulations

• If your dairy company involves importing or exporting products, be aware of and comply with relevant customs and trade regulations.

Insurance

• Consider obtaining insurance coverage for your dairy business, including liability insurance and coverage for your assets.

Labeling and Packaging

• Ensure that your product labeling complies with local regulations, including language requirements and nutritional information.

Distribution and Sales

• If you plan to distribute and sell your products, comply with regulations related to distribution, sales, and marketing.

To thrive in this competitive landscape, aspiring dairy entrepreneurs should consider this article as a starting point for their journey. However, it is essential to engage with local experts, legal advisors, and business consultants to gain real-time insights into the evolving regulatory environment. By doing so, entrepreneurs can ensure that their dairy ventures not only meet the necessary legal standards but also foster a positive impact on the community, the environment, and the broader economy.

As Thailand’s dairy market continues to expand, those who approach their business endeavors with a commitment to compliance and a keen understanding of legal intricacies will be better positioned to capitalize on the opportunities that lie ahead. The success of a dairy company in Thailand is not only measured by the quality of its products but also by its ability to navigate and adhere to the legal foundations that uphold the integrity of the industry.
For all types of legal, accounting, and tax support to register your company in Thailand, feel free to email us at officer@konradlegal.com.

Setting Up Medical Company in Thailand - Process & Benefits

 

Thailand’s medical industry offers a range of opportunities for foreigners looking to establish a foothold in this growing sector. Are you a medical or healthcare professional, entrepreneur, investor, or researcher? This article is for you as it covers the ideas of the best opportunities for Medical Company Formation in Thailand.

Medical Tourism Services

Medical Concierge Services

Establishing a company that provides personalized concierge services for medical tourists. Furthermore, it helps them navigate the healthcare system, arrange travel logistics, and ensure a seamless experience.

Health and Wellness Tourism Packages

Creating specialized health and wellness tourism packages that combine medical treatments with spa services, cultural excursions, and leisure activities.

Healthtech and Telemedicine

Telemedicine Platforms

Developing or partnering with existing telemedicine platforms to provide virtual healthcare consultations and services, leveraging technology to reach patients both domestically and internationally.

Healthcare Apps

Creating apps for appointment scheduling, prescription management, and health monitoring to cater to the growing demand for digital health solutions.

Medical Training and Education

Medical Training Centers

Establishing training centers that offer courses and workshops for healthcare professionals, focusing on specialized skills, certifications, and the latest medical advancements.

Language and Cultural Training for Medical Professionals

Providing language and cultural training programs for foreign medical professionals seeking to work in Thailand.

Health and Wellness Businesses

Wellness Retreats and Spas

Investing in or starting wellness retreats or spas that cater to both locals and medical tourists, offering services such as holistic treatments, nutritional counseling, and stress management programs.

Fitness and Rehabilitation Centers

Opening fitness centers or rehabilitation facilities that integrate medical expertise into fitness programs for preventive healthcare.

Pharmaceutical and Medical Device Distribution

Import and Distribution

Partnering with pharmaceutical or medical device companies to import and distribute their products in the Thai market.

Regulatory Consulting Services

Providing consulting services to guide foreign pharmaceutical and medical device companies through Thai regulatory processes.

Research and Development

Clinical Trials Management

Participating in or managing clinical trials for pharmaceuticals or medical devices, leveraging Thailand’s diverse patient population and research capabilities.

Collaborative Research Initiatives

Forming partnerships with Thai research institutions and universities to collaborate on medical research projects.

Health Insurance Services

International Health Insurance Brokerage

Establishing a brokerage or consultancy focused on providing health insurance solutions for expatriates, including coverage for medical treatments in Thailand.

Collaboration with Local Insurers

Partnering with local insurance companies to tailor health insurance products for the international community.

Alternative Medicine and Wellness Products

Herbal and Alternative Medicine Products

Developing or distributing herbal and alternative medicine products, capitalizing on Thailand’s rich tradition of traditional medicine.

Wellness Product Retail

Establishing retail outlets or online platforms for wellness products, including supplements, organic foods, and natural health products.

BOI Thailand Privileges for Foreign Investors in the Thai Medical Industry

The Board of Investment (BOI) of Thailand offers a variety of incentives for investment projects that further official development objectives. Additionally, import duties on machinery, raw materials, and other essential components used to manufacture exported items are exempted. Yet in terms of non-tax incentives, the BOI also approves the ownership of land for project purposes, the hiring of foreign nationals, and the taking or transfer of foreign currency overseas.

If you are not from Thailand, the major assistance that you can get from us is our expertise in Thai legal, accounting, and taxation processes along with decades of experience in the Thai market. Moreover, this will help you focus on your business plan rather than learning the Thai rules and protocols. Additionally, you get the following support from us:

1. Fast Processing of Your Applications
2. We complete the Documentation on your behalf
3. Assist in your Immigration and Work Permit Process
4. Full support in your Payroll Management
5. We have a specialized team for Accounting, Auditing & Taxation

Therefore, all you need to have is a brilliant idea, investment, and a trustworthy Thai Partner (if needed). All the other arrangements are completely on us. Additionally, our good, long, and healthy relationship with Thai officials and authorities will help speed up your medical company formation process in Thailand.

So, are you thinking of tapping the potential of the medicine, pharma, and healthcare market of Thailand? You can book a round of free consultations by emailing us at officer@konradlegal.com.

How to Start Fintech Company in Thailand?

 

A phenomenal shift in the global corporate landscape is one of the outcomes of the rapid improvements in the Fintech Industry. This evolution has brought about a significant transformation in global commerce. Southeast Asia is one of the areas driving this revolutionary shift, setting the pace for emerging trends and adopting fintech technology first. Thailand, as one of the leading Southeast nations, embraces business evolutions wholeheartedly and welcomes foreign investors to start fintech businesses in Thailand.

Thailand is a prominent focus for international firms seeking to create a presence in Southeast Asian countries through fintech expansion. With the help of thoughtfully crafted legal frameworks and government incentives that actively assist the development of fintech ventures, Thailand’s digital marketplace is expanding at a remarkable rate. Thailand has a talent pool full of tech-savvy people.

The combination of all of these factors fosters an incredibly favorable atmosphere for the growth of the fintech business in Thailand. Yet it’s important to understand that there are obstacles as well as opportunities when entering this industry, not the least of which is figuring out how to set it up. Amidst all options incorporating a fintech business via the Board of Investment in Thailand (BOI) is the most convenient one. This article discusses the process in detail.

Start a Fintech Business in Thailand through the BOI

Promoting and enabling foreign direct investment is the responsibility of the BOI, a government agency. Attracting high-value investments that boost the nation’s technological and economic development is its main goal. To promote investment and expansion in strategically important industries, the BOI grants various incentives and privileges to qualified companies, including those in the fintech industry.

The BOI application is the most effective way for fintech companies to access the Thai market out of all the available options. The substantial advantages of the BOI application are examined in this article, with particular attention paid to tax breaks, industries that are promoted, fintech business categories, regulatory obstacles, and the application procedure. Fintech companies can strategically navigate Thailand’s rapidly expanding digital market by thoroughly understanding the benefits and considerations of the BOI route.

Benefits of BOI Certification for Fintech Business in Thailand

For international fintech companies looking to enter the Thai market, the BOI certification is a favorable option due to its several benefits. These advantages cover both BOI tax and non-tax incentives, fostering a favorable atmosphere for the development and expansion of businesses.

BOI Tax Incentives

The alluring tax incentives are among the biggest benefits of earning BOI certification. While the manufacturing and industrial sectors are the focus of many BOI programs, tax exemptions or reductions are available to BOI-certified fintech businesses for a maximum of eight years, contingent upon the amount of investment and the nature of the business operations. Some of the exclusive tax benefits are as follows:

• Exemption for a duration of three to eight years from corporate income taxes
• Dividends from initiatives marketed during the corporate income tax holiday are exempt from taxes.
• Permit to deduct losses from income for a maximum of five years.

It is important to keep in mind that depending on the exact good or service associated with the project being promoted, the BOI tax incentive details may change. Furthermore, as decreasing regional disparities within Thailand is one of the BOI’s duties, the project’s geographic location may have an impact on the degree of benefits.

BOI Non-Tax Incentives

Foreign Business Ownership

Full foreign ownership is permitted for a portion of fintech companies with BOI certification, allowing them to circumvent usual limits. For foreign investors looking to get into the Thai market, this exemption could be advantageous.

Easy Work Permit and Visa Issuance Process

Companies that have earned BOI certification are entitled to expedited procedures for securing work permits and visas for foreign experts, executives, and skilled laborers. This makes it easier to find and hire talent from around the world, which adds to a workforce that is both talented and diverse.

Licensing Support and Facilitation

The BOI provides assistance and facilitation services to certified fintech businesses. These services help businesses get the licenses they need, interact with the right government bodies, and successfully navigate regulatory requirements.

Land Ownership Permissions

Companies with BOI certification, as opposed to those without, can possess land in Thailand to conduct business.

Remittance of Foreign Currency

Remittances in foreign currencies are made possible by BOI certification, which facilitates more seamless financial operations for global companies.

Repatriation of Profits

Entities holding a BOI certification are allowed to freely repatriate investment profits and funds.

Protection from Business Nationalization

Companies with the BOI certification are shielded from having their firm nationalized, protecting their operations and investments.

BOI Promotion Schemes for the Fintech Industry in Thailand

For a variety of tech industries that fall under Category 5 of BOI-promoted activities, the BOI provides promotion schemes. Among the well-known tech sectors in this category are:

Under Category 5.7, two distinct types of software industries are eligible for BOI promotion: 

• Embedded or High Value-Added Software 
• Enterprise Software and/or Digital Content

Category 5.8: E-Commerce

Category 5.9: Digital Services (Including fintech). Digital services encompass a wide range of offerings. It includes software platforms, managed services, digital architecture design, and various industry-specific fintech services like insurtech, regtech, medtech, agritech, etc.

Eligibility of Fintech Business for BOI Certification in Thailand

• To apply for BOI investment promotion, approval from Thailand’s Ministry of Digital Economy and Society is necessary.
• The hiring of digital experts is mandatory. Additionally, the project must have a financial expenditure of at least one million baht (approx. USD 28,000). However, this expenditure excludes fees for land and operating capital.
• The project must deliver digital services and have the mentions in the reports.
• Within two years of the start of full operations, projects that need investments of 10 million baht or more. Note that, this investment excludes land and working capital expenses. Additionally, it must receive ISO2000 certification or other quality standards certified by Thailand’s Ministry of Information and Communication Technology.
• The revenue for the promoted business will be derived from sales or services that are directly associated with the digital services firm that is being marketed.

Fintech Business Categories Eligible for BOI Certification

Due to their considerable strategic significance and ability to propel strong economic growth in the nation, the BOI actively promotes and supports investments in particular fintech sector segments. The following types of Fintech businesses are eligible for BOI promotions easily:

Peer-to-peer (P2P) Leding Platforms

The BOI promotes fintech companies that facilitate peer-to-peer lending. Promoting investments in P2P lending platforms helps to diversify Thailand’s financial environment. Additionally, it facilitates greater financial inclusion, as the BOI holds the responsibility to minimize regional disparity.

Digital Payment Platforms

Electronic wallets and digital payments are some of the fintech topics that the BOI pays particular attention to. The BOI’s incentive helps improve the convenience and accessibility of digital financial services for the Thai populace. Additionally, it fosters innovation in payment technologies.

Blockchain Technology

Blockchain technology adoption and use is another area that the BOI actively promotes within the fintech industry. BOI assists blockchain technology businesses focusing on identity verification, smart contracts, and supply chain management.

Insurance Technology or Insurtech

The BOI encourages investments in insurtech businesses because it acknowledges the revolutionary potential of technology in the insurance industry. The benefits of receiving support from the BOI can be numerous and include access to partnerships and investment, regulatory guidance specific to the insurtech industry’s difficulties, and the chance to work with well-established players in the insurance sector.

BOI Promotion & Registration Application for Fintech Business in Thailand?

To Apply for BOI Promotion and start fintech business in Thailand, you need to follow these steps:

A substantial time and effort commitment is necessary due to the intricate application process for the BOI certification. Getting approvals for hiring and business operations can be difficult, and even after establishment, meeting the operational requirements of the BOI can be difficult. Common obstacles to attaining and preserving compliance include:

• Drafting and submitting an effective feasibility study to the approvals committee
• Proving the importance of particular positions held by foreigners in management and staff
• Providing compelling evidence of the qualifications and experience of foreign workers
• Following Thai accounting and financial reporting regulations to the letter

Konrad Legal, the leading corporate law firm in Thailand, stands out among these complications as a highly-skilled partner to help with BOI certification in Thailand. Businesses may easily traverse the BOI Thailand application process, including completing the required paperwork, participating in crucial interviews, and upholding compliance duties with the extensive help of the Konrad Legal team. Fintech businesses that work with Konrad as a strategic partner may get past regulatory roadblocks like creating convincing feasibility studies, validating important responsibilities, and adhering to strict accounting regulations.
Get in touch with us right now to start your road toward success, growth, and innovation in Thailand’s thriving fintech sector. Please email us at officer@konradlegal.com and our team will get back to you within one Thai working day to help you start your fintech business in Thailand.