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.
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.
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:
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.
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.
To start with, you must know that the Memorandum of Association (MOA) for Company Registration in Thailand differs from the Articles of Association (AOA) greatly. We will surely explain the difference in this article, before which you must know about MOA. This will help you understand the difference better and proceed with the application process for Company Registration in Thailand properly.
What is the Memorandum of Association (MOA) for Company Registration in Thailand?
A Memorandum of Association (MOA) is a legal document that establishes a company’s fundamental principles and objectives at incorporation. It is a requirement by Thai law that all limited companies must have an MOA.
The MOA typically includes the following information:
Name of the Company
Business Objectives of the Company
Company’s registered address
Company’s authorized capital
The number of shares that the company has the right to issue
The types of shares that the company has the authorization to issue
The rights and privileges of each type of share
The names and addresses of the company’s directors and shareholders
The MOA is a very important document for company registration in Thailand. Correct and accurate drafting of the MOA is important to avoid any problems with the Thai authorities. If you need help drafting an MOA, you should consult with a reliable corporate law firm in Thailand.
How Memorandum of Association (MOA) is different from Articles of Association (AOA) in Thailand?
MOA holds the company’s essential information and serves as the company’s constitution. Whereas, the content of an AOA constitutes all internal management rules and regulations.
The MOA describes the company’s powers and purposes, while, AOA defines its rules. This is the primary distinction between the two documents.
Should there be any discrepancy regarding a provision between the Memorandum and the Articles of Incorporation, the Memorandum of Association will take precedence.
MOA outlines the company’s goals and authority. On the other hand, AOA states the company’s rules and regulations.
While changes to the AOA can only be made by a Special Resolution (SR) at the Annual General Meeting, changes to the MOA require the consent of the central government beforehand and must be passed by a special resolution at the meeting (AGM).
The MOA must be filed with the Registrar of Companies at the time of incorporation. While voluntary registration is an option, the company may not comply with these standards for AOA.
Overall, the MOA defines the external relations and objectives of the company, while the AOA focuses on the internal management and operation of the company. Both documents are essential for registering and governing a company in Thailand, and they must comply with the legal requirements of Thai company law. It’s important to consult with legal professionals or authorities in Thailand to ensure compliance with the specific regulations in the country.
Requirements for Memorandum of Association in Thailand
In general, companies in Thailand are primarily of two types – a Private Limited Company and a Public Limited Company. Along with the difference in the names, there is a difference in the process of their formation as well as the involved MOA. For your convenience, we have clearly defined the contents of MOA in both cases below:
A Private Limited Company’s MOA must hold the following details:
Name of the company
Location of the company’s registered office
Objectives of the company
Division of the Registered capital must be equal for each share with the same value
Name, address, age, occupation, and number of shares of the shareholders
Name, address, and age of two witnesses
The MOA for a Public Limited Company must include the following:
Company name
The purpose of the company is to offer shares for sale to the public
The objective of the company
Registered capital, including the type, number, and value of shares
The province where the company will be located
Names, dates of birth, nationalities, and addresses of the promoters and the numbers of shares for which each of them has subscribed
You have to submit the application for filing the MOA with a stamp duty of THB 200 to the Department of Business Development. Please note that this stamp duty is subject to change as per the announcement of the DBD or Revenue Department of Thailand.
Furthermore, to submit your MOA to DBD, you have to enclose the same with the Boj. 2 form which you can download from the link below:
Are you planning to start a business in Thailand? If you are from Thailand, then, apart from the requirement of a Thai partner, as in the case of foreign investors, the entire process of company registration is the same for all. Just like company name reservation, drafting of MoA/AoA/MoU, and tax registration, Statutory Meeting is very crucial for Company Registration in Thailand.
Name Reservation for Company Registration in Thailand is the first stage of the process, you have to convene a Statutory Meeting just after this on finalization of the Memorandum of Association (MoA) or AoA or MoU, as applicable. This article aims to guide you throughout the process of convening the Statutory Meeting to register your company in Thailand.
What is a Statutory Meeting for Company Registration in Thailand?
A Statutory Meeting is a meeting that must be held within 30 days of the incorporation of a company in Thailand. The meeting must be attended by at least two-thirds of the directors of the company, and the following items must be discussed and approved:
Appointment of the first auditor of the company
Adoption of the initial financial statements of the company
Distribution of the initial profits of the company
You have to file the minutes of the Statutory Meeting with the Department of Business Development within 15 days of the meeting on a mandate.
Why Statutory Meetings are Important for Company Registration in Thailand?
A Statutory Meeting, also known as the First Annual General Meeting, is an important step in the process of registering a company in Thailand. Here are some reasons why the Statutory Meeting is important for company registration in Thailand:
It is a Legal Requirement!
The Statutory Meeting is a mandatory requirement under Thai company law. You have to convene this within one month from the date of company registration for private limited companies and within three months for public limited companies. Failure to hold this meeting within the prescribed time frame can result in penalties or consequences for the company’s legal status.
Ensures the Compliance of Key Documents
During the Statutory Meeting, shareholders must approve important documents and information, such as the company’s Articles of Association, the appointment of directors and auditors, and the capital structure. Nonetheless, this ensures that the company’s foundational documents are in order and compliant with Thai corporate regulations.
Confirms Company Ownership Structure
The Statutory Meeting allows the company to confirm the identity and shareholdings of its initial shareholders. This helps maintain transparency and accountability in the company’s ownership structure.
Establish the Financial Reporting Structure & Operations of the Company
The company’s financial statements, including the balance sheet and income statement, are presented and approved during the Statutory Meeting. Shareholders have the opportunity to review the company’s financial performance and its financial health. This provides transparency and accountability to shareholders and allows them to assess the company’s progress. The meeting also helps in ascertaining whether your financial reporting complies with Thai Financial Reporting Standards or not.
What Happens in a Statutory Meeting for Company Registration in Thailand?
Please note that a Statutory Meeting is possible only after the finalization of shareholders or the share structure. Once done, the following are the major activities conducted during a statutory meeting:
Acceptance of the Association’s Articles (by-laws).
Approval of all agreements made and costs paid by the promoters to publicize the business.
Deciding on the compensation, if any, applicable for the promoters.
Determining the type and quantity of preference rights that will accrue to them, as well as the issuance of preference shares, if any.
Determining the number of common shares or preference shares for distribution as fully or partially paid-up, if not in cash, and the maximum level at which such shares will be deemed paid-up.
Appointing the initial auditor(s) and director(s), as well as defining each director’s authority.
After completing the statutory meeting successfully, the promoters must hand over the businesses and company operations to the directors.
Consult a Corporate Law Firm for a Statutory Meeting in Thailand
It is always wise to have corporate law support by your side while conveying the Statutory Meeting. Although you need support from the beginning, yet, your association with a corporate law firm in Thailand can help you in the following ways:
Easing the Process of Company Name reservation in Thailand
Drafting the Memorandum of Association, Shareholder’s Agreement, Article of Association
Convenience in Company Registration Applications at the Department of Business Development of Thailand
Drafting of Appointment Letters for Directors, Shareholders (if required) and Auditors
Proper documentation of the Minutes of the Statutory Meeting
Additionally, if the corporate law firm has expertise in accounting, taxation, and payroll management, you can get extra benefits. Such firms can finalize your accounting and financial reporting structure. Furthermore, they can do your daily accounting by relieving you from hiring an accounting, taxation, or payroll management team. To avail of all the benefits, email us your requirements at officer@konradlegal.com. Our team will get back to you within one Thai working day.
