How to hire a Business Law Firm in Thailand?

As Thailand solidifies itself as a Southeast Asian business and investment hub, entrepreneurs, and companies alike must navigate its intricate legal landscape. To ensure adherence to laws, mitigate potential risks, and facilitate seamless operations, choosing a trusted business law firm in Thailand is vital. In this article, we delve into the critical factors businesses should consider when selecting a legal partner in Thailand.

Before you move into searching for a trustworthy business law firm in Thailand, you must be ready with your homework. This means, that you must know what exactly you want to do in Thailand. As a leading corporate law firm in Thailand for more than a decade, we often meet clients who are confused about their pristine requirements. You must understand that the level of compliance necessary to do business in a foreign land is very different from that in your country.

Ask yourself whether you are looking for assistance with company formation in Thailand, contract drafting, intellectual property protection, or litigation. Clarifying your requirements will help narrow down your search and find a law firm with the expertise to meet your needs. 

Based on your requirements, you must consult with a law firm of the following categories:

Corporate law firms: These are law firms catering to corporations that provide expert counsel on legal matters. These firms assist businesses throughout their lifecycle, from the initial setup to contract negotiations and dispute resolution.

Intellectual property law firms: These firms specialize in providing counsel to businesses on intellectual property matters, encompassing trademarks, copyrights, and patents. They assist businesses in safeguarding their intellectual property and upholding their intellectual property rights.

Family law firms: Family law firms focus on offering legal advice and guidance to individuals in various aspects of family law. These matters may include divorce, child custody, child support, and other family-related legal issues. These law firms ensure the protection of client’s rights and assist them in reaching satisfactory resolutions within the framework of the law.

Litigation law firms: Firms specializing in litigation law represent clients in court proceedings. These firms assist clients in resolving various legal disputes, including business conflicts, personal injury cases, and criminal matters.

Fortunately, if you are reading this article, you may get all these services in one place. Contact the leading business law firm in Thailand that holds multiple specializations for local as well as global investors in Thailand.

If not us, while looking for a corporate or business law firm in Thailand, ensure that your selection process undergoes the following stages;

Expertise and Specialization Analysis

When evaluating law firms, consider their expertise and specialization in business law. Look for firms with a proven track record in corporate law, commercial transactions, regulatory compliance, and other relevant areas. A firm with specialized knowledge and experience in your industry can provide tailored legal solutions to address your unique challenges and opportunities.

Check Reputation and Experience

Research the reputation and experience of potential law firms in Thailand. Look for firms with a solid reputation for professionalism, integrity, and successful outcomes. Consider factors such as the firm’s tenure in the industry, client testimonials, case studies, and awards or recognitions received.

Ensure they have Local Knowledge and Connections

Choose a law firm with a deep understanding of the local legal system, regulations, and business practices in Thailand. A firm with local knowledge and connections can navigate complex legal issues more effectively and provide strategic advice tailored to the Thai market. Additionally, a firm with a network of contacts in government agencies, industry associations, and other key stakeholders can facilitate smoother business operations and transactions.

Ease of Communication and Accessibility

Effective communication is crucial when working with a law firm. Evaluate the firm’s communication channels, responsiveness, and accessibility. Choose a firm that values clear and timely communication, understands your business goals, and keeps you informed throughout the legal process. Accessibility to key personnel, such as partners or senior attorneys, is also essential for building a strong client-lawyer relationship.

Compare Fee Structure and Check Transparency

Discuss the fee structure and billing practices with potential law firms upfront. Transparency regarding fees, billing rates, and payment terms is essential to avoid surprises and ensure a clear understanding of costs. Consider whether the firm offers alternative fee arrangements, such as fixed fees or capped fees, that align with your budget and preferences.

Personal Chemistry and Fit

Lastly, consider the personal chemistry and fit between your team and the law firm. Building a strong working relationship based on trust, mutual respect, and open communication is crucial for a successful partnership. Schedule initial consultations or meetings with potential law firms to assess compatibility and ensure a good fit for your business needs.

Selecting a reliable business law firm in Thailand is a critical decision that can significantly impact your business’s success and longevity. By carefully evaluating factors such as expertise, reputation, local knowledge, communication, and fit, you can choose a legal partner who understands your business objectives and helps you navigate the complexities of the Thai legal landscape with confidence.

To get an all-round consultation on starting a business in Thailand, email us at officer@konradlegal.com for full support and assistance on the following:

• Drafting MOA, MOU, AOA, and Partnership Agreements
• Executing Power of Attorneys
• Translation and Notary Services
• Company Registration Process including Board of Investment Promotions
• Bookkeeping, Accounting, Tax, and Payroll support post your company incorporation

BOI Thailand Focus on New Industries to Promote Foreign Direct Investment

 

The Board of Investment (BOI) of Thailand is one of the pinnacle organizations that focuses greatly on easing out the process of business registration and operations for global investors in Thailand. If you have been researching the global business ecosystem of Thailand for a long, you must have known about this by now. However, if you have just started on this, let us tell you for sure that there is a great benefit that foreign investors can gain from BOI Thailand. The non-exhaustive list of the benefits is as follows:

• Investment Incentives with almost 100% deduction on corporate income tax of the investment value

• Tax Incentives in the form of corporate income tax exemption for a period of up to 13 years from the year of incorporation

• Land or property ownership permissions

• Provision of up to 100% foreign ownership of Thai business

• Higher level of freedom and authority to remit foreign currency and bring in foreign skilled workers in Thailand

Aren’t these privileges enough to encourage global investors to start a business in Thailand?

But you will be more pleased to know that there are various other additional incentives for foreign investors based on the industry in which they are planning to do business. For convenience, we have listed some of the primary industries that BOI Thailand prefers to promote (Click to get the details):

Firstly, you must know why BOI Thailand Promotions is Mandatory for Foreign Investors.

Henceforth, deciding upon the type of business you are planning to conduct, the following are the respective benefits associated with each:

• Privileges from BOI Thailand for Businesses in Bio-Circular-Green Economy

• BOI Thailand Benefits for Businesses in the Medical and Healthcare Industry

• BOI Incentives for Startup Businesses in the Digital Economy

Apart from these, there are vivid sets of tax and non-tax incentives relevant to other sectors like agriculture and poultry, the electrical and electronics industry, manufacturing businesses, and the tourism industry. Subscribe to our newsletter on BOI Thailand Benefits to get the recent BOI updates on the respective industries and businesses.

Now you must be wondering why BOI Thailand is so keen on facilitating business registration and operations for foreign investors in Thailand. The primary reason is to promote the growth of foreign direct investment and take the nation forward in its target group of industries.

To determine its target industries and set of business activities, BOI Thailand revises its policies frequently with an investor-friendly approach. This article intends to share with you the latest updates on the BOI Thailand policies to promote foreign businesses and facilitate the same for global investors.

5 Key Agendas of BOI Thailand Advancing Towards Transformation and Development

Agenda 1: Green Transformation

This agenda endorses policy targets of Carbon Neutrality by 2050 and Net Zero Emission by 2065. Additionally, it supports carbon credit management.

Agenda 2: Development of Technology

This agenda aims to support 1,000 Innovation Driven Enterprises (IDES) with an annual revenue of 1 billion baht providing the following benefits:

• Promote commercializing of research and innovations.

• Encourage the establishment of R&D centers in Thailand.

• Attract leading foreign incubators/VCs

Additionally, BOI Thailand supports startups involved in deep technology research in the target segment.

Agenda 3: Attract and Develop Talent

This agenda aims to make Thailand grow to be a regional talent hub. To facilitate the same, BOI Thailand plans to do the following:

• Attract highly skilled professionals in the targeted industries to work in Thailand.

• Support Human Resources Development in Thailand.

Agenda 4: Prioritize Cluster-based Investment

This agenda aims to decentralize investments and distribute growth based on local potentials across the country. To meet this target, BOI aims to develop industrial zones and stimulate employment in regions with high labor availability and low income per capita.

Agenda 5: Promote Ease of Investment

Through this agenda, BOI intends to position Thailand as the Trade & Investment Gateway for the ASEAN Group of Nations. To achieve this, BOI has all plans in place to streamline regulations and facilitate investors' services to attract more investment.

These 5 key agendas raise the need to identify the appropriate industries that can contribute strategically to the fulfillment of the goals.

5 Strategic Industries on BOI Radar to Drive Foreign Direct Investment in Thailand

Bio Circular Green or BCG Economy

Focus on this industry aims to place Thailand as ASEAN's "BCG Capital". To facilitate this business group, BOI Thailand plans to extend the following benefits to foreign investors:

• Promote investments in Biocomplex, the Economic Corridors in the four regions. 

• Expand the community and society development measures to cover the community forest management and PM 2.5 reduction.

Automotive Industry with a special focus on Electric Vehicles

Thailand aims to develop itself as a Premier Global Automotive Manufacturing Center. To achieve this goal, BOI Thailand is all set to extend the following supports:

• Promote a complete EV production ecosystem

• Support the established automakers in transitioning to EVs and advanced technologies to reduce CO2 emissions.

• Assist the traditional auto-part makers in transitioning to new technologies or industries.

• Promote the management of used EV batteries.

Electronics Industry for Upstream and Smart Electronics

Thailand is gradually evolving as a Smart Electronics Manufacturing Hub in the ASEAN region. To establish this presence throughout the APAC regions, BOI Thailand aims the development of the Upstream Electronics Industry in Thailand.

To achieve this result, BOI Thailand facilitates promotions for investment in the entire supply chain of the electronics industry, including upstream, midstream, and downstream.

Digital & Creative Economy

In this segment, BOI Thailand aims to achieve the following goals:

• Transforming into ASEAN's Digital and Creative Center.

• Attracting investment in hyper-scale data centers and cloud services

• Promote a fully integrated digital industry

• Focus on promoting Thailand's high-potential creative industry.

Regional Headquarters & International Business Center

As a gateway to Southeast Asia, now is the perfect time to position Thailand as an International Business Hub. Focusing on this, BOI Thailand extends business facilitations and foreign investment promotions targeting the following:

• Continuously attract more target companies to establish RHQs in Thailand.

• Collaborate with related agencies in establishing a one-stop service for advising and facilitating the establishment of RHQs and expatriates living in Thailand.

• Upgrade the HQ Biz Portal.

Now what should be our Step for BOI Thailand Promotions?

Now that you have the latest updates on the agenda and industries on which the Board of Investment of Thailand is focusing, the following things must have been clear:

1. Whether the business you are planning is eligible for BOI promotion or not.

2. Whether there is a need to modify your business pattern to fall in the promotion slab of BOI.

3. Whether the benefit BOI is committing to extend will be helpful for your business or not.

There may be many other “whethers” that might have changed or affirmed their perspectives in your mind. But, some more questions are still unanswered like the following:

 

1. Are these benefits applicable to all global investors and are you eligible to apply for BOI Thailand promotions?

2. What are the steps of getting a BOI Thailand Promotions Certificate?

3. What to do before and after registering your BOI Company in Thailand?

To get answers to such or more complicated questions, you must consult with a leading corporate law firm in Thailand with experience in BOI Company Registration. 

For direct support, feel free to email us at officer@konradlegal.com.

Company Registration for Foreign Investors in Thailand in 2024

 

Thailand is rapidly growing to be a hub of global investors. Foreign Direct Investment in Thailand increased by 50409.04 THB Million in the third quarter of 2023. This indicates the tenacity of foreign investors in exploring business opportunities and going for their company registration in Thailand, which will continue in 2024 as well.

Are you one of such investors and planning to establish or expand your business empire in Thailand? Then this article will guide you throughout the process of company registration in Thailand in 2024 illuminating the crucial points of legal and statutory compliance.

What makes Thailand favorable for Foreign Investors in 2024?

For a long time, Thailand has been recognized as a desirable business destination because of its strategic location in Southeast Asia. It serves as a gateway to other markets in the region and has a well-connected transportation infrastructure.

In addition, the startup and tech industry in Thailand is booming, with large corporations establishing accelerators to drive growth in various sectors such as e-commerce, medical technology, and financial technology. The country also offers ease of doing business, a vibrant community of startups and digital businesses, and the necessary infrastructure for company growth.

Additionally, there are certain Board of Investment announcements made in 2023 that will surely make the process of company registration in Thailand easy for foreign investors in 2024. Click the image below the learn about them from our published article –

What should I consider when starting a company in Thailand?

Before launching a business in Thailand, it is essential to identify the most appropriate form of company for your undertaking.

Thai Limited Company

A Thai Limited Company is the most popular choice for international investors.

Under the Thai Civil and Commercial Code, companies can be 100% foreign-owned, depending on the type of business.

The Foreign Business Act (FBA) regulates foreign investment to safeguard Thai businesses. The FBA specifies which industries are open to foreign investment and what conditions they must follow.

For roughly 50 types of businesses, such as services and consulting, foreign companies cannot own more than 49.99% unless they obtain a Foreign Business License or a BOI promotion, which allows 100% foreign ownership.

Therefore, in these cases, they will need a Thai partner to hold the majority stake.

Board of Investment (BOI) Promotion

It is highly recommended to get a Board of Investment (BOI) certification when starting a company in Thailand. The primary purpose of the BOI, a government agency, is to attract foreign investment by providing unique advantages and benefits that are not available to regular businesses. These benefits include 100% foreign ownership, tax breaks, simplified visa procedures, and other perks.

A BOI certification can significantly speed up an entrepreneur’s entry into the Thai market and create a favorable climate for doing business. However, BOI certifications are only available for certain business activities.

Understanding Legal Requirements

Complying with the legal requirements is essential to starting a business in Thailand. Here are some key points to consider:

FOREIGN BUSINESS ACT

Familiarize yourself with Thailand’s Foreign Business Act, which outlines activities foreign companies cannot conduct. The FBA restricts foreigners or foreign-owned companies from undertaking over 50 categories of business activities in Thailand.

For more information on the Foreign Business Act of Thailand, please click here.

Learn about Thailand’s Foreign Business Act, which lists the activities foreign companies are prohibited from conducting. The FBA restricts foreigners or foreign-owned companies from undertaking over 50 categories of business activities in Thailand.

For more information, please read our blog post on the subject here.

THAI COMPANY REGISTRATION

Starting a business in Thailand requires you to register your company. This is a crucial step, and there are a few things you need to do to complete the process.

First, you will need to reserve a company name. You can do this through the Department of Business Development (DBD). Once you have reserved a name, you will need to prepare the necessary documents. These include the Memorandum of Association (MOA) and the list of shareholders.

The MOA is a legal document that outlines the structure and operations of your company. It includes information such as the company’s name, address, purpose, and capital structure. The list of shareholders is a document that lists the names and contact information of all of the shareholders in your company.

Once you have prepared the necessary documents, you can submit them to the DBD for registration. The DBD will review your documents and, on approval, will issue a certificate of incorporation. This certificate is proof that your company holds official registration and can legally operate in Thailand.

WORK PERMITS AND VISAS

Foreigners working or intending to work in Thailand must have the proper work permits and visa type.

It is important to note that Thailand has a broad definition of work and employment, which may or may not relate directly to revenue or income. For example, a foreigner can be a shareholder and/or a company director and not require a work permit. However, if they do something such as sign a document on behalf of the company, this will be considered work, and they must have a work permit.

To work in Thailand, you must apply for a Non-Immigrant ‘B’ or Business Visa and apply for a work permit upon entering Thailand.

PAID-UP CAPITAL AND BANK ACCOUNT

To legally work in Thailand, you may need to meet a minimum paid-up capital requirement. Opening a bank account with a commercial bank is also necessary.

What is the Process to Register a Business in Thailand?

Here is a breakdown of the process of registering your business in Thailand, which involves several steps. Go through our 10-point checklist that comprehensively covers you through the process of company registration in Thailand in 2024 –

How can Konrad Legal help?

For more information about how to start your business in Thailand in 2024, 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. For best results, email 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.