Best Business in Thailand in 2023 – ECommerce

 

Thailand offers e-commerce companies an optimal environment for growth due to the country’s expanding internet user base. The Thai e-commerce market currently values at US$3.5 billion and is will grow at a 13.2 percent annual pace to reach US$5.8 billion in 2022. Undoubtedly, e-commerce is going to be the best business in Thailand in 2023 in terms of customer acquisition and RoI.

More and more customers are choosing internet shopping over traditional retail. Thailand’s society is increasingly reliant on the Internet, especially as new technologies arise that are transforming delivery processes to consumers.

Both domestic and foreign businesses in the retail and service sectors are striving to comprehend the nature of digital channels. This is to take advantage of the potential online prospects in order to gain market share in Thailand. Thailand is the second-largest economy in Southeast Asia.

This guide intends to help you take advantage of e-commerce prospects in Thailand’s developing market which makes it the best business in Thailand. It gives a general overview of Thailand’s digital retail market today, identifies the influential figures on consumer behavior, and offers additional information to take into account before starting an online store or selling goods through the country’s already established online channels.

• Overview: Thai E-Commerce Industry
  • Current State of Ecommerce in Thailand
  • Ecommerce Landscape of Thailand
    • Consumer-to-Consumer (C2C) Ecommerce Platforms
    • Business to Consumer (B2C) Ecommerce Platforms
    • Business to Business (B2B) Ecommerce Platforms
• Growth-Drivers for Ecommerce Industry in Thailand
  • Active Involvement of Government in Thailand 4.0 Development
  • Internet-Savvy, Young, and Mobile-First Generation
  • The volume of Foreign Direct Investment in Thailand
• Opportunities in Ecommerce Industry in Thailand
  • Mobile and Electronics Product Categories
  • Vertical Ecommerce Play
  • Increasing Demand for Foreign Brands
• The Bottomline

Overview: Thai E-Commerce Industry

Current State of Ecommerce in Thailand

Thailand, Southeast Asia’s second-largest economy, has one of the highest rates of internet users in the area. The country has about 57 million internet users who are proficient in using digital technologies, mobile devices, and e-commerce.

Ecommerce Business Landscape of Thailand

Thailand’s e-commerce platforms are typically categorized into three groups:

Consumer-to-Consumer (C2C) Ecommerce Platforms

This business strategy makes it easier for people to buy or sell goods or services to one another. The classified ads in a newspaper, eBay, or Craigslist are examples of C2C. Once a discussion between a buyer and a seller starts, sellers post products online, but transactions often take place offline (unless the platform facilitates payments). C2C is frequently referred to as social commerce, such as transactions made on Facebook.

Popular examples in Thailand: Hipflat, Kaidee, and Weloveshopping. Thailand’s Hipflat is a C2C marketplace for real estate. Both agents and direct home buyers are eligible.

Business to Consumer (B2C) Ecommerce Platforms

The term “B2C business model” refers to an online purchase of goods or services made between a brand (a company) and a customer. The most well-liked and well-known sales model in use today is this one. Customers have high expectations for official brand websites, including round-the-clock customer service, a variety of payment choices, and accommodating return policies.

Popular examples in Thailand: Lazada and kiehls.co.th. 

Business to Business (B2B) Ecommerce Platforms

In Thailand, businesses still frequently do transactions with one another over the phone, like in the case of a secretary ordering printing paper in bulk.

However, due to the multi-layered complexity of traditional supply chains, platforms are now being created to streamline business-to-business interactions. Consumers expect the B2B experience to be similar to the B2C experience as they grow acclimated to it.

A popular example in Thailand: Officemate

Originally a stationery store in malls, OfficeMate now offers bulk purchases on its website, www.officemate.co.th, which also serves direct customers.

The government’s push for its digital “Thailand 4.0” strategy to match the worldwide change in consumer behavior towards online can also be credited with having an impact on the rise of online.

Both domestic and foreign enterprises, particularly Internet behemoths from China, are eager to launch e-commerce operations through new ventures or acquisitions in order to secure a significant position in Thailand’s expanding digital economy.

Growth-Drivers for Ecommerce Business in Thailand

Active Involvement of Government in Thailand 4.0 Development

To reorient and improve the nation’s economy away from one that is production-based toward one that is knowledge- and service-based, the Thai government introduced its “Thailand 4.0” economic model. Thailand wants to lead South East Asia’s digital hubs within the next ten years.

A fundamental element of this vision is that digital technology will be the engine of the nation’s economic expansion, strengthen the industrial sector, and enhance the quality of life for its people.

Internet-Savvy, Young, and Mobile-First Generation

In a nation of 69 million people, at least 48 million Thais use smartphones, 57 million are online, and 46 million use mobile devices to access social media.

Out of Thailand’s 69 million inhabitants, Millennials (also known as Gen Y) make up the majority of the population with an Internet penetration rate of 82%. (19 million). The majority cohort logs into the internet for 53.2 hours each week on average.

Only 28% of Thai customers use desktops or laptops to browse the internet, while 69% primarily use their cell phones.

The way Thai consumers explore reflects the country’s mobile-first economy. Approximately 15% of people use their smartphones to seek product information, compared to 7% who use PCs. The significance of mobile-first businesses and mobile-optimized websites is highlighted by this behavior.

The Volume of Foreign Direct Investment in Thailand

Thailand has attracted foreign investment due to its enormous market and e-commerce possibilities. Chinese internet behemoths like Alibaba and JD.com have made investments in Thailand during the past two years. JD.com invested $454 million in a joint venture with Central Group, Thailand’s largest retail conglomerate, while Alibaba invested USD 3.64 billion in Lazada in 2018 and USD 304 million in the first stage of the Eastern Economic Corridor (EEC).

Comparing the payment, logistics, fintech, and food and beverage industries, e-commerce has received the most foreign investment overall. 29 financing rounds in all were completed in 2017 alone.

Due to the rise in foreign interest in Thailand’s e-commerce industry, local businesses have been motivated to become more competitive, and more SMEs have been inspired to innovate in the fields of online commerce, fintech, and artificial intelligence (AI). More cooperative partnerships between offline wholesale businesses and internet businesses also came up as a result of the investment.

Ecommerce Business Opportunities in Thailand

Mobile and Electronics Product Categories

The most popular product category online in Thailand is mobile and gadgets. Thais are used to buying tiny electrical devices in conventional malls like MBK or Pantip Plaza, but more customers are choosing to buy these kinds of products online.

According to BrandIQ data, 14.7 million out of 60 million products on Lazada alone are featured in the mobile and electronics category.

Vertical Ecommerce Play

Numerous “horizontal e-commerce” websites that sell goods under numerous product categories, from household goods to fashion and car components, make up Southeast Asia’s e-commerce scene. These competitors include well-known names like Lazada, Shopee, 11street, Central, JD.com, etc., making it challenging for newcomers to compete.

Being a vertical e-commerce player at launch can be more cost-effective since the company can concentrate its marketing efforts on attracting a specific audience to the platform for a particular category. In addition, the business can spend a lot of money building a distinctive website identity rather than being generic to appeal to different groups.

By creating a social network and a sense of community, creating a brand community develops social hubs that encourage client loyalty. Additionally, vertical e-commerce fosters a sense of belonging and connection in customers, which promotes brand loyalty.

Increasing Demand for Foreign Brands

In all market segments, Thai consumers are more drawn to well-known international brands like Apple and Adidas than to local ones, according to a Y&R Thailand study.

Every time a new international brand debuts in Thailand, there is typically great fanfare, which sparks local interest. Thai customers camped out in front of storefronts whenever a well-known foreign brand opened, whether it be Krispy Kreme, Ben’s Cookies, or the H&M and collaborative design collections.

Over 100 high-end global brands have opened flagship stores in Thailand in the last few years.

The Bottomline

There is a steep YoY growth in some vital metrics that plays a significant role in the growth of the e-commerce industry. Primarily, these factors are:

• Number of Internet & Social Media Users
• Dependency of Netizens on Online Platforms for Shopping
• The increasing trust of Thai citizens in Online Payment Platforms
• Growth in Digital Marketing Platforms
• Increase in the comfort of Thai citizens in using smart devices and the internet
• Digital Transformation in all aspects of the Thai Economy

Moreover, the Board of Investment of Thailand is framing new incentive policies for investors willing to participate in the Digital Transformation of Thailand. Are you having a brilliant business idea to do so? Then share it with us!
For all types of assistance in business registration in Thailand, email us your requirements at officer@konradlegal.com. Book a free round of consultations today!

BOI Thailand Promotion – Why is it Mandatory for Foreign Investors?

 

“Benefits of Foreign Investors” and “Board of Investment (BOI) of Thailand” are pretty synonymous expressions. Due to the great advantages of Thailand as a business location, foreigners prefer Thailand to set up or expand their existing business in Thailand. On the other hand, BOI Thailand Promotion offers privileges and incentives for foreign investors to ease their operations in the kingdom.

Many foreign investors, both inside and outside of Asia, are quickly choosing Thailand as a place to invest. Many consider Thailand to be a business-friendly nation, with year-over-year growth anticipated to continue. Thailand has attracted a lot of foreign investment, and this trend is certain to continue. Before establishing a Thai company with 100% foreign ownership, there are numerous factors to take into account.

The BOI of Thailand is a company whose motto is to help foreign investors launch their businesses in the nation. The government is the owner of the BOI. The organization’s only purpose is to help entrepreneurs who are investors launch their businesses. Additionally, it supports the introduction of novel concepts, company growth, and technical improvements. They give investors the chance to investigate and take advantage of domestic and international investment opportunities. The BOI’s methods are advantageous to both the nation and the investor.

The basic logic is that foreign investors must seek BOI Thailand Promotion for the benefit and growth of their business in the kingdom. But questions like how, why, and when may traumatize your decision in this aspect. This article intends to clear all these contradictions and manipulations from your decision of starting your business in Thailand.

BOI THAILAND ANNOUNCEMENTS 2023

• What is the Board of Investment of Thailand?
• BOI Thailand Promotion Benefits for Foreign Investors
• Tax Benefits from BOI Thailand
  • Non-tax Benefits from BOI Thailand
  • Tax Incentives from BOI Thailand
    • Tax Exemptions
    • Import Duty Exemptions
  • Non-Tax Incentives from BOI Thailand
    • 100% Company Ownership for Foreign Investors
    • Simplified Visa & Work Permit Processing
    • Land Ownership Rights for Foreign Investors
• The Bottomline

What is the Board of Investment of Thailand?

In 1966, the Office of the Board of Investment was founded. It is a government agency that works under the Office of the Prime Minister and creates investment policies to aid in increasing foreign direct investment in Thailand. As a result, a BOI-promoted company can benefit greatly and receive numerous incentives, which can help entrepreneurs build prosperous businesses.

Additionally, the following are the main functions of BOI Thailand:

• Promoting investment possibilities in Thailand and abroad
• Technology advancement and innovation in Thailand
• Increasing Thailand’s economic growth

Their primary goal is to encourage investment through the provision of both tax and non-tax-based incentives. Additionally, part of their aim is to assist Thai investors who want to make investments abroad. Moreover, the BOI has served as Thailand’s primary public organization promoting foreign and domestic corporate investment for the past 50 years. Therefore, by contributing to balanced and sustainable economic growth in the nation, their goals are to improve Thai competitiveness and aid Thailand in avoiding the middle-income trap. Its primary duties and roles are to encourage direct investment.

BOI Thailand Promotion Benefits for Foreign Investors

As a new foreign investor in Thailand, you can avail of great tax and non-tax benefits from BOI Thailand. These benefits come in different scales on the basis of the following metrics:

1. Industry to which your business belongs
2. Type of Company you want to register in Thailand
3. Investment volume
4. Amount of benefit your business can bring to Thailand & its Citizens
5. Contribution of your business to the Thai GDP
6. Location of your business in Thailand

Depending upon the said parameters, your business can be eligible for tax and/or non-tax privileges from BOI Thailand.

Tax Benefits from BOI Thailand

• For a maximum of eight years, the corporation may be excused from paying taxes.
• Reduced corporation taxes will also be advantageous to the company.
• The majority of foreign companies and businesses that are likely to import machinery and raw materials may be subject to high import taxes. Businesses that submit a BOI application and receive approval are given the leverage to negotiate lower import duty payments.
• Costs associated with research and future advancements will also increase as a result of BOI promotion.
• Some manufacturing and export charges are waived for foreign businesses that register with the BOI.

Non-tax Benefits from BOI Thailand

• The possibility to acquire complete ownership of their business is provided to the foreign investor.
• They will have the chance to obtain work permits and visas thanks to the BOI promotion.
• Additionally, they will be given the chance to own land and property. Promotion by BOI has many advantages. Before registering for a BOI promotion, company owners must have a thorough understanding of a few vital issues.
  • The advantages of the campaign are intended for selective groups within your firm and are not intended to apply to everyone. For instance, a business that deals with both transportation and software might only be eligible for one BOI promotion. The investment promotion may not be used in the software area if it is offered for transportation.
  • As soon as they receive the promotion certificate, your company will begin to benefit from the investment promotion. All businesses that have been accepted for BOI promotion are issued a promotion certificate as proof of their approval.
  • The BOI will give you written notice of every advantage that accrues your business.

Tax Incentives from BOI Thailand

In Thailand, it is mandatory for all businesses to pay corporate income taxes. Taxes payments are typically due on annual basis. However, the amount depends on the size of the business as well as the industry in which it operates.

Tax Exemptions

For a period of eight years, businesses that have received a promotion from Thailand’s BOI are exempt from paying corporate income taxes. Different corporations may only receive a five-year exemption, while other companies may receive no exemption at all. Both the city in which the business is located and the industry is important factors.

The constraints may be greater or lesser than that. However, in some circumstances, there can be a decrease in the income tax rate by 50% of the whole investment. Depending on the type of business, this may be.

A 50% tax exemption is particularly advantageous for the corporation, and these enterprises would be free to operate their businesses in Thailand at very low costs.

If your company is planning to do business in a focus industry of BOI that is essential for investment, you may be eligible for up to 70% in corporate income tax deductions over a five-year period.

Companies are divided into groups based on a few criteria. Companies in the “A1” categories and those covered by “Section 8” typically receive a 100% exemption from corporate tax as well as a 100% exemption from corporate income tax.

Section A1 Companies that fall under this category need complete registration and BOI Approval. Only 120 days following the conclusion of the company’s financial cycle may this permission go into effect.

Import Duty Exemptions

Import duty exemptions are highly advantageous for businesses that deal with the export of raw materials and research. In those circumstances, import charges for the manufacture of machines and other raw materials won’t be levied against manufacturing firms with the goal of conducting research and development.

Non-Tax Incentives from BOI Thailand

There are some non-tax incentives that come with successfully registering and promoting your business with Thailand’s BOI. These incentives, as examples, include:

100% Company Ownership for Foreign Investors

Foreign investors who have not registered their firms with Thailand’s BOI are only permitted to own 49% of the company’s shares. However, if they do so, they will attain 100% ownership of the share. Three shareholders must be there to register a company.

Simplified Visa & Work Permit Processing

You can get visas and work permits by promoting your business at BOI. Visa and work permit applications and processing take a long time and are quite tedious. You will be switching back and forth between the ministry of labor and immigration if you don’t have a BOI registration. The registration, renewal, and extension of your visas and work permits are simpler if your business gets a BOI promotion. This includes your workers as well. You and your personnel don’t need to go to the Immigration Center to get visas. The application and processing of work permits also fall under this.

You and your team don’t need to go to the ministry of labor. With less stress, you can do everything simultaneously from one location. Typically, you can complete all of these tasks at the Bangkok one-stop service center. This clause also applies to your partner, kids, and family members. They will also receive the necessary permits and paperwork to live with you in Thailand.

Land Ownership Rights for Foreign Investors

Foreigners cannot own land in Thailand under Thai law. However, if a foreign company obtains BOI registration, it can hold land in Thailand. Section 27 of the Investment Promotion Act of 1977 makes this possible.

Additionally, companies with BOI promotion can acquire land in Thailand. However, the purpose of land acquisition must be for the construction of factories, offices, and staff housing. In accordance with the clause, the land must be sold within a year of the company’s closure.

The Bottomline

The Board of Investment of Thailand keeps on announcing new policies and enforces amendments for the benefit of foreign investors. Recently, BOI announced some new policies to enhance the level of cooperation of the Royal Thai Government with foreign investors. To know all about the recent BOI announcements, go through our previously published article.

However, to avail of the benefits of BOI, as a foreigner, you will need local Thai support. The major reasons behind this are as follows:

1. Proper understanding of the Siam Civil and Commercial Code
2. Knowledge of the Thai Corporate and Regulatory Obligations
3. Practical experience in Thai Accounting, Auditing, and Taxation policies
4. Communication in the Thai Language
5. Immigration and Work Permit for your overseas employees
6. Acquisition of Office, Warehouse, or Business Premises

There can be many other reasons as well that can vary depending upon the level of research and your skillset at the time of incorporating your BOI-promoted company in Thailand. But we are there for all. Email us your requirements at officer@konradlegal.com and book a free round of consultation to ease out your BOI Thailand Promotion Application process.

New Incentive Plan of BOI Thailand for Investors

 

The Board of Investment (BOI) Thailand is a pinnacle organization in the kingdom supporting and uplifting investors, be they, Thai or foreigners. In this process, the BOI comes up with new policies, investment opportunities, and amendments that can benefit existing businesses. In the stretch of continuity of this investor-friendly journey, New Incentive Plan is announced by BOI Thailand for Investors.

The Thailand Board of Investment (BOI) recently announced new incentive packages. This is a follow-up to its new five-year strategy, which was unveiled last month. These incentive packages include the following:

• A set of special privileges to support expansion by long-standing investors
• A comprehensive relocation program covering headquarters and research & manufacturing facilities, and
• Package for investment in sustainable activities like the production of hydrogen vehicles and the development of biofuels.

This article intends to explain all through the new plan so that it becomes easy for you to focus on your new business plan in Thailand.

• The Announcement
  • Retention & Expansion Program
  • Relocation Program
  • Creation of New Industry Categories
  • Advanced Technology Sectors
  • New Economic Corridors
  • Ease of Doing Business
• The Bottomline

The Announcement

The BOI board met on November 04, 2022, to approve the measures. The measures include premium incentives for high-tech and innovative industries. Primary industries of focus are biotech, nanotech, and advanced materials. The new announcement support measures for the development of novel foods. Additionally, the creation of new economic corridors or SEZs in four regions of Thailand is something that it focused on. The new policies cover the implementation of a unique mechanism to enhance the ease the doing business in Thailand.

According to the BOI’s Secretary General, Mr. Narit Therdsteerasukdi, the strategy aims to upgrade the industrial capacity with a focus on high technology and innovation. Additionally, it aims to build the industrial base of the future. Nevertheless, this is to make Thailand the center of international business and the technology hub of the region.

BOI wants to emphasize Thailand’s capabilities to help address some concerns like food security. It also aims to explore renewable energy sources and enhance supply chain operations.

The 2023–2027 Investment Promotion Strategy, aims to assist in Thailand’s economic restructuring. Additionally, it is also to ensure that the nation is progressive, competitive, and open to all after Covid–19. To present Thailand as a regional hub for commerce, trade, and logistics, the plan aims to promote technological advancement. Additionally, it supports the transition to green and smart industries, talent development, as well as creativity, and innovation. The bio-circular-green (BCG) sector, the EV supply chain, electronics manufacturing, the digital economy, and creative industries are the other five important areas in the strategy as priority industries.

According to the special packages released on November 04, 2022, the following are specifics of the approved measures and additional benefits for investors.

Retention & Expansion Program

With approval for a new project or expansion project with an investment of 500 million baht or more, long-standing investors or businesses over the previous 15 years have been granted investment benefits for at least three projects totaling at least 10 billion baht (roughly 265 million US dollars)—will be given special incentives, such as an additional corporate income tax (CIT) exemption for up to three years or a 50% CIT reduction. This is the first time the BOI has offered a package to thank investors who have shown faith in Thailand and actively contributed to the long-term industrial growth of our nation, according to Mr. Narit.

Relocation Program

Companies moving all of their operations, including their regional headquarters, research and development (R&D) centers, and manufacturing facilities to Thailand will be eligible for an additional CIT exemption for 5 years under the relocation program. However, according to the industry, businesses moving their manufacturing and regional headquarters will earn an additional 3 years of CIT exemption, whereas businesses moving their manufacturing and R&D center will receive an additional 1 to 5 years of CIT exemption. Only revenue from the manufacturing activities that have been relocated is eligible for any CIT exemptions.

Creation of New Industry Categories

The board approved the formation of new supported industry sectors, particularly sustainable activities, that would receive specific incentives in order to hasten the transition to the new economy. Note that, the creation of electric vehicle (EV) battery switching stations, the production of hydrogen vehicles, novel foods, organic foods, etc. are some of the new categories. In terms of renewable energy, the newly promoted businesses kinds include those that produce hydrogen and its related products, such as green ammonia, as well as those that produce power and steam using hydrogen.

Advanced Technology Sectors

Investments in upstream high-tech industries including biotech, nanotech, and advanced materials that involve technology transfer and collaboration with Thailand’s higher education institutions and research organizations will receive premium incentives. According to the BOI’s nomenclature, these projects, which are categorized as “A1+,” will be eligible for 10 to 13 years of CIT exemption without a cap, depending on the activity. Wafer fabrication has been moved up to this category and will now qualify for a 13-year CIT exemption, as opposed to the prior 10-year exemption.

New Economic Corridors

The board also approved the designation of four areas of Thailand, totaling 16 provinces, as special investment zones for new economic corridors. Numerous incentives are offered for investments in these sectors. The four regions, which are the Northern Economic Corridor, North-Eastern Economic Corridor, Central-Western Economic Corridor, and Southern Economic Corridor, will expand the current Eastern Economic Corridor, a region of industrial and high-tech development.

Ease of Doing Business

The board also approved the creation of a Sub-Committee on the Resolution of Obstacles and Facilitation of Investment, which will act as a special mechanism to further increase the ease of doing business by addressing particular pain points raised by investors. This committee will work in conjunction with the Prime Minister’s Office and other state agencies.

Beginning in January 2023, the new incentives will be in place.

The Bottomline

If you have planned to start your business in Thailand, go for the BOI advantages. If you are a foreign investor, you can easily get the following privileges and benefits:

1. Permission for foreign investors to own land
2. Permission to operate under 100% foreign ownership
3. Exemption from work permit and visa rules
4. Exemption of import duty on machinery
5. Corporate income tax exemption for up to 8 years
6. Deduction of Transportation, Electricity, and Water Costs
7. Deduction of the Project’s Infrastructure Installation
8. Exemption of import duty on raw or essential materials used in the manufacturing of export products for 5 years
9. Permission for foreign technicians, experts, and their spouses or dependents to work and stay in Thailand

There are various legal, documental, and financial requirements to get BOI approval for your business in Thailand. But the thing that is more pristinely necessary is local legal support. It won’t be possible for a foreigner to move around and meet and communicate with authorities, where language is a great barrier. 

Although English is the official business language in Thailand, yet, all people here may not be comfortable with that. Additionally, you need to have local guidance on legal and taxation requirements.

Therefore, so that your business idea gets noticed by the BOI and you get easy approval from there, let us help you. Email us your idea and requirements at officer@konradlegal.com and book your free round of consultation with our team of experts. So, reach out to us today to avail all the benefits that BOI Thailand has for investors.

How to Get a Company Registration Certificate in Thailand?

 

Your legal right to conduct business in Thailand is confirmed by your Company Registration Certificate in Thailand. However, you qualify to receive a certificate in Thailand following successful registration. There is a significant growth in the volume of Thai business registrations due to the country’s expanding economy and advantageous geographic location. Moreover, due to government’s support and incentives, foreign businessmen and investors prefer this country. Additionally, Thailand is at an excellent location in Asia, has effective policies, and enjoys social and political stability.

You must complete the registration process wherever you choose to start a business. And, Thailand is no exception. The main objective is constant – submitting the required paperwork, going through the process, and registering. Moreover, Thailand does not charge a very high registration fee for businesses. With the right advice and consulting, you can quickly register your business. Once registered, you are eligible for the services the Thai government offers to businesses.

Why You Will Need Company Registration Certificate in Thailand?

If your company is operating in Thailand, the public must be able to reach you. Therefore, you must let everyone know that you are operating legally in Thailand. Your legal registration to conduct business in Thailand will be attested to by the certificate. Additionally, your Company Registration Certificate will be the only acceptable proof of the following details of your company in Thailand:

1. Date of registration of your company in Thailand
2. Company name and address
3. Company registration number
4. Type of business your company can conduct in Thailand

Furthermore, your Company Registration Certificate in Thailand, as stated earlier, is the most vital evidence of the existence of your business in the kingdom. Additionally, you will need this certificate to apply for the following documents and processes for your business:

1. VAT Registration Certificate
2. ISO Certification
3. Foreign Business License for a Representative or Branch Office
4. Corporate Income Tax Registration
5. Opening a Corporate Bank Account

Now hopefully, you can understand the importance of Company Registration Certificate in Thailand. It is all you need to reinforce your new business in Thailand with all types of documentation and licensing.

How to Get a Company Registration Certificate in Thailand?

The only method to get a Company Registration Certificate in Thailand is to proceed for company registration in Thailand. You will have to register your business in Thailand in accordance with the Foreign Business Act, if you are a foreigner. Let us briefly explain to you the process of Company Registration in Thailand.

You have to follow the nation-specific procedures if you want to start a business in your home country or any other foreign country. It differs everywhere. However, there are some nations where the procedure is the same. The most important details to be aware of are generally as follows:

• Preparing company name  
• Finding out if the name is available  
• Collect all relevant documents  
• Fill up form in designated offices  
• Submit all the forms and documents to the designated offices 

After you are through all the mentioned steps, you will be able to operate in Thailand. Henceforth, it is now that you will get your Company Registration Certificate in Thailand. The certificate will hold your business registration number through which the government will monitor your company. 

In due course of your business operation in Thailand, if you ever have to change your company’s name and/or address, you will have to visit the Department of Business Development for this. Henceforth, they will verify the authenticity of the reason for the change you are requesting for. Furthermore, they certify the change. However, you must ensure that your Company Registration Certificate gets updated with the new name and/or address.

Process of Company Registration in Thailand

Get the comprehensive guide for Company Registration in Thailand by clicking this line. However, we are briefing you with the process as well.

In Thailand, as a foreigner, you are legally permitted to have a company of the following structures:

• A Private or Public Limited Company 
• A Partnership / Limited Thai Partnership 
• Thai Representative Office or Branch Office

Although there are some technical differences in setting up the companies in the said structures, yet the basic requirements are the same. Therefore, you will have to go through the following steps to register any type of business structure in Thailand:

• Company name search  
• Registration of the company name  
• Prepare and submission of Memorandum of Association  
• Prepare and submission of Article of Association  
• Fixing a Statutory Meeting  
• Submission of necessary documents for company registration  
• Registering for VAT or Tax 

The Bottomline

The formation of a Thai Limited Company is the most advantageous and preferred option for starting a new foreign-owned company in Thailand. Primarily, this is due to the following vital reasons:

• There are policies to protect foreign investment
• Easy Process of Business Registration that can be accomplished in few days
• The process strongly supports foreign work permits.

A BOI Company is the second most common business setup for foreigners in Thailand. The Thai government actively promotes it and offers significant benefits, including tax privileges, 100% foreign ownership, land ownership, and many other things.

Therefore, to avail the benefits of the proactive and investor friendly policies of the Thai Board of Investment or the Department of Business Development, you must consult a Thai Business Consultant. Additionally, you can email us your business idea and requirements at officer@konradlegal.com.