How can Australians Register Company in Thailand?

 

Thailand is fast becoming a rich northern frontier for Australian business. Additionally, it is a commanding gateway to the region’s economic powerhouses India and China. Thailand also connects well with Indochina and the Greater Mekong sub-region. So, this article aims to explain the process of how Australians can set up a company in Thailand in a hassle-free way.

Please note that Thailand ranks among the top 10 most attractive countries in the region for investment for over the last three to five years. Moreover, there are research reports demonstrating the reassurance of foreign investors by the abundance of suitable suppliers, raw materials, and development of infrastructure in Thailand.

Thailand hosts more than 300 Australian companies. Furthermore, these companies generate a two-way Thai-Australian trade revenue of over $19 billion annually, with great expansion and growth opportunities. Additionally, Australian investors are also accessing a range of additional benefits and protections under the Thailand-Australia Free Trade Agreement (TAFTA).

Key Facts One Must Know Before Starting Business in Thailand

Continuity of business is always more important than starting one. Therefore, there are some factors that you must know to ensure the stability of the business you wish to start in Thailand. The following points will help:

• Thailand is the second-largest economy in Southeast Asia.
• In 2020, Thailand ranked second in Southeast Asia for external world trade volume.
• The Thai Government is committed to significant investment in social and economic infrastructure. Therefore, the kingdom recently announced a THB 1.8 trillion infrastructure upgrade across the country.
• It is worth mentioning that Thailand is the 5th largest FDI recipient in East and South-East Asia (USD 19.5 billion), behind the economic giants of China, India, and Singapore.
• Thailand holds the world’s largest medical tourism market. Note that, this is the result of low-cost medical treatments and high-quality healthcare. Furthermore, Thailand boasts business opportunities for healthcare service providers. Additionally, the Thai government offers various investment incentives for the manufacturing of medical food and equipment.
• The World Bank Doing Business Report 2019 ranked Thailand as the 21st easiest place in the world to do business.
• CBRE continues to rank Bangkok as the least expensive market in Asia to rent prime office real estate, with an average rent of USD 27.99 sq.m. p.a.

Australian citizens and business entities may find an easier path to set up a company in Thailand through the Thailand-Australia Free Trade Agreement (TAFTA). However, TAFTA has more limitations than the US-Thai Treaty of Amity, yet, under certain conditions, permits the establishment of businesses with a majority of Australian ownership.

How Does TAFTA Help Australians to Setup a Company in Thailand?

The Thailand-Australia Free Trade Agreement has been in force since 2005. Moreover, between Thailand and Australia, TAFTA reduces and eliminates tariffs and quotas. Additionally, it grants Australian investors in Thailand special privileges. 

How are TAFTA Companies different?

Most other majority-foreign-owned businesses must comply with the Foreign Business Act (FBA). Furthermore, the FBA places restrictions on the kinds of businesses that foreign companies can run. However, these restrictions are either outright banning them or necessitating the acquisition of a Foreign Business License (FBL). Therefore, companies applying for an FBL will find themselves under a great deal of scrutiny. Furthermore, there will be less risk of the Department of Business Development (DBD) denying their application. Please note that the DBD scrutiny is very stringent and any small mistake in the application will lead to its cancellation.

However, an Australian business applying for a Foreign Business Certificate (FBC) under TAFTA will have a higher chance of getting approval from the DBD. Note that, the main qualification would be the sector-specific limitations. However, the sector-specific limitations may hinder the business goal of an investor. Furthermore, the Board of Investment Promotions can help Australians Set Up Companies in Thailand with up to 100% ownership in some more sectors.

Can TAFTA Companies be 100% Australian Owned?

Unlike the Thai-US Amity Treaty, which allows 100% US ownership, TAFTA only allows 100% Australian ownership in two sectors. Furthermore, TAFTA permits 100% Australian ownership only in two sectors. Whereas, the Thai-US Amity Treaty permits 100% US ownership in many sectors. Please note that the other sectors under TAFTA can enjoy 60% Australian majority ownership. However, 60% foreign ownership is also a great share as it is not possible for foreign investors from many other nations. 

A 100% fully Australian-owned company in those sectors is possible, but not under TAFTA. Therefore, this would entail submitting an FBL application. Furthermore, it is reviewed more carefully by the Department of Business Development of Thailand. Please note that this process may take some more time.

Sectors Covered by TAFTA

Businesses can apply for an FBC under TAFTA as of the time this article was published if they intend to operate in one of the following sectors:

Eligible businesses sectors	Requirements	Maximum Australian Shareholding
Mining, on land or underwater	International Exhibition Center and services	60%
Construction of public utilities or transportation that requires special equipment, machinery, technology, or expertise	Must require special equipment, machinery, technology, or expertise with a minimum paid-up capital of THB 1 billion	100%
Luxury hotel or resort services	Minimum rooms: 100 and minimum paid-up capital of THB 800 million	60%
Full restaurant services	Minimum total area: 450 sqm and a minimum paid-up capital: THB 50 million	60%
General management consulting only for a Regional Operating Headquarters (ROH)	Services must be exclusively for ROH and ROH-related companies	100%
Convention services, not including F&B services	Minimum total area (interior + exterior) of 4,000 sqm and Minimum interior of 3,000 sqm	60%
Sales and installation support services only and the products must be manufactured in Thailand by the TAFTA company	Minimum total area (interior + exterior) of 50 rai (80,000 sqm) and a minimum interior: 25,000 sqm	60%
Wholesale and retail services	Minimum total area of 10 rai (16,000 sqm) with a minimum paid-up capital: of THB 200 million	100%
Post-secondary science and technology educational institute	a. Specializing in life science, biotechnology, nanotechnology, and related areas b. Located outside Bangkok and its metropolitan areas c. At least 50% of the institution’s council directors are Thai	60%
Theme park or zoo	Minimum total area of 200 rai (32 hectares) with a minimum paid-up capital of THB 1 billion	60%
Aquatic animal park	Minimum total area of 10 rai (16,000 sqm) with a minimum paid-up capital of THB 200 million	60%
Maritime support services	Must have ship-lifting equipment, pier, and maintenance service shipyard	60%

Eligibility to Apply for TAFTA

Your business needs to satisfy the following requirements in order to submit an FBC application under TAFTA:

Nationality

1. A juristic person is set up as a partnership or a private limited company under Thai law. Additionally, there are provisions for setting up Representative and Branch Offices in Thailand.
2. The authorized director(s) are Australian or Thai. Moreover, if the entity is a partnership, there must be one Thai managing partner.
3. Shareholding:
   1. All Australian or Australian and Thai, as the case may be
   2. Shareholding percentages comply with TAFTA
   3. Australian juristic persons must comprise over 50% of Australian shareholding.

Minimum Capital

TAFTA companies must follow capital restrictions under the FBA. Additionally, these companies must operate in the Sectors under the TAFTA section. Otherwise, THB 2 million is the basic minimum capital requirement for Australians willing to set up a company in Thailand.

KONRAD LEGAL UNDERSTANDS TAFTA

Generally speaking, the entire TAFTA FBC application procedure takes about 60 days. Therefore, Konrad Legal is happy to share all the options for Australians who want to set up a company in Thailand, whether through TAFTA or another structure. So, contact us today for your free initial consultation.

How to Start Food Business in Thailand?

 

Are you aspiring to start a food business in Thailand? Then this article is going to be your super guide in the process. Due to the huge influx of visitors to Thailand, many global entrepreneurs invest in the Thai food industry. A foreign investor must adhere to Thai law’s regulations for business registration. Additionally, they should focus on consumer protection to create a business that sells food.

However, this article aims to guide you through the 3 most easy ways to start your food business in Thailand. 

First Easy Way to Start a Food Business in Thailand: Focus on Natural Resources

You must note that the food business is not only restricted to cafes and restaurants. Now is the high time to break free from this concept. Setting up a cafe, restaurant, pub, food truck or trailer never means doing food business in Thailand exclusively. They are simply a part of the food industry of Thailand and never denote the whole of it.

Thailand is often referred to as the “Food Valley of the World” due to its abundance of agricultural resources. Furthermore, Thailand holds a huge reserve of livestock and marine life. It’s noteworthy, that the kingdom holds high global ranks in terms of stock and export of these commodities.

Now would the kingdom ever want to lose this leading status in the world? Never!

Therefore, the Royal Thai Government in association with the Board of Investment facilitates the process of ease in starting a food business in this segment. It is to promote the involvement of Thai and foreign investors to boost Thailand’s position in global rankings. 

Food Processing Company

Processed foods contribute to almost 52% of Thai food exports and 15% of Thai manufacturing exports. Additionally, this year till June, the kingdom has already exported products worth US$ 45 billion. Aren’t the figures inspiring enough to start a food processing company in Thailand? 

The food processing industry in Thailand has various segments and verticals. To narrow down your scope of market research let us give you some hints.

Your business can specialize in either moderately processed or highly processed foods. Both these segments have vividly different consumer bases, which are remarkably huge respectively. Moderately processed foods refer to food items subject to canning, freeze-drying, and other preservation techniques. Whereas, highly processed foods are ready-to-eat meals, convenient meats, and meat and vegetable products. Additionally, there is a big local and export market for processed halal foods in Thailand. 

The market is promising with guaranteed growth. If you are not convinced enough, you may proceed to start your restaurant in Thailand.

Food Seasoning Company

The abundance of agricultural and raw materials in Thailand along with the availability of trained manpower is gradually reinforcing the kingdom as one of the leading food seasoning ingredient exporters. According to the Board of Investment of Thailand, the kingdom is the world’s sixth-largest exporter of food seasoning and flavoring ingredients with Australia, Philippines, Indonesia, Japan, and Malaysia as the primary export destinations.

Additionally, the local need for food seasoning ingredients is also increasing due to the boom in the Thai hospitality industry post-COVID. Therefore, even if you are not opening a restaurant or cafe, you are going to cater to their requirements.

Beverages

In the current fiscal till May 2023, the revenue generated in the Thai beverage market is almost US$1200 million. Isn’t this aspiring?

The Thai beverage market assures a CAGR of 5.2% with high demand for functional drinks and fruit juices. Additionally, Thai consumers are always in search of new and sophisticated flavors of functional drinks. This market tendency is going to give you as an investor a great scope to research and expand.

Trading Centres

This is another thriving market in Thailand. You can set up cold storage, silos and involve your business in trade and auction of agriculture products. Additionally, you can also launch digital platforms to accomplish the said objectives. Your business can also provide a platform to service farmers and business operators and a system to monitor and control the quality of agricultural products. 

Now you may ask where’s the ease? The ease is in the process of incorporating these food business units. Additionally, you can also access various alternative ways to reduce the stringency in the process, provided, you have a reliable Thai corporate lawyer by your side. Also, note that the process of registering these business units requires relatively less collateral than starting a restaurant, cafe, food truck, or stall in Thailand.

Second Easy Way to Start a Food Business in Thailand: Focus on BOI & Thai Government Incentives

If you have gone through the previous section, you may think that we talked mostly about the food manufacturing and processing business. That’s true, but, these business activities fall in the BOI-eligible bracket. Nonetheless, being in the food industry, you will target the manufacturing segment and can bag tax and non-tax benefits from the Board of Investment of Thailand.

If your food business project complies well with the BOI eligibility criteria, you will start getting the following benefits from the time you start thinking about the incorporation:

• Ease in the Thai Company Registration Process.
• No restriction in bringing in foreign skilled workers in Thailand.
• High probability of gaining 100% foreign ownership of the planned business. (In other cases, you will need to have a Thai partner holding 51% of the share of your business.)
• Exemption in the VAT and excise tax associated with the import of machinery in Thailand from your native or preferred nation.
• Become eligible for incentives on the investment in the project.

Apart from these basic benefits, you will also be eligible for other tax and non-tax benefits which, although not restricted to, primarily focus on the following:

• Corporate Income Tax exemption of up to 13 years.
• Gain a 100% tax deduction on utility bills generated in operating your business in Thailand.      
• Receive tax and non-tax benefits in expanding your business in Thailand.
• Some promoted activities receive a reduction in withholding tax rates on dividends paid to foreign investors or companies.
• Certain expenses incurred by BOI-promoted companies, such as research and development, human resource development, and transportation costs, can be double deducted when calculating taxable income.
• BOI-promoted companies are allowed to carry forward losses for up to five years, which can be deducted from future profits.

Aren’t these going to make the process of setting up and operating your food business easy in Thailand? 

Your cafe and restaurant business may give you margin, but the said lines of business will surely grant you greater ease in operating your business. Additionally, you can also enjoy greater business authority. However, if still you are thinking of a restaurant in Thailand, here is the cost of starting a restaurant in Thailand.

Third Easy Way to Start a Food Business in Thailand: Consult a Professional Thai Corporate Law Firm

Irrespective of the fact as whether you are a Thai or foreign investor, you must have a professional corporate law firm by your side to start your food business easily in Thailand. The primary reason is getting fool-proof procedural guidance, followed by other documentation and application-support benefits.

We understand that to start your business in Thailand, you might either be in the thinking phase or may have started making the preparations for the same. Irrespective of the phase you are in, we have solutions for you. Email us your business plan at officer@konradlegal.com and go for a consultation with our team of corporate law professionals. Not only would you get the best advice, but, we will surely make your process to start a food business in Thailand – EASY!

Income Tax for Foreign Business in Thailand

 

As a foreign investor or company in Thailand, it is essential for you to know about the income tax obligations in the kingdom. We all know that the Royal Thai government offers various tax and non-tax incentives to foreign investors. Therefore, unless you do your tax planning, you will never be able to assess whether you are eligible for the tax benefits or not. This article will serve as your comprehensive guide by highlighting all you must know about Income Tax for Foreign Business in Thailand.

Overview

The tax obligations on foreign business in Thailand depend significantly on the type of business it is doing here in the kingdom. The reason behind this is the following:

1. There are certain Board of Investment tax incentives that are applicable only to eligible businesses and activities. Check out the list of activities eligible for tax incentives under BOI Thailand. Therefore, if your business falls on this list, you may release yourself from various types of bills and taxes.
2. If you are into manufacturing business, then there are certain tax benefits from the Industrial Estate Authority of Thailand. Although you have to satisfy certain conditions, yet, on qualifying you can enjoy VAT exemptions and export-import tax exemptions. Check out the eligibility and tax benefits under IEAT Thailand.
3. There are double tax treaties between Thailand and 61 countries. These tax treaties remove the mandates of paying tax to foreign companies for the same income in both Thailand and the native nation. Therefore, it is always wise to check whether you are liable to pay double tax or not. These privileges of tax deduction also sometimes depend on the type of business you are planning to do in Thailand.

Note that, to ascertain the tax liability of your business in Thailand, you must check through the above three points. It might be somewhat tricky for you to review and consider all the aspects associated with the same. Therefore, you must go on consultation with a professional Thai tax law firm to clear your mind on this.

Types of Income Tax for Foreign Business in Thailand

Foreign companies operating in Thailand may be subject to various types of taxes. Here are some of the main taxes that foreign companies may be required to pay in Thailand:

Corporate Income Tax (CIT)

Foreign companies that generate income in Thailand are generally subject to CIT at a standard rate of 20%. However, specific tax incentives may apply based on the type of business and industry. Check out the Corporate Income Tax rates of Thailand below:

Value Added Tax (VAT)

VAT is applicable to the sale of goods and services in Thailand. The standard rate is 7%, but certain goods and services may be subject to a reduced rate or exemption. However, the general rate of VAT applicable to various products and services in Thailand is as follows:

Withholding Tax

Foreign companies making payments to individuals or other entities in Thailand may be required to withhold tax on certain types of income, such as interest, dividends, royalties, and payments for services. The withholding tax rates vary depending on the payment type and the recipient’s tax status. Following are the updated rates of withholding Tax in Thailand:

Specific Business Tax (SBT)

Certain types of businesses, such as financial institutions, may be subject to SBT in addition to CIT. SBT rates vary depending on the type of business.

Property Tax

If a foreign company owns property in Thailand, it may be subject to property taxes. These taxes can include land and building taxes. Check out here to know all about Property Tax Regulations and Rates in Thailand.

Stamp Duty

Stamp duty may apply to various documents, contracts, and transactions, such as property transfers and certain legal agreements.

Excise Tax and Custom Duties

Certain products, such as alcohol, tobacco, and petroleum, may be subject to excise tax. Foreign companies involved in producing or importing such products may need to pay excise tax.

Moreover, if a foreign company engages in international trade with Thailand, customs duties may apply to the import and export of goods.

Transfer Pricing Regulations

Thailand has transfer pricing regulations to ensure that transactions between related entities are conducted at arm’s length prices for tax purposes. Foreign companies must comply with these regulations when dealing with Thai affiliates. Go through our article to learn more about transfer pricing in Thailand.

Income Tax Payment Deadlines for Foreign Business in Thailand

In Thailand, tax deadlines can vary depending on the type of tax and the taxpayer’s circumstances. Here are some general guidelines for tax payment deadlines in Thailand:

The Bottomline

This article has covered a majority of the nooks and corners of income tax applicable to foreign businesses or companies in Thailand. We hope that it will help you in your understanding of the tax regime of Thailand for your business.

However, it is always wise to have a professional Thai tax consultant by your side. In addition to tax payments, we also specialize in helping Thai and foreign businesses with bookkeeping, accounting, and payroll management support. To get all the services under one roof, email us at officer@konradlegal.com for expert support.

Do Foreigners have to Pay Income Tax in Thailand?

 

Yes, foreigners do have to pay income tax in Thailand if they gain the status of being tax residents here in the kingdom. Read through this article to learn about your eligibility to pay tax and the types of tax you may have to pay in Thailand.

Types of Income that Make Foreigners Tax-liable in Thailand

Before you check your tax eligibility, it is essential to check whether your income supports tax compliance or not. In many cases of double tax treaties between your nation and Thailand, you may have to pay tax in your home country but not in Thailand. In general, the following types of income in Thailand make you tax-liable:

Salary and Employment Income

Foreigners working in Thailand are typically subject to income tax on their salaries and employment income they earn here. The tax rates may vary based on income levels. 

Check out the Income Tax slab for foreigners in Thailand.

Rental Income

If you own property in Thailand and earn rental income from it, this income is generally subject to taxation.

Business and Self-Employment Income

If you operate a business or engage in self-employment activities in Thailand, the income from these sources is typically taxable.

Interest and Dividends

Income earned from bank interest, dividends from Thai companies, or other investment income may also be subject to taxation.

Capital Gains

Depending on the circumstances, capital gains from the sale of certain assets in Thailand. Note that, it can be real estate or securities that are taxable in your case.

Pensions and Annuities

Foreigners receiving pensions or annuities from sources in Thailand may have tax obligations.

Royalties

If you receive royalties from intellectual property or other sources in Thailand, this income may be taxable.

Other Sources of Income

Any other income earned in Thailand, including prizes, awards, or other windfalls, may also be subject to taxation.

As stated earlier, if your country holds any type of tax treaty or bilateral trade agreement with Thailand, your income may be subject to tax deductions or exemptions. Therefore, it is recommended that you should consult with a reliable tax firm in Thailand to get this eligibility checked.

Income Tax Eligibility for Foreigners in Thailand 

Income tax for foreigners in Thailand varies depending on several factors, including your residency status and the type of income you earn in the country. Here’s a general overview:

Residency Status

Thailand distinguishes between resident and non-resident foreigners for tax purposes. Your residency status is determined by how many days you spend in the country within a tax year.

• Resident: If you stay in Thailand for 180 days or more in a tax year, you are considered a tax resident.
• Non-Resident: If you stay in Thailand for at least 180 days in a tax year, you are considered a non-resident.

Taxable Income

Tax residents are generally taxed on their worldwide income, while non-residents are taxed only on income earned in Thailand.

Tax Rates

Thailand uses a progressive tax rate system for personal income tax, which ranges from 0% to 35%. Please note that tax rates and brackets may change over time, so it’s essential to check the latest tax rates from the Thai Revenue Department or consult a tax professional in Thailand.

Tax Deductions and Exemptions

Thailand offers certain deductions and exemptions for both residents and non-residents. These may include deductions for specific expenses, allowances, and exemptions for certain types of income.

Filing and Payment

Tax residents must file a personal income tax return by the end of March each year. Non-residents must file a return within seven days of departing Thailand if their income is subject to withholding tax.

Double Taxation Agreements (DTAs)

Thailand has entered into Double Taxation Agreements with many countries to prevent double taxation. If you’re a foreigner, check whether your home country has a DTA with Thailand, as it can affect your tax liability.

Tax Identification Number (TIN)

Foreigners who work or earn income in Thailand should obtain a Tax Identification Number, which is used for tax-related purposes.

Types of Income Tax Payable by Foreigners in Thailand

Foreigners in Thailand may be subject to various types of income tax depending on their specific circumstances. Here are the main types of income tax that foreigners may be liable for in Thailand:

Personal Income Tax (PIT)

Foreign individuals who earn income in Thailand are generally subject to PIT. The tax rates vary based on the amount of income earned, with progressive rates ranging from 0% to 35%. Deductions and exemptions may apply depending on the nature of income and personal circumstances. Know about the recent updates on Personal Income Tax in Thailand.

Corporate Income Tax (CIT)

Foreigners who own or invest in Thai companies may be subject to CIT on their corporate income. The standard CIT rate is 20%, but certain incentives and exemptions may apply to specific industries or activities. Click to file your corporate income tax in Thailand today!

Withholding Tax

Foreigners who receive certain types of income from Thai sources may have withholding tax obligations in Thailand. This can include dividends, interest, royalties, and payments for services. The rates vary depending on the type of income and the tax treaty, if any, between Thailand and the foreign individual’s home country.

Value Added Tax (VAT)

While not an income tax per se, VAT is an indirect tax that can impact foreigners doing business in Thailand. It applies to the sale of goods and services and is typically collected by businesses. Foreigners who engage in business activities in Thailand may need to register for VAT and comply with its regulations.

Specific Business Tax (SBT)

SBT is a tax that applies to specific types of businesses and activities, such as liquor, tobacco, and entertainment establishments. Foreigners involved in such businesses may be subject to SBT.

Property Tax

Foreigners who own property in Thailand may be subject to property taxes, including the land and buildings tax and the local development tax.

Check out whether you have to pay property tax in Thailand or not!

Stamp Duty

Stamp duty may apply to certain legal documents and financial transactions in Thailand, and foreigners could be subject to it depending on their activities.

The Bottomline

Income tax, be it personal, corporate, withholding, or of any type in Thailand is guided by some country-specific protocols. Thailand typically follows Thailand Financial Reporting Standards (TFRS) as the governing guidelines in the process of reconciliation, filing, and payment of income taxes. However, if you need to show the same in your country, that may need International Financial Reporting Standards (IFRS).

Therefore, it is crucial that you consult a reputed tax firm in Thailand to get things properly aligned. For a complete solution, email us at officer@konradlegal.com and get to know all about your eligibility to pay tax. Our professionally qualified Thai tax professionals will surely ensure a smooth tax filing and payment process in Thailand.

Work Permit in Thailand from Board of Investment (BOI)

 

The Board of Investment (BOI) is a government agency in Thailand that promotes and facilitates investment in the country. If you are looking to obtain a work permit in Thailand through BOI, it is typically related to employment with a company that has received BOI privileges and incentives. Through a Board of Investment (BOI) approved company, you can apply for a business visa in Thailand along with a work permit to start a business and relocate to Thailand. This article will guide you through the process of applying for and obtaining a BOI Thailand Work Permit.

Why Apply for BOI Thailand Work Permit?

A firm approved by Thailand’s BOI may have 100% foreign ownership and do physical business in Thailand. Whereas, conventional Thai companies have foreign ownership restrictions to a maximum of 49%. In addition, depending on location and type, a BOI firm may qualify for a 0% corporate tax rate for the first 8 years of operation as well as an exemption from V.A.T. for importing machinery.

Unlike conventional Thai companies, BOI companies are not constrained to a 4:1 ratio. Therefore, this makes it easier for BOI-promoted companies to bring in foreign employees. Owing to this reason, the process of obtaining a work permit becomes easier.

In the process of obtaining a BOI Thailand Work Permit, your pre-requisite is holding a Non-immigrant B Visa. You can apply for the same from Royal Thai Embassies or Royal Thai Consulates located in your country.

Without this, obtaining a BOI work permit in Thailand as a foreigner is not possible. Note that, the exact requirements may vary depending on your specific situation and the policies in place at the time of your application. 

Steps to obtain a BOI Thailand Work Permit: 

Find Employment

You need to secure a job with a company that has received BOI privileges. BOI privileges are often granted to companies operating in certain industries, such as manufacturing, technology, and services. Make sure your potential employer is eligible for these privileges.

Apply for a Non-Immigrant Visa

Once you have a job offer from a BOI-promoted company, you’ll need to apply for a Non-Immigrant Visa (Type B) at a Thai embassy or consulate in your home country. You will need various documents, including an employment contract and a letter from the BOI-promoted company confirming your employment.

Arrive in Thailand

After receiving your Non-Immigrant Visa, you can enter Thailand. You must do this within a certain timeframe after obtaining the visa.

Submit Work Permit Application

Your employer will need to submit a work permit application on your behalf to the Department of Employment within the Ministry of Labor in Thailand. This application will include various documents such as your employment contract, educational qualifications, and medical certificate.

Medical Checkup

You may be required to undergo a medical checkup at an approved hospital or clinic in Thailand. This is to ensure you are in good health and not carrying any infectious diseases.

Police Clearance Certificate

You may also need to provide a police clearance certificate from your home country or the country where you have lived in the past.

Work Permit Approval

Once your work permit application is approved, you will receive a work permit book.

Notification of Stay

You will need to report your place of residence to the local immigration office within 24 hours of your arrival in Thailand and whenever you change your address.

Renewal and Reporting

Work permits typically need to be renewed annually. You and your employer will need to ensure that all reporting requirements are met throughout your employment in Thailand.

Please note that immigration and work permit requirements in Thailand can change, and it’s essential to check with the Thai Embassy or Consulate in your home country or consult with a legal advisor who specializes in Thai immigration and labor laws for the most up-to-date information and guidance regarding the BOI work permit process.

The process can be complex and time-consuming, so it’s advisable to seek professional assistance to navigate the application successfully. Therefore, once you receive a job offer from a prospective BOI company in Thailand, you can contact us for the rest of the procedure. Email us at officer@konradlegal.com to steadfast your process of obtaining a BOI Thailand work permit.

Business in Thailand for Indians

 

As an Indian citizen, if you are planning to start your business in Thailand, there are plentiful options. For instance, the digital economy of Thailand is growing rapidly. This single section holds a multitude of business options for Indian business owners, entrepreneurs, or startups. Apart from this, the manufacturing and tourism industry also extends loads of opportunities for business aspirants from the Indian subcontinent. In this article, we will discuss primarily the best business options in Thailand for Indians who are interested in penetrating the digital and/or production or manufacturing industry of Thailand.

Business for Indians in the Thai Digital Economy

E-commerce Business

Digital Marketing Agencies

Digital Platforms

Business for Indians in the Thai Industrial Sector

Automobile Industry

Food Industry

Other Production or Manufacturing Businesses

The Bottomline

Best Business in the Thai Digital Economy for Indians

According to the Bangkok Post, Thailand’s gross domestic product (GDP) benefited 2.1 billion baht from the digital economy in 2022, a rise of 1.9% from 2.04 billion baht the year before. The true expansion rate of the Thai digital economy in the last two years is around 12.1%. The Royal Thai Government expects that the digital economy is going to contribute 30% to the GDP by 2027.

Therefore, to boost this growth, the Board of Investment of Thailand in association with the government and other pinnacle agencies is bringing forth various policies. These policies are the schemes and privileges that foreign investors in Thailand receive as support for their business in the kingdom. Normally, these schemes involve tax and non-tax benefits.

Go through our article to know all about the BOI benefits for Diigital Agency Startups in Thailand.

With a growing digital economy backed up by a robust digital infrastructure and facilities, Thailand has the following business options for Indians:

E-commerce Business (preferably Grocery, Food and Jewelry)

Starting an e-commerce business in Thailand is a great option to penetrate the digital economy of Thailand. Ever since the announcement of the COVID-19 lockdowns, Thai citizens have started to rely on digital platforms for shopping for their daily essentials. Many times, they also order luxury goods like gems and jewelry via online shopping platforms.

As this is the beginning of the expansion period of the Thai digital economy, there is a lot of space for the co-existence of multiple similar businesses in the kingdom. The kingdom has a population of approx. 72 million till January 2023, out of which 53% of the population are familiar with online shopping. Isn’t that a huge market to tap into?

Digital Marketing Agencies

Digital marketing agencies in Thailand are one of the most sought-after businesses. It is because of the rapid adaptation of Thai citizens to digital platforms. To meet this requirement, Thai companies are in need of digitalization of their marketing and communication processes. 

Although digitalization in Thailand started in 2016, yet, it became a practice in India much earlier than that. Therefore, the understanding of the concept is much clearer to Indian citizens which can facilitate their process of identifying the proper digital requirements and providing the necessary solutions.

Digital Platforms

This business section comprises various types of fintech, online teaching and learning, and travel booking services. Although the avenue and scope are not restricted to this much. Investors can come up with new ideas to develop digital platforms in Thailand that can add value to the Thai digital economy.

Any type of project holding innovation, uniqueness, and inclusiveness in their idea can be eligible for tax and non-tax incentives from BOI Thailand. Such benefits often comprise tax holidays, ease in obtaining work permits, no restrictions on recruitment of foreign employers, and chances to hold 100% foreign ownership of the Thai business.

Best Business in the Thai Industrial Sector for Indians

Growing at the rate of 4% CAGR, the industrial or manufacturing sector of Thailand holds a lot of potential for Indian investors. Spread across different verticals of the automotive industry, food processing, textile industry, chemicals, and petroleum, Thailand has a vast expanse for Indian investors to explore. Following are the brief insights of some of the preferred or best business verticals in Thailand for Indians:

Automobile Industry

The vehicle production rate in Thailand is projected to grow by 2.1% YoY. This is a good volume to explore and this growth is evident for the following reasons:

1. Thailand is one of the top 10 nations in the world in terms of automobile manufacturing.
2. The kingdom is the 4th largest auto assembly and export hub in Asia.
3. The volume of vehicle exports in July 2023 went up by 30% YoY.

Competing with global giants like Japan, China, and Germany, Thailand has a great impact on the global automobile industry. Additionally, many automobile production giants like Toyota, Nissan, Honda, and Mitsubishi have shifted their production units to Thailand from other SE Asian nations.

Food Industry

For your information, the agriculture industry of Thailand contributes greatly to the Thai GDP. Being rich in agricultural resources, the kingdom can give you a wide range of opportunities in the food industry. This industry is especially beneficial for Indians because of the following reasons:

1. Being an agro-centric economy, Indians have a better understanding related to agricultural products and their processing.
2. The Thai food industry has not reached stagnation and is growing year after year due to the increase in the influx of foreigners in the kingdom with different food tastes and preferences.

Apart from food processing, this industry also offers foreign investors the option of starting eateries and restaurants in Thailand. If this interests you, read our article to start a restaurant in Thailand.

Other Production or Manufacturing Businesses

Thailand is rapidly developing itself as the manufacturing hub of Southeast Asia. This is due to its growth in terms of industrial infrastructure and the various government schemes that are promoting manufacturing as one of the target activities for the development of the Thai economy. This is one of the reasons that production or manufacturing is the best business option in Thailand for Indians.

In one of the recent announcements, BOI Thailand declared biotechnology, nanotechnology, and clinical technology as activities of interest for the growth of the Thai economy. Therefore, if your production or manufacturing business focuses on any of these activities, in addition to the government benefits, you will receive great business exposure as well. Let us help you with the ideas of some similar businesses.

• Production of eco-friendly chemicals or polymers
• Manufacture products from eco-friendly chemicals or polymers
• Manufacture of raw materials and/or essential materials for molecular biological research
• Production of fuels from agricultural products, scraps, wastes, or garbage
• Manufacturing of modern agricultural products like fertilizers, irrigation systems, or tracking devices

Any of the above-mentioned business activities will readily attract benefits of up to 13 years of tax holiday along with various other benefits from BOI Thailand.

The Bottomline

Have you read till here? Then, by now you must have got the idea of the type of business that is going to be suitable for you. After deciding the type of business you will do in Thailand, it is essential to have local Thai support by your side. It is because of the mandate of having a Thai partner for foreign investors and decoding the complex Thai regulations.

As an Indian investor, it is very likely that you will have your legal and accounting professionals on board. But, contrarily, it is very unlikely that they will have a competent understanding of Thai legal norms and regulations. For that, you will need a competent and reliable Thai corporate law and accounting firm.

However, in addition to educating you on the Thai business landscape, we can help you incorporate your business in Thailand with our elegant corporate law and accounting services. Email us your business idea at officer@konradlegal.com and our team of professionals will get back to you within one business day.