What Business to do in Thailand in 2024?

 

2023 has been a remarkable year for foreign investors in Thailand due to these reasons:

• Announcement of new schemes for foreign investors, including additional Corporate Income Tax exemption of up to 13 years. This is a significant incentive for foreign investors, as it can save them a significant amount of money.
• Provision of 10-year long-term Visas for foreign investors. This makes it easier for foreign investors to live and work in Thailand, which can be a major advantage for businesses that require a high level of expertise or specialized skills.
• Announcement of special privileges for the digital and creative economy to support the evolving Digital ecosystem of Thailand. This is a growing sector in Thailand, and the government is keen to attract foreign investment in this area.
• Focus on Smart Technologies in the Manufacturing Industry with special privileges of free trade zones, free ports, and trade facilitation for foreign investors. This is another area where the government is keen to attract foreign investment, as it sees smart technologies as a key driver of future economic growth.

The government is clearly committed to making the country a more attractive destination for foreign investment, and these new schemes and incentives are a testament to that commitment. The following are the outcomes of the several investor-friendly schemes and policies of the Royal Thai Government in alliance with the Board of Investment of Thailand:

• Approximately 700 billion US$ of foreign direct investment inflow: This is a significant amount of investment, and it is clear that Thailand is a desirable destination for foreign investors. The country's strong economy, political stability, and favorable business climate are all factors that contribute to its attractiveness to investors.
• More than 100 Greenfield Investment Projects: A Greenfield Investment is a new investment in a new location. This type of investment is often seen as a sign of confidence in the country's economy and future growth prospects. The fact that Thailand has attracted more than 100 Greenfield Investment projects in recent years is a testament to its appeal to foreign investors.
• Received establishment and expansion funds from 5800 digital startup projects: Thailand's digital economy is growing rapidly, and this is reflected in the number of digital startup projects that have received funding from foreign investors. The country's strong infrastructure, skilled workforce, and favorable regulatory environment are all factors that are attracting digital startups to Thailand.
• MNCs like Microsoft, Google, Meta, and Tesla are planning to set their bases in Thailand: The fact that major multinational corporations are planning to set up their bases in Thailand is a significant vote of confidence in the country's economy and future growth prospects. These companies are attracted to Thailand's strong economy, political stability, and favorable business climate.

Businesses that flourished in Thailand during 2023

• Tourism: The tourism industry in Thailand saw a 44% year-over-year (YoY) growth in 2023. This growth was driven by a number of factors, including the country's reopening to international tourists, the easing of travel restrictions, and the strong performance of the Thai baht. The tourism industry includes a wide range of businesses, such as tour guides and agencies, hotels, resorts, spas, and foreign currency exchange.
• Real Estate: The real estate industry in Thailand saw a 26% YoY growth in 2023. This growth was driven by a number of factors, including the country's strong economic growth, the low-interest rates, and the increasing demand for housing. The real estate industry includes a wide range of businesses, such as real estate developers and real estate agents.
• Herbal Products: The herbal products industry in Thailand saw a 33% YoY growth in 2023. This growth was driven by a number of factors, including the increasing demand for herbal medicines, fragrances, and spices. The herbal products industry includes a wide range of businesses, such as herbal medicine manufacturers, fragrance manufacturers, and spice traders.
• Electrical and Electronics: The electrical and electronic installations industry in Thailand saw a 25% YoY growth in 2023. This growth was driven by several factors, including the increasing demand for electrical and electronic products, the growth of the construction industry, and the government's investment in infrastructure. The electrical and electronic installations industry includes a wide range of businesses, such as electrical contractors, electronic product manufacturers, and electrical and electronic equipment suppliers.
• E-commerce: The e-commerce industry in Thailand saw a 19% YoY growth in 2023. This growth was driven by several factors, including the increasing use of the Internet, the growing popularity of online shopping, and the government's support for e-commerce. The e-commerce industry includes a wide range of businesses, such as online retailers, e-commerce platforms, and logistics companies.

Businesses that are expected to grow in Thailand in 2024

• Food Industry including food parks and restaurants: The food industry is expected to grow at a CAGR of 8.5% in 2024. This growth is being driven by the increasing demand for convenience food, healthy food, and food delivery services. Food parks and restaurants are expected to be the key drivers of this growth, as they offer a variety of food options and a convenient dining experience.
• Travel and tourism industry: The travel and tourism industry is expected to grow at a CAGR of 5.5% in 2024. This growth is being driven by the increasing disposable income of consumers, the growth of the middle class, and the rise of social media. Travel and tourism companies are expected to focus on developing new and innovative products and services to attract customers.
• Gems and Jewelry Industry: The gems and jewelry industry is expected to grow at a CAGR of 6.5% in 2024. This growth is being driven by the increasing demand for luxury goods, the growth of the middle class in emerging markets, and the rise of online shopping. Gems and jewelry companies are expected to focus on developing new and innovative products, as well as expanding their online presence.
• Automobile, Spare parts, and machinery: The automobile, spare parts, and machinery industry is expected to grow at a CAGR of 7.5% in 2024. This growth is being driven by the increasing demand for automobiles, the growth of the automotive industry in emerging markets, and the rise of electric vehicles. Automobile, spare parts, and machinery companies are expected to focus on developing new and innovative products, as well as expanding their global reach.
• Healthcare industry: The healthcare industry is expected to grow at a CAGR of 10.5% in 2024. This growth is being driven by the increasing aging population, the rising prevalence of chronic diseases, and the development of new and innovative medical technologies. Healthcare companies are expected to focus on developing new and innovative treatments, as well as expanding their global reach.

Are you planning to start your business in Thailand in 2024 in any of these suggested or any other industries?

Contact us for

• 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

Simply email us your business plan at officer@konradlegal.com and our team of professionals will get in touch with you within one working day.

Best Business to do in Thailand in 2024

 

2023 has been a great year for business owners and international investors in Thailand. The reverse is also true! Thailand too received a great volume of foreign direct investment in 2023. 2024 is going to bring around greater deals for and from foreign investors in Thailand. This article intends to demonstrate the complete idea of what can be the best business to start in Thailand in 2024 for foreign investors.

Although we will give you an idea of the best business possibilities and opportunities in Thailand in 2024, all that is based on various events and announcements made in 2023 by pinnacle Thai organizations. Let us go through them briefly before you start your business in Thailand in 2024!

BOI Announcements made in 2023 that will be useful in 2024

BOI Thailand announced additional incentive schemes in 2023 that target the following activities:

All businesses set with the vision to cater to the segments above are eligible for the general BOI Promotions. But, after the announcement of the additional privileges in these target activities, businesses can now enjoy the following advantages:

• Additional Limit of 200% Corporate Income Tax Exemption on Investments and/or Expenditures
• Additional Period of exemption ranges from 1 to 5 years
• For Investments or Expenditures in R&D projects, the corporate income tax exemption has no cap and will be applicable for 13 years from the date of incorporation of the business.

Therefore, if your 2024 business plan aims towards R&D projects, Human Resource Development Ventures, or trades that can strengthen the local Thai supply vendors, you can easily avail the said promotions and benefits.

Prime Minister & BOI Thailand inviting Foreign Direct Investment

The Board of Investment of Thailand also announced various tax and non-tax benefits for certain other industries. Ever since the joining of the new Prime Minister, Srettha Thavisin, a great deal of focus has been placed on the Creative, Digital, and Bio-circular-green economy. Additionally, the electronics and electric vehicle industry also attracts PM and BOI attention. Click the image below to know the most recent updates:

What do other Agencies have to say?

If you are aspiring to try your hold in the Thai Industrial or Manufacturing Industry, then you must listen to the Industrial Estate Authority of Thailand (IEAT). IEAT is focusing greatly on the following parameters:

1. Smart Industries
2. Zero-emission or carbon-neutral production facilities
3. Investor collaboration in establishing their Smart Park Industrial Estate
4. Driving Sustainability with ESG (Environmental, Social and Governance)

To achieve these targets, IEAT has organized roadshows, seminars, and conferences throughout 2023. Additionally, the organization also conducted online surveys and focused greatly on online awareness campaigns and promotions to achieve their new goals. The most interesting part of the game is that a major focus point behind all these activities was to “attract investors – preferably foreign investors” with advanced and clean technology to set up their production facilities in the IEAT trade zones.

What Business Should You Start in 2024 in Thailand?

This is the conclusion that you might have been looking for. If we take into consideration all the announcements and initiatives taken by the pinnacle policymakers of Thailand, we suggest that the following businesses will surely be beneficial for foreign investors in Thailand:

Innovative Projects primarily relating to Research and Development

To involve your investment and venture in this segment, you can take the following initiatives:

Check Thai Government Agencies and Institutions’ Announcements

Check the websites of government agencies and institutions involved in science, technology, and innovation in Thailand. Examples include the National Science and Technology Development Agency (NSTDA) and the Thailand Research Fund (TRF).

Seek Industry Associations

Look into industry associations related to your field of interest. These organizations may provide information on R&D projects and collaborations. For example, the Thailand Board of Investment (BOI) promotes investment in various industries.

Loop into International Collaboration Platforms

Check international collaboration platforms and programs that involve Thailand and include partnerships between Thai institutions and foreign entities. Keep an eye on announcements from organizations like the Thailand Research Fund and the Ministry of Higher Education, Science, Research and Innovation (MHESI).

Contact Embassies and Consulates

Contact your country’s embassy or consulate in Thailand. They may have information on collaborative projects or initiatives that involve foreign researchers.

Attend Networking Events and Conferences

Attend industry-specific conferences, seminars, and networking events. These gatherings often showcase current projects and provide opportunities to connect with researchers and professionals.

Human Resource Development Projects

These projects can target Thai employers and employees and skill enhancement for foreign employees as well. To check if your business idea fits well in the Thai business landscape, scan through the following options:

Look for Government Initiatives

Check with the Ministry of Labor or related government agencies in Thailand for information on programs or projects aimed at supporting the development of foreign workers in the country.

Check with International Organizations

Look into initiatives by international organizations, like the International Labour Organization (ILO) or the United Nations Development Programme (UNDP) to collaborate with Thailand on projects related to human resource development.

Consult Chambers of Commerce and Business Associations

Connect with local chambers of commerce or business associations, both Thai and international with initiatives to facilitate the professional development of foreign workers.

Connect with Educational Institutions

Explore partnerships between Thai educational institutions and foreign organizations for training and development programs as they offer courses or projects in collaboration with businesses.

Look for Private Sector Programs

Various private and multinational corporations have their initiatives for human resource development and talent management in Thailand and your specific industry.

Smart Electronics and Smart Industrial Hub

This field is packed with opportunities as the focus on Thailand 4.0 has deepened greatly and as this field directly links to industrial development, in addition to benefits from the BOI, investors can grab attractive privileges from IEAT as well. Following are a few ways of exploring avenues related to the same:

Government Agencies and Initiatives

Check with government agencies in Thailand that are involved in promoting technology and innovation like the BOI or the Ministry of Science and Technology.

Technology Incubators and Accelerators

Explore technology incubators and accelerators in Thailand like True Digital Park, dtac Accelerate, and other startup incubators.

Universities and Research Institutions

Thai universities and research institutions may be involved in smart electronics projects. Look for collaborative opportunities or projects initiated by these educational institutions.

Industry Associations

Connect with industry associations related to electronics and technology in Thailand. They may have information on ongoing projects and can provide insights into the local industry.

Tech Events and Conferences

Attend tech events and conferences in Thailand. These gatherings often showcase the latest developments and provide networking opportunities. Events like Techsauce Global Summit or Digital Thailand Big Bang may be good starting points.

Online Platforms and Forums

Explore online platforms and forums where the local tech community discusses projects and collaborations. Websites like Techsauce, Thai Tech, or LinkedIn groups related to technology in Thailand could be valuable.

Projects in the Digital and Creative Economy

The digital and creative industry in Thailand has witnessed exponential growth ever since 2020. This includes various facets like the development and initiation of e-commerce platforms, cloud services, and digital hubs creating great opportunities for creative and digital communication projects. Till June 2023, the digital industry applied for 60.85 billion baht worth of BOI privileges, mostly in data centers, cloud services, and digital ecosystems. Click the link to learn about the new announcement of BOI benefits for Digital and Software Businesses in Thailand. The creative industry applied for 52.81 billion baht worth of BOI privileges, mostly in film, games, animation, gems, and jewelry. Learn about the benefits of starting a gems and jewelry business in Thailand.

The Bottomline

Your project in any of these industries ensures the following:

1. Assured tax and non-tax benefits from the Board of Investment of Thailand
2. High chances of obtaining 100% foreign ownership
3. Special Permissions from IEAT to own land and property in Thailand
4. Unlimited scope of bringing in foreign workers in Thailand
5. Reductions in import and export duties for goods necessary to initiate or generated from target or promoted activities  

To start your business in any of these industries in 2024 in Thailand, your first step will be to register your company in Thailand. Henceforth, you have to proceed with your obtaining of work permit (for foreign employees), and tax and SSO registrations. To achieve all these it is always recommended that foreign investors must consult with a local corporate law and accounting firm in Thailand.

Company Registration in Thailand for Expats

 

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

Challenges & Solutions for Expats: Business Registration in Thailand

Foreign Business License for Expats in Thailand

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

BOI Benefits for Expats in Thailand

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

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

Key Steps of Business Registration for Expats in Thailand

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

Find a Thai Partner

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

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

Check the eligibility for BOI Promotions

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

Register your Business with the Department of Business Development of Thailand

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

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

Apply for a Visa and Work Permit

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

Open a Corporate Bank Account

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

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

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

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