Register Food and Beverage Company in Thailand

 

In the realm of global business, players frequently overlook Thailand’s burgeoning food and beverage sector, opting instead for established English-speaking markets such as Australia and Singapore. However, it is an unmissable market opportunity for investors and entrepreneurs to tap into the vibrant culinary landscape and start a food and beverage company in Thailand.

Nestled in the vibrant heart of Southeast Asia, Thailand stands as the second-largest economic powerhouse in the ASEAN region. With the government’s generous support and affordable and abundant agricultural resources, establishing a manufacturing base or regional headquarters in Thailand is very simple. Thai consumers exhibit a strong propensity to spend on food, often exceeding their income, while the influx of tourists contributes significantly to Thailand’s status as one of the most visited countries worldwide.

Surprisingly, many companies that are actively exploring the Thai market overlook a tremendous opportunity the country presents. This unique opportunity allows businesses to gain unmatched access to the Thai market, significantly accelerating the growth of their F&B brand and product to rival Coca-Cola’s level of recognition in a fraction of the time compared to traditional market penetration strategies.

Food & Beverage Industry in Thailand: A Pool of Opportunities

Thailand, often overlooked, offers an outstanding market for international food and beverage companies. Its rapidly expanding middle class has disposable income and an unquenchable thirst for diverse culinary experiences. Tourism, a significant contributor to Thailand’s GDP, attracts a diverse audience with varied food preferences. From budget-conscious consumers to luxury seekers, there’s a customer base for every type of product in Thailand’s F&B market.

The rapidly evolving Thai Food and Beverage industry presents a landscape of emerging purchase points. Convenience stores, boasting an extensive network of over 20,000 outlets across the country, serve as strategic locations to reach a diverse range of consumers. Additionally, Thailand’s world-class shopping malls provide a steady flow of foot traffic, making them ideal locations for QSRs to establish a strong presence.

Info Tip!

The Thai market has not been monopolized in sectors beyond the spirits industry. Unlike saturated and competitive markets such as Japan, gaining access to retail channels and reaching consumers in Thailand is comparatively less challenging.

The ease of doing business in Thailand complements the favorable business environment. This makes it an attractive destination for F&B companies seeking a foothold in the APAC region. English proficiency in Thailand is relatively high, and comprehensive business support mechanisms. Such businesses can easily attract government subsidies and dedicated support teams to enhance their appeal. Furthermore, these factors create a conducive environment for establishing a robust presence in the region.

Entering the Food and Beverage Industry in Thailand: Check your Potential!

To enter the Thai market, you can utilize one of three main strategies, each offering distinct advantages and considerations.

Start with Complete Control

To operate in Thailand, one may choose to establish their own manufacturing facility, distribution network, marketing, and sales force. Although this approach demands considerable financial investment, it grants complete control over all aspects of the business. Additionally, it allows tailored decision-making and efficient operations.

Traditional Partnership Approach

Initiating market penetration in Thailand requires collaboration with a local importer or distributor. This established approach requires time to identify suitable partners and educate the market about your product, often spanning several years.

Strategic Business Partnership

Entrepreneurs with distinctive brands or cutting-edge technology will benefit from this chance. By collaborating with a prominent Thai food and beverage manufacturer, you can access their local resources to quickly launch your product. Working with a partner with extensive local networks allows your product to reach customers more quickly, but it also means sharing a larger portion of your revenue.

Process to Start a Food & Beverage Company in Thailand

A food and beverage company in Thailand can specialize in various sectors like restaurants, food trucks, food manufacturers, or distributors. There is a wide scope of opportunities in Thailand to monetize!

However, to start any type of food and beverage business in Thailand, the basic process is the same. It is as follows:

Henceforth, depending on the type of food and beverage company you want to start in Thailand, you will need some additional licenses and permits. Some of such permissions are as follows:

• To Start a Food and Beverage Manufacturing Company you must obtain a Factory License in Thailand
• Starting a Brewery mandates you to Apply for a Brewery License in Thailand

Additionally, your business may be eligible for Industrial Estate Authority of Thailand (IEAT) or Board of Investment (BOI) promotions as well. 

• If you are planning to set up a food and beverage manufacturing company in Thailand in the FTZs or SEZs of Thailand, you can apply for IEAT promotions.
• If your food business relates to food processing at par with the target BOI activities, you can also apply for BOI Thailand promotions.

Groundwork to Start a Food & Beverage Company in Thailand

To effectively form a strategic partnership in Thailand, meticulous preparation and relationship-building are essential.  We suggest these steps as a fundamental guide:

Do Thorough Industry Research in Thailand

To succeed in Thailand’s F&B industry, it’s crucial to grasp the local culture, and business environment, and foster face-to-face connections. The Thai government actively supports companies in this sector. The Thailand Board of Investment (BOI) offers online resources, financial subsidies, and benefits to start a business in Thailand.

Explore Partnership Options

In Thailand, fostering amicable business relationships is essential, as they significantly influence the success or failure of business transactions.

Understand the Thai Passion for Food

Similar to Italy and Japan, Thailand’s affinity for food runs deep. Infuse this passion into your product and business strategies to create a truly immersive experience for customers.

Consult with Experts

Forging strategic alliances is an intricate skill. While trial and error is a viable learning method, it incurs opportunity costs. Seeking the guidance of experienced individuals increases the likelihood of successful initial implementation.
All you need to do is email us your plan at officer@konradlegal.com and we get you covered throughout. As a leading corporate law firm in Thailand, we guide Thai and foreign investors to start their food and beverage companies in Thailand successfully!

How to Start a Medical Business in Thailand?

Thailand, a rapidly developing nation with a burgeoning healthcare industry, holds immense potential for entrepreneurial enthusiasts seeking to explore business ventures in this domain. The country’s expanding population and escalating demand for high-quality medical services create an alluring opportunity for entrepreneurs to establish healthcare enterprises. However, starting a medical business venture in Thailand demands meticulous planning and execution due to its complexity. This concise guide aims to provide valuable insights and facilitate the journey of aspiring entrepreneurs by addressing the crucial question – “How to start a medical business in Thailand?”

The Aging Society of Thailand needs special Medical Facilities!

Thailand’s healthcare industry is expanding, but its aging population is also growing. This trend is not unique to Thailand as it happens in many countries. Consequently, the demand for healthcare services in Thailand will increase. Thailand’s aging population is projected to surpass that of Europe and the US by 2045. Accordingly, the need for healthcare services will continue to rise.

The Healthcare Sector of Thailand is Booming!

Thailand has made significant strides in enhancing access to medical care and public healthcare. Substantial investments in time and resources have facilitated easier utilization of healthcare services. Government expenditure on healthcare has experienced a rapid increase, growing from below 50% in 1995 to approximately 80% in the present. Furthermore, Thailand implemented a universal healthcare system in 2002, which has proven to be highly successful. As an outcome, over 99% of Thai citizens now benefit from public healthcare access.

The extensive network of healthcare facilities in Thailand comprises over 1,000 government hospitals and 300 private hospitals, offering a diverse range of services and treatments. This extensive network strongly suggests that the public healthcare system in Thailand effectively serves the needs of the majority, if not the entirety, of the population.

Comprehensive Framework to Start Medical Business in Thailand

To successfully start a company in Thailand, it is advisable to follow a systematic step-by-step process. Begin by selecting the most appropriate company structure and reserving a desired name through the Department of Business Development. Proceed to create the articles of association and convene a shareholders’ meeting. Subsequently, register the company and acquire a tax identification number. For foreign directors or employees, it is essential to obtain the necessary visas and work permits. By adhering to this organized approach, you can ensure a smooth and efficient company formation process in Thailand.

Although Thai laws impose restrictions on foreign ownership, medical companies can overcome these challenges in two ways:

Option 1: Obtaining a Foreign Business License (FBL)

To obtain an FBL, medical companies must secure approval from the Foreign Business Committee and the General Director of the Department of Commercial Registration.

Option 2: Seeking Approval from the Thailand Board of Investment (BOI)

Medical companies can also seek approval from the BOI, which offers various incentives and benefits to foreign investors.

By following these guidelines and exploring these options, medical companies can successfully establish their presence in Thailand and navigate the regulatory landscape.

BOI Promotion to Start Medical Business in Thailand: Check Eligibility!

To obtain Board of Investment (BOI) approval, ensure that your intended medical activity falls within the seven eligible categories:

If your proposed activity qualifies, submit the BOI license application online. BOI officers will conduct an initial application evaluation. If your application receives preliminary acceptance, company representatives or directors must attend a meeting with a BOI expert committee within ten (10) days of the application to deliver an oral presentation.

The project will undergo a subsequent evaluation 90 days after the meeting to determine whether the BOI certificate will be granted.

Why is BOI Certification Helpful for Medical Business in Thailand?

The Board of Investment (BOI) certification in Thailand offers substantial benefits that extend beyond tax incentives:

Tax Benefits

• BOI Certification exempts companies from paying corporate income tax for a period spanning 3 to 8 years, contingent on the nature of their business activities.
• Provision of availing a 50% reduction in corporate income tax for a maximum duration of 5 years.
• Waiver on Import taxes for machinery and raw materials employed necessary for research and development projects.

Additional Advantages

• 100% Foreign ownership of company shares is permitted.
• Foreign investors are encouraged to explore investment opportunities.
• Provision to bring in foreign technicians and experts to contribute their expertise in Thailand.
• Facilitation of international financial transactions owing to the provision of unlimited foreign remittance.
• Ownership of land is possible, subject to project approval, enabling long-term investment and development.

Basic Incentive for Eligible Medical Businesses in Thailand

The Board of Investment (BOI) provides numerous benefits to support and attract investment projects that align with the government’s development goals. These incentives, which were previously mentioned, are designed to encourage investment in Thailand.

We take it to be our responsibility to update our audience with the benefits and announcements of BOI Thailand. Subscribe to BOI Thailand Updates Newsletter to get the information straight to your inbox!

Necessary Licenses to Start Medical Business in Thailand

To start a medical business in Thailand, you may require various licenses, depending on the type of business you operate. Here’s an overview of the different licenses and the respective issuing authorities:

1. Medical Service Business License

• Applicable to service-based businesses such as rehabilitation centers and nursing homes.
• Issued by the Department of Health Service Support.

2. Factory License or Business Establishment License

• Required if your business involves manufacturing and meets certain criteria, such as having 50 or more machines or employing 50 or more people.
• For factories located in an industrial area, you’ll also need Factory permission and incentives from the Industrial Estate Authority of Thailand.
• If your business does not meet the criteria for a factory license, you can apply for a Business Establishment License from the Local Administration Organization.

3. Science Laboratory Capacity Certificate

• Necessary for conducting clinical research activities.
• Issued by the Department of Medical Science.

4. Permission from the Food and Drug Administration (FDA)

• Required before marketing medical equipment, pharmaceutical products, or medical food.
• Granted under the Thai Drug Act of 1967 (BE 2510).

These licenses are crucial to ensure compliance with the regulations and legal requirements for operating a medical business in Thailand.

Immigration Solutions to Start Medical Business in Thailand

The Foreign Working Act of 2008 mandates that foreign nationals seeking employment in Thailand must secure a work permit in advance, outlining the activities they are permitted or prohibited from engaging in. You should consult a leading immigration firm to obtain a work permit in Thailand.

However, the introduction of the SMART visa category has simplified the process of obtaining a work visa. This visa, approved by the Thai government on February 1, 2018, is designed to attract highly skilled foreign professionals and investors to work or invest in Thailand. It is available across various industries, including automotive, tourism, agriculture, robotics, and others.

Four categories of foreign nationals are eligible to apply for the SMART visa: experts, investors, executive management personnel, and startups. This visa offers numerous benefits and privileges, including a validity period of up to four years, exemption from obtaining a separate work permit, reduced reporting requirements to the Thai Immigration Service (only once per year), and the possibility of family reunification for the visa holder’s spouse and children.

The Bottomline

Thailand’s dynamic healthcare industry, ripe for growth and innovation, welcomes ambitious entrepreneurs like you. By skillfully navigating the efficient registration process, capitalizing on lucrative BOI incentives, adhering to licensing requirements, and safeguarding your intellectual property, you can forge a path to success in this flourishing sector.

At Konrad Legal, our expertise lies in assisting businesses in Thailand through their company incorporation and registration journeys. Reach out to us to discover how our tailored solutions empower your seamless entry into the thriving Thai medical and healthcare market. Email us at officer@konradlegal.com and seize the opportunity and register your Thai company today and start your medical business in Thailand right away!

Start Electric Vehicle Business in Thailand

 Why the EV Industry? This is because the Electric Vehicle Industry witnessed a growth of 311% in 2023, and, it is expanding rapidly.

Owing to the pool of benefits for Foreign Investors in Thailand from the Board of Investment in the form of Investment Promotions, the EV industry is attracting a high volume of FDI. The EV Industry landscape is now not only a local Thai playground but, has upscaled itself to be a global arena of investment.

Electric Vehicle Association of Thailand on the EV Industry

In a comprehensive report, the Electric Vehicle Association of Thailand (EVAT) has highlighted the remarkable expansion and promising outlook of electric mobility within Thailand.

The remarkable growth of Battery Electric Vehicles (BEVs) continued into 2023, with a significant surge in new registrations for electric cars. A total of 76,366 electric cars were registered, a substantial leap from the mere 9,678 units recorded in the previous year. Notably, overall new registrations for all types of EVs skyrocketed to an impressive 100,219 units, representing an exponential growth of 380% when compared to the 20,816 units registered in 2022.

Approval from the National Vehicle Electric Board of Thailand

Under the leadership of Mr. Srettha Thavisin, the Prime Minister, the National Electric Vehicle Policy Board (EV Board) convened a meeting to continue driving Thailand's transformation into a leading regional center for Electric Vehicle (EV) production. This initiative is fully aligned with the government's 30@30 strategy. The ambitious goal is for Thailand to produce Zero Emission Vehicles (ZEVs) constituting at least 30% of its total motor vehicle output by 2030. In terms of numbers, this equates to manufacturing 725,000 cars and 675,000 motorcycles.

The EV Board has given its approval to the second phase of the EV Package, dubbed EV 3.5, which will run for four years (2024-2027). This phase aims to foster ongoing growth in the EV industry and attract investments in EV manufacturing in Thailand, particularly from new players. The package encompasses support for investments across the entire EV industry ecosystem. Companies that previously participated in EV 3 are eligible to apply for these measures, provided they meet the stipulated conditions and regulations.

Additionally, the EV 3.5 package introduces additional incentives for electrical passenger cars. Cars priced up to US$ 200,000 will receive an excise tax reduction from 8% to 2%. Additionally, electrical passenger cars priced up to US$ 58,000 and imported as Completely Built-Up Units (CBUs) during the first two years (2024-2025) will benefit from an additional reduction in import duties of up to 40%.

Companies applying for this package will be subject to the condition that by 2026, EV production must domestically offset imported CBU vehicles at a ratio of 1:2, increasing to a ratio of 1:3 by 2027.

For both imported and domestically manufactured electric cars, the batteries must comply with Industrial Product Standards (TIS) and pass testing based on international standards at the Automotive and Tire Testing National Center (ATTRIC).

Therefore, the strong inclination of the Royal Thai government towards this transformation from fossil fuel vehicles to electric vehicles is clearly evident. Subsidizing purchases of electric vehicles is a great initiative to encourage citizens to select EVs during their next vehicle purchase. Isn't this creating a great ecosystem for EV business aspirants?

To register a BOI Company in Thailand, contact us!

What does the Board of Investment of Thailand have for the EV Industry?

The EV 3.5 package underscores the Thai government's steadfast dedication to establishing Thailand as a leading hub for electric vehicles in the region. This strategic initiative aims to attract new players to set up production facilities and encourages existing investors to pivot towards the electric vehicle industry. These endeavors will contribute to the sustainable growth of Thailand's automotive manufacturing sector, which currently holds the top position in ASEAN and ranks among the top 10 globally. Moreover, these measures align with Thailand's aspiration to achieve carbon neutrality by 2050, as expressed by Mr. Narit Therdsteerasukdi, the Secretary General of Thailand's Board of Investment and the Executive Committee Secretariat of the EV Board.

Beginning in 2022, the first phase of Thailand's Electric Vehicle Support Program (EV 3) witnessed the participation of 15 companies, encompassing manufacturers of electric passenger cars, pickup trucks, and motorcycles. This program has substantially contributed to the growth of the country's electric vehicle industry. From January to September 2023, the program's initial nine months saw an impressive 50,340 new EV registrations, representing a significant 7.6-fold increase compared to the corresponding period in the previous year.

Since 2017, Thailand's ongoing commitment to promoting EVs has attracted US$ 1.8 billion in investments, focused on the manufacturing of battery electric vehicles (BEVs), battery electric motorcycles, EV components and parts, and the establishment of charging stations.

What can we do for you?

We can help you start your business in the Electric Vehicle industry and avail the benefits from the Thai government and Board of Investment. For more than a decade, we have been facilitating foreign investors in registering their BOI-promoted companies in Thailand. Our inexhaustive scope of services is as follows:

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

How to Register a Business in Thailand?

 

As a foreigner, if you are planning to register a company in Thailand, you must have professional guidance before proceeding. It should start from the basic regulations of company registration in Thailand. Henceforth, you must know that various legal and authoritative regulations vary significantly for foreigners starting a business in Thailand. 

You may have read various articles that suggest the information that you must have to register your company in Thailand. But in this article, we will be serving something very different. It is because this article does not originate from theoretical knowledge and concepts. But, it outlines our practical experience in the domain for more than a decade.

For your better understanding, we have given this article a FAQ (Frequently Asked Questions) form. Simply scroll to find the answers to the questions to help you make your decision to register your company in Thailand.

How to decide the type of company I should register in Thailand?

The process of company registration in Thailand stringently depends on various factors. Primary determinants are the type of business you want to do, and your investment potential. Most importantly, the industry you want to start your business in is one of the major determinants. This is because various government agencies offer privileges and hold schemes for businesses in their specific or target industries.

For example, suppose you plan to start a manufacturing or industrial company. In this case, you can avail benefits from the Industrial Estate Authority of Thailand (IEAT). Additionally, privileges from the Board of Investment (BOI) of Thailand are active for businesses in more than 20 industries. The benefits from such organizations cover a great range of tax and non-tax benefits. Such benefits ease the registration and continuity of businesses in Thailand both for Thai and foreign investors.

If you are a Thai business aspirant, starting small as a sole proprietorship firm is always wise. However, if your business model, investment capacity, and liability patterns compel you to a higher level, you may go for a Limited Liability Company or LLC structure. 

For foreign investors, there are various types of business structures available. However, in most cases, you must have a Thai partner as one of the co-owners of the company. If you already own a company and want its presence in Thailand, you can go for a Branch or Representative office. To start from scratch, opt for a private or public limited company in Thailand. Note that you will need Thai partners in both of these cases. But, if your business gets eligible for IEAT or BOI Thailand promotions, this mandate fades away. A Foreign Business License in Thailand also facilitates a foreign investor to hold the majority of shares.

What are the restrictions for foreigners in registering a company in Thailand?

The primary restriction for foreign investors is that they cannot start a sole proprietorship business in Thailand. Therefore, this calls for the primary requirement of having a Thai shareholder in the business. Additionally, there are restrictions laid by the Foreign Business Act of Thailand that prevent foreign investors from doing business in certain specific industries.

However, such restrictions never prevent a foreigner from doing business in those industries. All they have to do is apply for a foreign business license along with a Thai shareholder. Henceforth, they have the equivalent rights as that of a Thai citizen to register and operate any business in Thailand.

What is the Capital Requirement for Company Registration in Thailand?

The capital requirement for Company Registration in Thailand, the major governing factors are as follows:

1. Type of company you want to register in Thailand – LLP, LLC, Joint Venture, Branch Office, or Representative Office.
2. Number of partners or shareholders in the business.
3. Number of foreign employees you want to bring to Thailand.
4. Your Nationality! It is because if there exists any double-tax or bilateral trade treaty between your nation and Thailand, you may get some investment benefits.

Based on these primary pointers, you can calculate the capital requirement for Company Registration in Thailand. To reach the exact figures,  you must consult with a corporate law firm with special expertise in Thai accounting and tax standards and protocols. 

Please note that the Capital Requirement for Company Registration is not the same as the cost to register a company in Thailand.

Capital Requirement is the funds that you need to be ready with as per the regulatory and authority norms. Furthermore, it depends upon the type of business you want to do in Thailand. On the other hand, the cost of registering your company in Thailand involves the expenses behind the capital requirement along with the cost of leasing or purchasing business premises, license fees, consultation and travel expenses, etc. We can help you identify the difference in these figures. Simply email us at officer@konradlegal.com with your company registration plans in Thailand. 

How to expand existing business in Thailand?

If you already own a business in your native country or anywhere in the world, you can easily expand its branches in Thailand. There are various methods to do so. The easiest forms that enable a foreign investor to have 100% foreign ownership in their business in Thailand are as follows:

The first option is opening a Representative Office in Thailand. It grants 100% foreign ownership and the cost of incorporation of such a company is lesser than other business forms. However, there is a restriction! You cannot conduct any financial transactions like selling products or services through a representative office.

Secondly, you can start a branch office in Thailand. Through a branch office, you can execute trading activities. However, there is an initial permission to operate for 5 years that is subject to extension, under the discretion of the Department of Business Development in Thailand.

Other methods of introducing your business in Thailand are through a Regional Office, or by online promotions.

How much time it takes to register a company in Thailand?

Again this depends on the type of company structure you are planning to register in Thailand. A simple limited company registration can be completed within 5-7 working days, whereas, a higher form of business structure can take up to  60 days to register.

Furthermore, registration of non-profits, foundations, or associations can take more than a year to complete and start functioning in Thailand. Additionally, this tenure also depends upon the level of your readiness with funds and regulatory compliance at the time of registering your company in Thailand.

What are the most important factors to keep in mind during Company Registration in Thailand?

You are a business aspirant, therefore, explaining to you to be careful about documentation, truthfulness or other similar stuff won’t make any sense. That’s what we believe in owning to the faith in your potential.

As a leading corporate law firm in Thailand, we take it to be our pleasure to guide you through the mistakes that we have seen many foreign investors make. So with the wish that you don’t repeat the same, we are listing the same as follows:

• Never think of opting for a Nominee Shareholding structure for your business in Thailand. It is strictly forbidden as per Section 35 of the Foreign Business Act and can attract imprisonment of up to 3 years and/or a penalty of up to 1 million Thai Baht.

• Never think of concealing or falsifying your identity for company registration in Thailand as this can lead to grave legal and administrative sentences.

• During the running of your business in Thailand, if your foreign business license gets suspended or revoked for any reason, stop using it immediately. Otherwise, you will be sentenced to imprisonment and a penalty worth up to 1 million Thai Baht.

• If you hold a valid foreign business license for a particular business, but participate in a business activity under another license permitted to carry different trade, it is illegal. You may attract a penalty of up to 1 million Thai Baht and imprisonment of up to 3 years.

• A penalty of up to 1 million Thai Baht and imprisonment of up to 3 years is applicable if you plan to operate a business in Thailand without a proper foreign business license.

• In many cases, there are various business operations or activities that are open only to Thai nationals. However, you may be involved in those businesses with prior approval from the Director-General or Ministry of Commerce. Without this approval, starting or operating any such business is a big offense in Thailand attracting penalties and imprisonment.

Therefore, we always advise our clients to follow Thai regulations and protocols while registering and operating a business in Thailand. There are various advantages of doing business in Thailand, and the kingdom welcomes foreign investors with open arms, but, the laws are pretty stringent here. 

To access all solutions under one roof, reach out to us. Along with holding an identity as a leading corporate law firm in Thailand, we have professionals holding expertise in accounting, taxation, and payroll services for foreign investors in Thailand.
Email us your business plan at officer@konradlegal.com and our team will get in touch with you within a working day.