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.

How to Register a Small Business in Thailand in 2024?

 

As one of the leading corporate law and accounting firms in Thailand, we frequently receive consultation requests from Thai and foreign nationals. Most investors, especially foreigners, seek small and medium-sized business registration consultations. This article written from the inputs of our legal consultants will guide readers throughout the process of registering small businesses in Thailand in 2024.

What is a Small Business in Thailand?

Various determinants decide the size of a business. Sometimes, it can be the amount of investment or registered capital, manpower, or infrastructure required to conduct the business or the government identification of the scale of the business.

When in Thailand, small and medium-sized business encompasses all these factors. If your planned business holds the following features, you can identify it as a small business idea in Thailand:

Therefore, it is not only about the investment, but majorly, the annual revenue and number of people working for the business that primarily define the scale of a business.

So what will be the scale of your business in Thailand – micro, small, or medium? If you are still confused, feel free to connect with the best corporate law consultants in Thailand!

Process of Registering a Small Business in Thailand in 2024

The process of business registration in Thailand of all scales typically follows the same route. Talking about 2024, there has not been any change in the process as such. However, there are certain additions to the benefits for foreign investors from the Board of Investment of Thailand. A comprehensive description of the process of small business registration in Thailand in 2024 is as follows:

Step 1: Choose a Legal Structure and Check your Capital

When starting a business, decide on an appropriate legal structure, such as a limited company, that requires registration with the Ministry of Commerce. Note that foreign investors can never go for a sole proprietorship firm and they have to employ a Thai partner as a stakeholder for their business in Thailand.

Certain businesses may have minimum capital prerequisites. In cases where such requirements exist, ensure you possess sufficient funds to meet them.

For detailed and extended support, feel free to connect with the best business registration professionals in Thailand.

Step 2: Apply for Business Visa and Work Permit

To conduct business in Thailand, it is essential to secure the appropriate visa, typically a non-immigrant business visa. Subsequently, a work permit is also necessary.

For the most up-to-date information and requirements, it is advisable to consult the Thai embassy or consulate. Contact reliable business visa and work permit consultants in Thailand.

Step 3: Go for Business Registration

To formally establish your business, the initial step is to register it with the Department of Business Development, which falls under the jurisdiction of the Ministry of Commerce.

This process involves selecting a suitable business name, verifying its availability, and subsequently completing the registration formalities.

Step 4: Apply for Tax Registration

To ensure compliance with tax regulations, it’s essential to register with the Revenue Department for tax purposes. This process entails obtaining a tax identification number (tax ID) and familiarizing yourself with the tax liabilities and responsibilities associated with your business operations.

If you are a foreign investor, it will be a wise decision to go on a consultation with an experienced tax consultant and practitioner in Thailand.

Step 5: Select Location and Lease Business Premises

When it comes to your business, it’s crucial to select a location that aligns with your needs. If leasing space is part of your plan, be diligent in verifying that the lease agreements adhere to all relevant local regulations.

Step 6: Apply for Licenses and Permits

The specific licenses and permits required for your business may vary based on its nature. To ensure compliance, it is advisable to consult with appropriate authorities or enlist the assistance of a local consultant who can guide the process.

Step 7: Open a Corporate Bank Account

To register a business in Thailand, opening a business bank account is frequently a prerequisite.

There are certain legal considerations to be taken into account and the most important of them are as follows:

Foreign Business Act (FBA)

It is essential to familiarize yourself with the potential limitations outlined in the Foreign Business Act for Foreign Investors in Thailand. Certain business activities may be subject to restrictions, and in some cases, foreigners may need to acquire specific permissions to engage in certain business activities.

Land Ownership

Generally, foreign individuals are restricted from owning land in Thailand. However, alternative options exist, such as leasing land for extended periods. You may consult with 

Intellectual Property

To safeguard your intellectual property, consider registering trademarks and patents when appropriate. By taking these proactive measures, you can ensure the protection of your unique creations and ideas.

Small Business Ideas in Thailand in 2024

We can only help you with ideas based on the market dynamics and industry trends ongoing in Thailand. It is your capabilities, investment potential, and subject matter expertise that should guide you in selecting the most suitable business for you in Thailand.

From our experience, we have learned well that investors primarily focus on Return on Investment (ROI) when doing business in Thailand. Especially, foreign investors. Based on this ground, we have categorized our suggestions into three categories, viz, fast ROI, huge ROI, and steady ROI.

Fast ROI Generating Small Business in Thailand

In this category, we will share the business opportunities that can start bringing in profits for you quickly, as soon as you register your business in Thailand. Irrespective of the amount of profit, be assured that you will start making profits right away!

Consulting Businesses – All you need to do is gain industry insights, create some local contacts, and start guiding your clients in the industry you are specialized in. It can be an engineering or architecture consulting firm, financial consulting, or real estate consulting business.

Online Education Businesses – The digital ecosystem of Thailand has leaped to a growth of almost 75% since 2021 in terms of penetration and user activation. People here are now relying greatly on online support for their purchases, banking as well as education. Therefore, launching online courses or coaching classes will need a relatively small investment and team but you will start making money very quickly.

Online Business Application Development – As already discussed the digital ecosystem of Thailand is evolving rapidly. Therefore, along with users, many businesses are ready to render their services to the Thai market. To do so, they need to connect with people through the digital interface, For this, they will need websites and applications. If you are planning to start a website or application development agency in Thailand, you will surely start making money very quickly.

High ROI generating Small Business in Thailand

This section will present you with ideas for small businesses in Thailand that will require a relatively small amount of investment and capital but can yield high ROIs. Depending upon your business goal, it can be a short or long-term venture, but as long as your business survives, it will ensure profit for you.

Health and Wellness Training – Thailand is one of the most sought-after locations in the world where visitors from across the world visit for mental and health rejuvenation. According to projections, the industry will grow by 9.35% by 2027. Therefore, this one-time-investment type of business can ensure high ROI for you in Thailand.

Travel and Tourism Business – We all know that Thailand is a global tourist hub. Owing to this reason it is continuously registering a CAGR growth of almost 4% annually in a consistent pattern. This makes the travel and tourism business a source of high ROI that can go higher if you can take it online. To start with the minimum investment, start as a tourist guide!

Here is how you can start a travel business in Thailand!

Designing, Copywriting, and Online Marketing Services – All you need is a website to market your services. Rest, the internet will do it for you! As the digital ecosystem in Thailand is growing rapidly, many businesses are switching from conventional to digital marketing processes. To implement the same effectively, they will need design, copywriting, and online marketing services. Generally, these services are outsourced to save the investment on resources and manpower. 

Steady ROI generating Small Business in Thailand

Be it a short-term or long-term venture, these businesses will constantly generate revenue for you. Typically, such types of steady ROI-generating businesses must align with the regular and daily necessities or lifestyle of the local region. It may not be always true either!

IT and Digital Support – Although the information technology and digital infrastructure of Thailand are expanding rapidly, yet, there is still a long gap between the requirements and local skills in meeting so. Therefore, businesses providing IT and Digital support will continuously generate revenue ever since its inception. Businesses can have a fixed set of clients that will be paying for the services on a monthly, quarterly, half-yearly, or annual basis.

Food and Beverage Business – In addition to being a tourist hub, Thailand is also a place of permanent residence for many foreigners. Therefore, the variety of cuisine that your food business can serve in Thailand can be wide and welcomed warmly by people staying there. You can encash the food fidelity of tourists and residents of Thailand to generate a steady ROI around the year.

Home Improvement or Handyman Services – This is a great source of constant revenue generation as this type of business can expand its scope of operations across a wide range. Starting from small furniture, mechanical, or electrical repairs, the scope can extend to complete home renovations generating a steady source of revenue.

What Small Business Do You Wish to Register in Thailand in 2024?

Now, you know the process with the most promising small business opportunities in Thailand. Depending upon your budget, willingness to spend on manpower, and target for ROI, either you can select from our list of suggestions or move to other options as well.

Whatever your decision, we would be delighted to assist you with our services to guide you through the best small business registration process in Thailand. For free consultation, simply email us at officer@konradlegal.com. Along with business registration in Thailand, our scope of services extends to delivering the following to our local and international clients:

1. Accounting Services for Thai and Foreign Businesses in Thailand
2. Tax Registration and Filing for Thai and Foreign Businesses in Thailand
3. Payroll Management and Assistance to Thai and Foreign Businesses in Thailand
4. Documentation, Licensing, and Notarization for Thai and Foreign Businesses in Thailand

All you have to do is to contact us with your business idea. Henceforth, our team will prepare, compile, and assist you throughout the business registration process. After incorporation, we have an expert team to look after your bookkeeping, accounting, taxation, and payroll. You may call and book an appointment at +66 2626-0277/0266 during our office hours, i.e., Monday – Friday from 09:00 AM to 06:00 PM.