5 reasons why Thailand is a great place to start a company
21/04/2022
Known around the world as a prime tourist destination, with its beautiful beaches and scenery, great food and welcoming culture, Thailand is also fast rising on the list of the best business hubs to relocate to or start a company.
Thailand has been working hard to create a sustainable infrastructure which is now able to support and develop a resilient and innovative economy. By doing this, “the Land of smiles” has positioned itself as an attractive destination for entrepreneurs and companies looking to tap into the Asian Market.
Here is a list of the top five business advantages that Thailand has to offer and should be kept in mind when considering entering the Thai market.
Government support and incentives for foreign investors
Over the years, Thailand has developed an effective pro-investment policy, supported by an enterprising Board of Investment (BOI). Particular emphasis has been placed on free trade and tax incentives.
As a business-friendly destination, foreign investors and entrepreneurs in Thailand can benefit from a large number of privileges actively sponsored by the government, such as exemption from corporate tax or exemption or reduction of import duties.
In addition to this wide range of tax benefits, there are significant non-tax benefits available for foreigners such as the right to own land through a Thai limited company or the ability to own all the shares in a company by obtaining a foreign business license or a BOI promotion.
Furthermore, through the one-stop service center for visas and work permits, the BOI has made it easy for a sponsored company to obtain all the documents needed to start a business in a quick time frame.
Ease of doing business
The success of Thailand’s corporate governance is rewarded around the world every year, which further enhances its attractiveness as a destination for businesses. The World Bank Group’s Ease of Doing Business Report (2020) ranks Thailand 21st out of 190 countries. Thailand has been climbing the ranks over recent years and gained six points from the previous report due to excelling in areas such as minority shareholder protection.
Gateway to Asia
Thailand has a vibrant domestic market of nearly 70 million consumers with rapid growth in key sectors of the future economy, promising great business opportunities. But setting up a business in Thailand is also about choosing a strategic location in one of the world’s most exciting business regions.
Thailand offers excellent commercial proximity to some of the largest economic hubs in the world, such as India or China. It is also part of the economic cooperation program of the Greater Mekong Subregion (GMS). The GMS grants direct access to emerging economies that have managed to attract USD 20 billion of investment since its creation.
Last but not least, Thailand is a founding member of the Association of Southeast Asian Nations (ASEAN). ASEAN membership brings significant advantages to any entrepreneur who will be able to take advantage of a large and constantly expanding free trade area with agreements and partnerships with Australia, New Zealand, Japan and ongoing negotiations with the European Union.
Expat lifestyle
As mentioned above, Thailand has developed a modern infrastructure which can rival those of the traditional business hubs of Hong Kong and Singapore.
Thailand also excels in other areas which are important for those who are looking to establish a business and move to Thailand. While business is essential, you should not forget about living in Thailand as well.
Health care in Thailand is among the best in the world and has a great reputation for its service. Medical tourism is one of the fastest growing sectors in Thailand and has resulted in large numbers of people, from all around the world coming to Thailand for their medical needs.
You also cannot ignore all the beautiful beaches and resorts on offer throughout Thailand, easily reached by plane and public transport. Great food, vibrant nightlife and plenty of great real estate and high quality international schools are also readily available.
EEC and Digital 4.0 — a forward-looking economy
Thailand’s ambition to gain momentum can be seen through the introduction of the Thailand 4.0 business model, which promotes an innovative-driven and valued-based economy. This ambitious plan to take Thailand “to new heights”, as announced by the BOI, focuses on key industries that the country seeks to develop in order to become one of the most coveted business hubs.
In 2017, the Government established Thailand’s Eastern Economic Corridor (EEC), as, “The Prime Gateway to Asia” which is at the heart of the Thai 4.0 project. This special economic zone is undergoing massive investment to create an efficient connection between land, sea and air through innovative infrastructure and to support what Thailand hopes will be an unrivaled center for trade, industry and tourism.
Conclusion
When it comes to business, Thailand has a lot to offer entrepreneurs. This could be a strategic bet in the current economic climate, supported by strong corporate governance that is firmly committed to involving you in Thailand 4.0.
With a well thought-out business plan and appropriate legal support, an entrepreneurial adventure in Thailand could be exciting and fruitful.
To Learn more about starting a business in Thailand, why not take a look at our market entry services. Additionally, you can book a consultation with one of our market entry experts.
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Please note that this article is for information purposes only and does not constitute legal advice.
