Thailand is fast becoming the business location of choice for most foreign entrepreneurs today. The World Bank Group itself has recognised the impressive performance that the Land of Smiles has delivered in recent years in terms of improving the business climate both for local and foreign entrepreneurs. The World Bank has in fact placed the country on the 26th spot on its Doing Business 2018 report1 released in November last year.
It is indeed safe to say that Thailand makes for a good investment destination for any foreign business owner looking to make it big in the Asian market. Here, we list down eight great reasons that will attract any foreign business owner to set up shop in Thailand:
- Strategic location
Thailand is positioned between India and China2, which many foreign businesses find a strategic entry point to penetrate the booming Asian market. Such good location makes it easier for foreign business owners to access the ASEAN free trade area.
- Aggressive reforms from the government
Having a government that supports the well-being of small and medium enterprises is an attractive factor for any foreign entrepreneur. The Thai government has certainly recognised this, which is why in the past year alone, it has made considerable efforts in improving the country’s business environment, adopting a total of eight reforms which is said to be a record breaker for the country3. All these reforms were geared towards removing the obstacles that make doing business in the country more challenging.
- Bolder moves to transform the country digitally
The Thai government has launched initiatives aimed at utilising digital technologies to improve social-economic activities4, particularly in creating new innovations, developing infrastructure, and transforming the agriculture sector. Foreign investors will find it easier to run a business with more convenient access to a stable national broadband network and other digital resources.
- Tax incentives from the BOI
Foreign business owners thinking of incorporating as a BOI-sponsored company are offered significant tax breaks when they start a business in biotechnology, logistics, digital, biofuels, smart electronics, next-generation automotive, and community enterprises industries5. They can be entitled to tax incentives such as a 50-percent tax reduction for five years or double tax deductions from electricity, transport, and water supply costs.
- Competent and talented pool of employees
Most foreign entrepreneurs who have started businesses in Thailand consider the country’s industrious people as one of its main assets. Thai employees are highly qualified and educated, too, and most locals can also speak in English. As a foreign business owner, it would be more cost-efficient for you to hire local employees as they have the same level of education and experience as their foreign counterparts at a much lower cost.
- Availability of new and existing industries
The Thai government has prioritised developing key sectors that continue to contribute immensely in the country’s economic growth6. You can enjoy great incentives when you start a business in agriculture/agro-industry, automotive, alternative energy, fashion, electronics and ICT, and in other industries such as healthcare, entertainment, and tourism.
- Flexible and friendly business landscape
Thailand has one of the most flexible business environments today. This means you can put up whatever size of business you have in mind, may it be a startup, a small or medium-sized company, or a stand-alone business. No matter the business size, you can rest assured that you can start and operate your business successfully in Thailand.
- A myriad of business entities
Foreign entrepreneurs who are thinking of company incorporation in Thailand are offered a wide range of business structures that can fit the nature of business they want to set up. Foreigners can 100% own their business as long as they meet the qualifications and compliance requirements needed. You can choose to be a BOI-promoted company or register as a company under the US Treaty of Amity. You can operate as a branch or a representative office, a limited company, or a holding company.
Take advantage of these opportunities when you start a business in Thailand. To make the process hassle-free, make sure to partner with a competent company incorporation firm.
Why hire a company incorporation firm
It could be quite complicated to take on the business registration yourself when incorporating in Thailand. It is encouraged to partner with a local firm to handle all your business registration requirements to avoid any compliance problems. Reputable firms like Reliance Consulting have established connections in the industry and know the ins and outs of company incorporation in Thailand by heart, thanks to their experienced specialists and years of industry experience.
Keep these reasons in mind and make sure to hire a competent company incorporation firm when thinking of setting up in Thailand. Starting a company in this side of the globe just might be your best business decision yet.