Registering an internationalcompany in Thailand opens up a world of opportunities. This burgeoning global investment center offers a strategic location, a talent pool with English proficiency, and competitive labor costs. With the assistance of the Thailand Board of Investments and its enticing incentives, establishing a business in Thailand is a path to success.
Government Support and Investment Incentives in Thailand
The Thailand Board of Investments (BOI) offers substantial tax incentives, support services, and import duty exemptions or reductions to encourage activities that contribute to the nation’s development objectives and attract foreign investment to Thailand.
On September 6, 2019, Thailand introduced a stimulus package titled “Thailand Plus” intended to attract foreign investors to incorporate their overseas companies in Thailand. Notably, investors employing highly skilled personnel in STEM sectors are eligible for a 200% Corporate Income Tax (CIT) deduction for training expenses associated with initiatives endorsed by the Ministry of Higher Education, Science, Research, and Innovation.
Additionally, the Thailand Plus initiative grants 200% CIT deductions to businesses utilizing advanced technology during the 2019-2020 fiscal year, with an additional five years of 50% CIT deductions for investments exceeding 1 billion Thai Baht ($32 million USD). In the Eastern Economic Corridor (EEC), a special economic zone, investors can take advantage of CIT exemptions for the first thirteen years and a 50% CIT deduction for the subsequent five years. This robust government support enables foreign investors to enter the Thai market with ease.
Strategic Geographical Position
Thailand’s strategic location offers entrepreneurs and investors who want to set up abroad companies in Thailand a compelling advantage for entering the market.
Thailand is a member of the Association of Southeast Asian Nations (ASEAN) and is strategically located between China and India, which makes it an ideal trading partner for these two economic powerhouses.
Accessible trade routes connect Thailand to Indonesia, Singapore, Malaysia, the Philippines, Vietnam, Brunei, Laos, Cambodia, and Myanmar, which is advantageous for investors establishing businesses in the country.
Thailand has the distinction of being one of the founding members of the ASEAN region.
Moreover, Thailand actively participates in the development of the ASEAN Free Trade Area (AFTA). On January 1, 2010, the AFTA initiative was initiated by the six original ASEAN members: Thailand, Singapore, Malaysia, Indonesia, the Philippines, and Brunei. Countries participating in AFTA commerce were exempted from import duties.
The central location of Thailand in Asia provides simple access to the region’s thriving economies. This includes tapping into its flourishing domestic consumer market of more than 68 million individuals.
This strategic location provides the ideal launching pad for businesses and recruitment efforts, positioning your company at the center of the ASEAN region.
English: The Business Language in Thailand
While Thai is the official language of Thailand, a significant portion of the population is fluent in English. The language is taught extensively at the nation’s leading universities, facilitating the recruitment of highly proficient Thai employees.
In addition, Chinese and Japanese are prevalent in school curricula, and the number of graduates with foundational knowledge in German and French is increasing. This linguistic diversity facilitates international business communications.
To ensure effective communication and cultural comprehension, students should have a basic understanding of the Thai language and culture despite the growing demand for business studies.
Competitive Labor Costs
The advantage of competitive labor costs in comparison to Western nations is a factor that encourages business expansion into global markets.
Beginning on January 1, 2020, the minimum wage in Thailand will range between 313 and 336 Thai Baht (approximately USD 10). However, the daily minimum wage varies based on experience and talent level.
Employees may work up to eight hours per day and up to forty-eight hours per week. Employees of a Thailand-based company receive a minimum of thirteen national holidays per year and a minimum of six days of annual leave after one year of continuous service.
The availability of competitive labor costs enables business proprietors to allocate additional funds to various business initiatives.
Thailand remains dedicated to advancing its economy, fostering technological advancement, and enhancing international relations. It is not surprising that the country is attractive to foreign investors.
How can Iris International assist you?
Thailand’s proactive approach to providing tax incentives, its strategic geographic location, its linguistic adaptability, and its competitive labor costs make it an excellent location for company formation. Iris International is your partner in realizing a seamless business formation in Thailand, thanks to our knowledge and extensive support. Our services include comprehensive guidance to ensure that you capitalize on the market’s advantages. Embrace Thailand’s opportunities and set sail for success with Iris International by your side.
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