Thailand Company Incorporation

Despite bouts of political instability,Thailand is still acknowledged as one of the best corporate solutions in southeast Asia today. Points to consider with include:

Thailand is a key member of the Association of Southeast Asian Nations (ASEAN), giving it excellent access to a market of more than 500 million people.

Thailand is a member of the World Trade Organisation (WTO), which sets the standard for Thailand's investment policies related to Thailand's company incorporation.

According to the 2010 Doing Business Survey by the World Bank, Thailand is the world's 12th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

DTZ's 2010 Global Occupancy Cost Report, emphasizes that Thailand is the second most affordable place to operate a business in the Asia Pacific Region. With a total occupancy cost of only US$23.20 per sq ft per annum. Thailand and more specifically Bangkok is a great place to locate an office.

Thailand's abundant natural resources, including oil and gas, and its cost-effective labour force are attractive to foreign investors interested in Thailand company incorporation.

Thailand is a world-renowned tourist destination, as evidenced by Travel + Leisure magazine's 2010 World Best Awards readers survey. When asked which city in the world provided the best tourist experience, the magazine’s readers voted Bangkok as the best in the world and Chiang Mai as the second best. Thailand company incorporation can enable entrepreneurs to capitalize on Thailand’s world-class tourist economy.

A 2006 survey conducted by the Japan External Trade Organization (JETRO) revealed that Thailand would be the 'optimal location for establishing a production/sales base in the coming five to ten years.

Thailand actively encourages foreign investment, especially in sectors which contribute to the development of skills, technology and innovation.

Thailand's Board of Investment (BoI) offers a range of incentives to support Thailand company incorporation, including both tax and non-tax incentives. Tax incentives include:

Corporate income tax relief and exemptions.

Zero import duties within the ASEAN Free Trade Area (AFTA), which entered into force on 1 January 2010 and comprises of Thailand, Singapore, Malaysia, Indonesia, Philippines and Brunei.

No local content requirements;

Permission to bring in expatriate workers;

No foreign equity restrictions in the manufacturing sector;

Permission to own land; and

v)

Ability to repatriate foreign currency from Thailand.

Investors in Thailand are eligible for assistance based on criteria laid down by the BoI. For a project whose investment capital - excluding the cost of land and working capital - is a maximum of US$13.3 million, the criteria are:

The value added is a minimum of 20% of sales revenue. Manufacturers of electronics parts may be exempt from this requirement;

Modern, efficient production processes and equipment must be used;

The ratio of liabilities to registered capital should not exceed 3 to 1 for a newly established project;

Activities must be environmentally-friendly.

Thailand has relaxed the limits of foreign shareholding in certain sectors to encourage foreign investors interested in Thailand company incorporation. For example, in the manufacturing sector foreign investors may hold a majority of shares

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