Thailand is now regarded as the region’s most striking destination for foreign investment. Thai government has come up with different strategies and is now providing many enticements and incentives to lure the foreign investors. These incentives comprises of tax exemptions and various substantial concessions, import duty exemptions and permission to own land. Still, ownership of land by the foreigners is not allowed outright.
Foreign Business Act governs and outlines the categories and types of businesses which are open to the foreigners. The Act also forms the regulations and laws and restrictions for specific segments such as real estate, insurance business and financial services. In order to run the business effectively in Thailand, you need knowledge about its Foreign Business Act, tax laws and legal system.
It takes 33 days on an average to setup a business in Thailand as compared to a minimum of 38 days in most of the other countries. Construction and manual labor and is very reasonable as compared to most of the other nations. The large, intelligent and adaptable workforce upsurges the potential for success and development of Thai business. Some of the advantages of starting a business in Thailand include:
An Open Economy
The society, specifically the business community, is very warm and welcoming to foreign companies and investment wishing to institute operations in the country. Establishments setting up business in Thailand will find the systems and the infrastructure ready to begin operating effectively.
Diversified Manufacturing Sector
Thailand has a very active and large manufacturing sector which produces a diverse range of goods which includes fish products, toys, furniture, rubber and jewelry. These manufacturing and FMCG’s have made Thailand a regional leader in commerce and trade.
Pro-active Policies of the Government
The government here is an innovative and forward-thinking body that aggressively encourages socioeconomic progress and development. The Thai authorities strongly embolden the foreign investment in both financial and in the local workforce, and its policies over last few years has invited foreign organizations and businesses.
Adaptable and Cost-effective Workforce
The country has an adaptable and large workforce. As per the BOI(Board of Investment), literacy rates reach 94 percent for men and 90 percent for women, which allow foreign investors to find intellectual workforce with the prospects of further development. Apart from being educated and flexible, the Thai workforce is also one of the most cost-effective in terms of pay in the region with the daily wage averaging to 203 THB which is equivalent to as low as $6.