Are you an ambitious founder or leading a creative team and willing to start your venture overseas? Then either start your own or invest in startups in Thailand. It is worth mentioning that the startup ecosystem of Thailand ranks 53rd globally, 11th in the Asia Pacific region, and 4th in South East Asia. We understand that your plan to invest in the startup ecosystem of Thailand can not be simply on the basis of these ranks. Therefore, read through this article to access enough information that can be useful to process your plan to invest in startups in Thailand.
Basic Considerations to Invest in Startups in Thailand
The appeal seems completely understandable once you start to consider Thailand from a cost of living, infrastructure, and investment perspective.
Considering the caliber of its infrastructure, Thailand has an astonishingly low cost of living. The nation is far ahead of the curve in luring tech talent from all over the world thanks to virtually ubiquitous high-speed internet, a reliable power grid, and affordable housing, food, healthcare, and transportation.
These elements are not specific to Thailand, of course. But what distinguishes Thailand from other countries and attracts foreign business investors is the industry and government support, as well as all the working advantages it provides startups that register in the nation.
However, these were the basic considerations that most foreign investors are already aware of. Let us take you through some recent developments in the Thai startup ecosystem to educate you about the latest trends in the system.
Recent Developments in the Startup Ecosystem in Thailand
Thailand is in the process of changing from an industrial and export-based economy to a service- and knowledge-based one. The ambitious Thailand 4.0 strategy has been launched by the Thai government in order to accomplish this transition. By assisting SMEs, creating a highly skilled workforce, investing in 21st-century infrastructure, and fostering innovation, the Thai government hopes to promote growth in future growth industries ranging from biotechnology to digital.
This initiative of the Royal Thai government is backed up by the Board of Investment of Thailand. As it is all known to us that whenever any aspect of an economy aims toward development, it leads to the emergence of new practices and processes in the industry. For example, Thailand 4.0 targets automation in production methodologies. For this, the involvement of experts in the fields of artificial intelligence, IoT, and cloud computing is mandatory in the process.
“A Complete Digital Solution for Automation of your Dairy Farm in Thailand” – won’t this be a good idea for your startup in Thailand?
Anyways, let us check through some benefits that the startup owners or investors can get in Thailand this year:
- Startup Owners can be eligible for tax reductions of up to 80% of their annual earnings.
- Venture Capitalists or startup investors too are eligible for an 80% tax reduction.
- Startups can earn investment incentives up to 60% of their investment value.
Please note that startups in Thailand will be eligible for these benefits only if they focus on the target industries. However, isn’t it nice to learn that you can save up to 80% of your tax? Use this fund in the development of your startup business in Thailand to the next level!
Target Industries for Startups in Thailand
A startup must engage in the targeted activities endorsed by the pertinent government agencies as mandated by the Committee on Policy for National Competitive Enhancement for Targeted Industries. Additionally, they must rely on technology as the foundation for their production process and services in accordance with rules established by the Director-General of the Revenue Department. The National Science and Technology Development Agency (NSTDA) and the National Innovation Agency (NIA) are the government entities in charge of issuing the certification of the target activities.
The Announcement of the Committee on Policy for National Competitive Enhancement for Targeted Industries No. 1/2561, classifies them as follows:
If your startup business in Thailand targets any of the above activities or industries, assuringly you will receive the maximized support from the Royal Thai Government. Additionally, you will be eligible for various tax and non-tax benefits from the Board of Investment and Revenue Department of Thailand.
What else to know before investing in a Startup in Thailand?
Thailand’s startup ecosystem has been growing rapidly in recent years. It is all due to a supportive government, a young and tech-savvy population, and a vibrant entrepreneurial community. Here are some key factors contributing to the growth of Thailand’s startup ecosystem:
- Government support: The Thai government has been actively supporting the growth of the country’s startup ecosystem. It is implementing various initiatives, the establishment of startup funds, tax incentives, and regulatory reforms. The government has also been investing heavily in infrastructure development to create an environment that is conducive to entrepreneurship.
- Growing tech-savvy population: Thailand has a young and tech-savvy population, with high smartphone penetration and internet usage rates. This has created a large market for digital products and services, attracting many entrepreneurs and investors to the country.
- Increasing venture capital investment: The availability of venture capital funding has been a key driver of Thailand’s startup growth. In recent years, there has been a surge in venture capital investment in the country. This is due to the involvement of local and international investors pouring money into promising startups.
- Supportive startup community: Thailand has a vibrant startup community. The kingdom holds a number of co-working spaces, incubators, and accelerators. All these facilitate mentorship, networking opportunities, and funding to early-stage startups.
Some of the most successful startups in Thailand include fintech firm Omise, e-commerce platform eCommerce, and online fashion retailer Pomelo. With all these factors, Thailand’s startup ecosystem is poised for continued growth in the years to come.
To get complete legal, accounting, and taxation support in setting up your startup business in Thailand, reach out to us. Email us at [email protected] and our team will get back to you within a working day. We can help you with the immigration process in Thailand as well!
