Thailand, a rapidly developing nation with a burgeoning healthcare industry, holds immense potential for entrepreneurial enthusiasts seeking to explore business ventures in this domain. The country’s expanding population and escalating demand for high-quality medical services create an alluring opportunity for entrepreneurs to establish healthcare enterprises. However, starting a medical business venture in Thailand demands meticulous planning and execution due to its complexity. This concise guide aims to provide valuable insights and facilitate the journey of aspiring entrepreneurs by addressing the crucial question – “How to start a medical business in Thailand?”
The Aging Society of Thailand needs special Medical Facilities!
Thailand’s healthcare industry is expanding, but its aging population is also growing. This trend is not unique to Thailand as it happens in many countries. Consequently, the demand for healthcare services in Thailand will increase. Thailand’s aging population is projected to surpass that of Europe and the US by 2045. Accordingly, the need for healthcare services will continue to rise.
The Healthcare Sector of Thailand is Booming!
Thailand has made significant strides in enhancing access to medical care and public healthcare. Substantial investments in time and resources have facilitated easier utilization of healthcare services. Government expenditure on healthcare has experienced a rapid increase, growing from below 50% in 1995 to approximately 80% in the present. Furthermore, Thailand implemented a universal healthcare system in 2002, which has proven to be highly successful. As an outcome, over 99% of Thai citizens now benefit from public healthcare access.
The extensive network of healthcare facilities in Thailand comprises over 1,000 government hospitals and 300 private hospitals, offering a diverse range of services and treatments. This extensive network strongly suggests that the public healthcare system in Thailand effectively serves the needs of the majority, if not the entirety, of the population.
Comprehensive Framework to Start Medical Business in Thailand
To successfully start a company in Thailand, it is advisable to follow a systematic step-by-step process. Begin by selecting the most appropriate company structure and reserving a desired name through the Department of Business Development. Proceed to create the articles of association and convene a shareholders’ meeting. Subsequently, register the company and acquire a tax identification number. For foreign directors or employees, it is essential to obtain the necessary visas and work permits. By adhering to this organized approach, you can ensure a smooth and efficient company formation process in Thailand.
Although Thai laws impose restrictions on foreign ownership, medical companies can overcome these challenges in two ways:
Option 1: Obtaining a Foreign Business License (FBL)
To obtain an FBL, medical companies must secure approval from the Foreign Business Committee and the General Director of the Department of Commercial Registration.
Option 2: Seeking Approval from the Thailand Board of Investment (BOI)
Medical companies can also seek approval from the BOI, which offers various incentives and benefits to foreign investors.
By following these guidelines and exploring these options, medical companies can successfully establish their presence in Thailand and navigate the regulatory landscape.
BOI Promotion to Start Medical Business in Thailand: Check Eligibility!
To obtain Board of Investment (BOI) approval, ensure that your intended medical activity falls within the seven eligible categories:
If your proposed activity qualifies, submit the BOI license application online. BOI officers will conduct an initial application evaluation. If your application receives preliminary acceptance, company representatives or directors must attend a meeting with a BOI expert committee within ten (10) days of the application to deliver an oral presentation.
The project will undergo a subsequent evaluation 90 days after the meeting to determine whether the BOI certificate will be granted.
Why is BOI Certification Helpful for Medical Business in Thailand?
The Board of Investment (BOI) certification in Thailand offers substantial benefits that extend beyond tax incentives:
Tax Benefits
- BOI Certification exempts companies from paying corporate income tax for a period spanning 3 to 8 years, contingent on the nature of their business activities.
- Provision of availing a 50% reduction in corporate income tax for a maximum duration of 5 years.
- Waiver on Import taxes for machinery and raw materials employed necessary for research and development projects.
Additional Advantages
- 100% Foreign ownership of company shares is permitted.
- Foreign investors are encouraged to explore investment opportunities.
- Provision to bring in foreign technicians and experts to contribute their expertise in Thailand.
- Facilitation of international financial transactions owing to the provision of unlimited foreign remittance.
- Ownership of land is possible, subject to project approval, enabling long-term investment and development.
Basic Incentive for Eligible Medical Businesses in Thailand
The Board of Investment (BOI) provides numerous benefits to support and attract investment projects that align with the government’s development goals. These incentives, which were previously mentioned, are designed to encourage investment in Thailand.
We take it to be our responsibility to update our audience with the benefits and announcements of BOI Thailand. Subscribe to BOI Thailand Updates Newsletter to get the information straight to your inbox!
Necessary Licenses to Start Medical Business in Thailand
To start a medical business in Thailand, you may require various licenses, depending on the type of business you operate. Here’s an overview of the different licenses and the respective issuing authorities:
1. Medical Service Business License
- Applicable to service-based businesses such as rehabilitation centers and nursing homes.
- Issued by the Department of Health Service Support.
2. Factory License or Business Establishment License
- Required if your business involves manufacturing and meets certain criteria, such as having 50 or more machines or employing 50 or more people.
- For factories located in an industrial area, you’ll also need Factory permission and incentives from the Industrial Estate Authority of Thailand.
- If your business does not meet the criteria for a factory license, you can apply for a Business Establishment License from the Local Administration Organization.
3. Science Laboratory Capacity Certificate
- Necessary for conducting clinical research activities.
- Issued by the Department of Medical Science.
4. Permission from the Food and Drug Administration (FDA)
- Required before marketing medical equipment, pharmaceutical products, or medical food.
- Granted under the Thai Drug Act of 1967 (BE 2510).
These licenses are crucial to ensure compliance with the regulations and legal requirements for operating a medical business in Thailand.
Immigration Solutions to Start Medical Business in Thailand
The Foreign Working Act of 2008 mandates that foreign nationals seeking employment in Thailand must secure a work permit in advance, outlining the activities they are permitted or prohibited from engaging in. You should consult a leading immigration firm to obtain a work permit in Thailand.
However, the introduction of the SMART visa category has simplified the process of obtaining a work visa. This visa, approved by the Thai government on February 1, 2018, is designed to attract highly skilled foreign professionals and investors to work or invest in Thailand. It is available across various industries, including automotive, tourism, agriculture, robotics, and others.
Four categories of foreign nationals are eligible to apply for the SMART visa: experts, investors, executive management personnel, and startups. This visa offers numerous benefits and privileges, including a validity period of up to four years, exemption from obtaining a separate work permit, reduced reporting requirements to the Thai Immigration Service (only once per year), and the possibility of family reunification for the visa holder’s spouse and children.
The Bottomline
Thailand’s dynamic healthcare industry, ripe for growth and innovation, welcomes ambitious entrepreneurs like you. By skillfully navigating the efficient registration process, capitalizing on lucrative BOI incentives, adhering to licensing requirements, and safeguarding your intellectual property, you can forge a path to success in this flourishing sector.
At Konrad Legal, our expertise lies in assisting businesses in Thailand through their company incorporation and registration journeys. Reach out to us to discover how our tailored solutions empower your seamless entry into the thriving Thai medical and healthcare market. Email us at [email protected] and seize the opportunity and register your Thai company today and start your medical business in Thailand right away!
