ABOUT THAILAND

Amongst all the countries in Southeast Asia, Thailand, officially the Kingdom of Thailand, stands as a major economic powerhouse and a renowned global tourism destination. Strategically located at the heart of the Indochinese peninsula, Thailand is celebrated for its rich cultural heritage, stunning landscapes, and dynamic economy. Bangkok, the capital and largest city, is a vibrant metropolis and the country’s primary economic, political, and cultural hub. According to the World Bank, Thailand is classified as an Upper-Middle Income Economy, signifying its significant industrial and services sector development.

The currency of Thailand is the Thai Baht (THB). As of today’s exchange rates (June 2025), 1 Thai Baht is approximately 2.63 Indian Rupees. The population of Thailand is estimated at approximately 71.6 million in 2024. Thailand shares land borders with Myanmar to the west and north, Laos to the northeast, Cambodia to the east, and Malaysia to the south. It has maritime borders with India (Andaman Sea), Indonesia, Malaysia, Cambodia, and Vietnam, linking it to major regional shipping routes. The official language is Thai. English is widely spoken, especially in urban areas, tourist destinations, and business sectors, reflecting its international engagement. The vast majority of the population practices Buddhism, with significant Muslim and Christian minorities, particularly in the southern regions. Major international airports include Suvarnabhumi Airport (BKK) and Don Mueang International Airport (DMK) in Bangkok, and Phuket International Airport (HKT), providing extensive global connectivity. Thailand also boasts crucial commercial seaports, with Laem Chabang Port being the largest and a major deep-sea port in Southeast Asia, alongside Bangkok Port (Khlong Toei) and Map Ta Phut Port (primarily for industrial cargo).

The standard corporate income tax rate in Thailand is 20%. To attract foreign direct investment and promote strategic industries, the Thai government offers substantial incentives through the Board of Investment (BOI). These incentives aim to enhance competitiveness and encourage technology transfer. Key incentives include:

• Tax Holidays: Corporate income tax exemptions for a period of up to 8 years, depending on the activity and investment value.
• Import Duty Exemptions: On machinery, raw materials, and components used in promoted projects.
• Non-Tax Incentives: Permission to own land, permit to bring in foreign experts and technicians, and streamlined visa and work permit services.
• Targeted Industries: Special benefits for investments in high-tech, innovative, and green industries, as well as those located in designated zones like the Eastern Economic Corridor (EEC).
• R&D Incentives: Enhanced tax deductions for R&D expenses.

Opesh Group of companies can assist in the due diligence process, including financial planning, registration, exploring business options, and if required, even helping you find a suitable rental property for your office or residence.

Establishing a business in Thailand involves navigating its legal framework, primarily the Foreign Business Act (FBA). The most common legal entities for foreign investors are a Limited Company, a Representative Office, or a Branch Office. While the FBA lists certain restricted businesses where foreign ownership is limited (often requiring a Thai majority), the Board of Investment (BOI) can grant special privileges and exemptions, allowing 100% foreign ownership in many promoted sectors. Thailand’s consistent efforts to improve its business environment, coupled with a well-established legal system, make it an attractive destination for foreign investors.

In case an investor is planning to establish a Limited Company or any corporate business setup in Thailand, Opesh Group will be helping you in taking the right decision for setting up your business in Thailand and we will also guide you about how to follow the procedure while formulating your company in Thailand.

Types of Business which can be started in Thailand:

• Tourism & Hospitality: A cornerstone of the Thai economy, offering diverse opportunities in resorts, hotels, medical tourism, eco-tourism, and related services, particularly with post-pandemic recovery.
• Automotive Industry: Thailand is a major automotive production hub in Southeast Asia, with significant investment opportunities in vehicle assembly, auto parts manufacturing, and a strong focus on electric vehicle (EV) production.
• Electronics & Electrical Appliances: A well-established sector for manufacturing and exporting a wide range of electronic components, home appliances, and smart electronics.
• Digital Economy: Rapidly growing sector including e-commerce, fintech, software development, data centers, and various digital startups, driven by a large and tech-savvy population.
• Agriculture & Agro-processing: Leveraging its strong agricultural base (rice, rubber, fruits), opportunities exist in advanced agro-processing, food innovation, and high-value agricultural products.
• Renewable Energy: Significant potential in solar, biomass, and waste-to-energy projects, supported by government initiatives for clean energy transition.
• Logistics & Infrastructure: Investment in improving regional connectivity, smart logistics, and developing infrastructure within key economic zones like the Eastern Economic Corridor (EEC).
• Medical & Wellness Hub: Leveraging its reputation for medical tourism, opportunities in advanced healthcare facilities, wellness centers, and pharmaceutical manufacturing.

Advantages of Starting Business in Thailand:

• Strategic Location: A gateway to ASEAN and the wider Indo-Pacific region.
• Strong Manufacturing Base: Particularly in automotive and electronics, with established supply chains.
• Vibrant Tourism Sector: A world-leading destination, ensuring a steady stream of visitors and related business opportunities.
• Supportive Investment Policies: Proactive government incentives and BOI promotions.
• Developing Infrastructure: Ongoing investment in transportation and digital infrastructure.
• Skilled Workforce: A relatively skilled and adaptable labor force.
• Growing Domestic Market: A sizeable and increasingly affluent consumer base.

Imports & Exports: Thailand is a highly export-oriented economy, with manufactured goods forming the bulk of its exports.

Major items which are exported from Thailand:

• Vehicles, Parts & Accessories (especially automotive)
• Electronic Integrated Circuits and Electrical Appliances
• Machinery and Equipment
• Rubber and Rubber Articles
• Plastics and Plastic Articles
• Chemical Products
• Food Products (e.g., rice, processed food, seafood)

Major items which are imported in Thailand:

• Electrical and Electronic Equipment (including components for manufacturing)
• Mineral Fuels and Oils (e.g., crude oil, refined petroleum)
• Machinery, Nuclear Reactors, Boilers
• Iron and Steel
• Plastics
• Chemicals (Organic and Inorganic)
• Pearls, Precious Stones, Metals, Coins

Major items traded between Thailand and India (as of June 2025): Trade between Thailand and India has been growing steadily, with significant opportunities for further expansion.

• Exports from Thailand to India: Include motor cars, parts & accessories, machinery and parts, chemicals, plastics, electrical and electronic products, and rubber products.
• Imports in Thailand from India: Include precious stones and jewelry, machinery and parts, iron and steel and their products, chemicals, pharmaceuticals, and some agricultural products.

Manufacturing: Manufacturing is a cornerstone of Thailand’s economy, being a regional hub for several key industries.

• Automotive Manufacturing: A major production base for global car manufacturers, including passenger cars, pickup trucks, and motorcycles, with an increasing focus on Electric Vehicles (EVs).
• Electronics & Electrical Appliances: Extensive production of integrated circuits, hard disk drives, consumer electronics, and electrical appliances.
• Food Processing: A significant sector, processing agricultural raw materials into various food products, beverages, and seafood for domestic consumption and export.
• Petrochemicals: Production of plastics, chemicals, and synthetic fibers.
• Machinery: Production of various types of machinery and industrial equipment.
• Textiles and Garments: Traditional sector, focusing on specific segments and value-added products.

Mining: Thailand’s mining sector is relatively small compared to its manufacturing and services sectors, and it relies heavily on imports for many raw materials.

• Gypsum: Significant producer, used in construction and other industries.

• Lignite: Primarily for domestic power generation.

• Potash: Emerging potential, particularly in the northeastern region.

• Rock Salt: Produced for industrial use.

• Some production of construction minerals (limestone, marble, aggregates).

• GDP = $573 billion (nominal, 2024 est. IMF)

• GDP Growth = 2.8% (2024 est. IMF); 1.8% (2025 forecast, World Bank)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. In its last edition (2020), Thailand ranked 21st out of 190 economies, indicating a continuously improving and highly favorable environment for establishing and operating businesses.

• GDP per Capita = $7,770 (nominal, 2025 est. IMF)

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