Thailand5 Things To Know About Industrial Zone in Thailand in 2023

https://x5v6w2n8.rocketcdn.me/wp-content/uploads/2023/06/pexels-sane-noor-6938750.jpg
  • Thailand Industrial Zone (TIZ) is a special type of industrial park in Thailand that is established to attract foreign investment, promote economic growth, and develop the country’s industrial sector. The Thai government offers various incentives and benefits to investors who establish their business operations in TIZ, such as tax exemptions, investment promotion privileges, and streamlined administrative processes.
  • TIZs are typically located near major transportation hubs, such as ports, airports, and highways, to facilitate the movement of goods and materials. They are also equipped with modern infrastructure, including utilities such as water, electricity, and telecommunications, and amenities such as worker housing, restaurants, and medical facilities.
  • The Thai Board of Investment (BOI) oversees the establishment and management of TIZs and provides support to investors who wish to set up their operations in these zones. The BOI offers various investment promotion schemes, including tax incentives, exemptions, and reductions, to companies operating in TIZs. As of 2021, there are over 30 TIZs in Thailand, covering a range of industries, including automotive, electronics, chemicals, and food processing. These zones have played a critical role in attracting foreign direct investment to Thailand and promoting the country’s economic development.
  • Tetra Consultants is an international business consultancy firm that assists clients with the process of setting up a company in Thailand Industrial Zones. Our comprehensive service package includes the steps to register a company in the proposed industrial zone, corporate bank account opening, secure relevant licenses and permits, and other services which can ensure the smooth operation of your business in Thailand free trade zones. In this article, our team of business setup experts has outlined the 5 key things to know about the industrial zone in Thailand. 

 

5 Things To Know About Industrial Zone in Thailand

 

Benefits of setting up a company in an Industrial Zone in Thailand: Setting up a company in Thailand’s industrial zones can offer several benefits, including

  • Access to infrastructure: Thailand’s industrial zones are strategically located near ports, airports, and major highways, making it easy for businesses to access infrastructure and transportation.
  • Cost savings: Thailand’s industrial zones offer a range of tax incentives, such as exemptions on import duties and corporate income tax, which can lead to significant cost savings for businesses.
  • Skilled workforce: Thailand has a well-educated and skilled workforce, which is readily available in its industrial zones. The country also has a high level of English proficiency, making it easier for businesses to communicate with their employees.
  • Government support: The Thai government actively promotes investment in its industrial zones and provides a range of support services, including assistance with licensing and permits.
  • Access to regional markets: Thailand’s location in the heart of Southeast Asia provides businesses with easy access to regional markets, including China, India, and the ASEAN countries.
  • Quality of life: Thailand has a high quality of life, with affordable housing, excellent healthcare, and a rich cultural heritage. This makes it an attractive destination for both employees and investors.

Tax incentives offered in Industrial Zone in Thailand: The Thailand Industrial Zone, also known as the Eastern Economic Corridor (EEC), offers several tax incentives to attract foreign investment and promote economic growth. Some of the key tax incentives are:

  • Corporate Income Tax (CIT) exemption: New projects in the EEC are eligible for a CIT exemption for up to 13 years, depending on the level of investment and location.
  • Import duty exemption: Import duties on raw materials, machinery, and equipment used in the production process are exempted.
  • Land and property tax exemption: Land and property taxes are waived for up to 30 years for investors in the EEC.
  • Reduction in personal income tax: Qualified executives and skilled workers in targeted industries may receive a personal income tax reduction for up to 15 years.
  • Tax holidays: Certain EEC activities such as software development, research and development, and technical services can enjoy a tax holiday for up to 8 years.
  • Reduced withholding tax rates: Qualified investors in the EEC may be eligible for reduced withholding tax rates on dividends, interest, and royalties.

Regulatory body of Thailand free trade zones: The regulatory body for free trade zones (FTZs) in Thailand is the Board of Investment (BOI). The BOI is a government agency that promotes and regulates foreign investment in Thailand by offering various incentives and benefits to businesses that invest in specific industries and zones, including FTZs. The BOI oversees the management and development of FTZs and provides support to companies that operate within these zones. It also works closely with other government agencies, such as the Customs Department, to ensure compliance with regulations and standards related to international trade.

Requirements for forming a company in an Industrial Zone in Thailand: The requirements for setting up a company in a Thailand industrial zone may vary depending on the specific industrial zone and the type of company you wish to establish. However, in general, the following documents may be required:

  • Memorandum of Association: This is a legal document that outlines the company’s objectives, structure, and nature of its business.
  • Articles of Association: This document contains the rules and regulations governing the company’s internal affairs and management.
  • Company Registration Form: This form contains details of the company’s directors, shareholders, and registered address.
  • Tax ID registration: The company must register for a Tax Identification Number (TIN) with the Revenue Department.
  • Work Permit and Visa: If you are a foreigner wishing to establish a company in Thailand, you will need to obtain a work permit and visa.
  • Land Lease Agreement: If you plan to lease land in the industrial zone, you will need to provide a lease agreement.
  • Environmental Impact Assessment (EIA): Depending on the type of industry you plan to operate, an EIA report may be required to ensure that your operations comply with environmental regulations.
  • Business License: You will need to obtain a business license from the local authorities to operate in the industrial zone.

Steps to register a company in an Industrial Zone in Thailand: Setting up a company in the Thailand Industrial Zone involves several steps and requirements. Here is a general overview of the process:

  • Step 1 – Choose a business structure: The first step is to decide on the type of company structure you want to establish, such as a limited liability company, a joint venture, or a branch office.
  • Step 2 – Reserve a company name: You will need to reserve a unique company name with the Department of Business Development (DBD) to ensure that it is not already taken.
  • Step 3 – Register the company: You will need to register the company with the DBD and obtain a certificate of incorporation. You will also need to obtain a tax ID number and register for VAT if required.
  • Step 4 – Obtain necessary licenses and permits: Depending on your industry, you may need to obtain licenses and permits from various government agencies.
  • Step 5 – Open a corporate bank account: At this stage, you need to ensure a corporate bank account opening either with a local bank in Thailand or an internationally reputable bank to conduct business and receive payments. You may engage Tetra Consultants’ team of banking experts to ensure a smooth process of securing a corporate bank account within a period of 4 weeks. 
  • Step 6 – Register for social security and work permits: You will need to register your employees for social security and obtain work permits and visas for foreign employees.
  • Step 7 – Apply for BOI promotion (optional): If you meet the eligibility criteria, you can apply for investment promotion incentives from the Board of Investment (BOI).
  • Step 8 – Find a location and set up your operations: You will be required to find a suitable location in the Thailand Industrial Zone and set up your operations, including hiring employees, leasing or purchasing equipment, and obtaining necessary utilities and services.

Conclusion 

  • Navigating the country of Thailand’s Industrial Zone complex business climate might be a challenging process – a hassle to say the least. However, with the key benefits regarding tax rates and a business-friendly environment outlined above, it is easy to see why many businesses would choose to set up in the Industrial Zone of Thailand. As such, Tetra Consultants hopes that this article has provided you with a much better understanding of the key steps to register company in the Industrial Zone in Thailand so that you can truly decide on whether you should undertake the company registration process in the Industrial Zone in Thailand yourself. 
  • So, what are you waiting for? Contact us to find out more about the process of starting a business in Thailand free trade zones, and our dedicated and experienced team will respond within the next 24 hours. Tetra Consultants will not only empower you by helping to navigate the different regulations of Thailand but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow us on

Address

22 Sin Ming Lane #06-76 Midview City, Singapore 573969

©2010-2024 Tetra Global Consultants. All rights reserved.