Recent reports reveal that Thailand has huge investment potential in the automobile sector. The country has achieved greater improvement over operations within the past 50 years, not just for its auto parts assembly lines; but rather as a top-notch automobile manufacturing nation as well. In this scenario, several foreign investors are looking for the best opportunities to lead their business in Thailand.
Thailand is known to have a number of automotive manufacturing units in the different parts of the country and over the years, it has become the largest supplier to other Southeast Asian nations as well. They are currently serving more than 100 countries while becoming the 13th largest automotive parts explorer. At the same time, Thailand is rated as the 6th largest manufacturer in the commercial vehicle sector. Reports reveal that the Thai manufacturing sector developed more than 350000 vehicles in the year 2020 and the country has now become a top performer at the global level.
Observations state that the automobile industry in Thailand has experienced almost 12% economic growth and they have generated employment for more than 500,000 people. The country has now started establishing its solid presence in the global market as a component manufacturer and assembler.
Starting an automobile business in Thailand
Once you have decided to set up an automobile business in Thailand, it is good to understand the essential rules and regulations that you need to follow in the country to lead your idea. Below we have listed a few details about essential steps that you need to follow to establish your new business in Thailand as a foreign investor:
• Understand Foreigner Business Act
First of all, you need to check the foreign business act in Thailand which was established in the year 1999. It states all the rules and regulations that foreign investors and companies need to follow to lead operations in Thailand. With this information, you will be able to understand what is prohibited and what is allowed as per government norms. Moreover, you will also understand the special permissions required to start a business in Thailand.
• Go through the benefits and incentives of BOI
You will be happy to hear that the Thailand Board of Investment offers several useful schemes and offers for foreign investors to start a new business in the country. If your business meets the criteria, you can easily submit the application and start with the operations. The country also offers special rebates on income tax depending upon the income level. The new businesses may even receive special discounts and import duty exemptions on essential materials to lead their research and development operations.
• Register your company
Once you have understood all the rules and regulations, it is the right time to do company registration Thailand. You may have to reserve the name of the company and then start with the address and ownership-related formalities. The local agencies can guide you well on how to work on a memorandum of association, declarations, and other aspects of registration.
Once the documentation-related formalities are over, you can start business operations in Thailand within very less time.