Thailand - Market Entry and Legal Services

Lawyer & Law Firm in Thailand

Thailand is the second largest economy in ASEAN and 23rd largest economy globally offering exciting business opportunities to foreign investors who are interested in this dynamic market. Not only ASEAN, but Thailand also offers a gateway to Asia-Pacific markets. Over the past few decades, Thailand has transformed its economy from being primarily agriculture-based to one of the most diverse in the region. In addition to agriculture, other major industries including cement, auto components, textiles, furniture, petroleum products and others are flourishing & attracting foreign investment.

Commercial Relations between India-Thailand

Bilateral trade between India and Thailand has seen significant growth, reaching an all-time high of around USD 15 billion in 2021-22. Thailand is India's 5th largest trading partner in the ASEAN region. Thai goods have benefited from tax reductions under the ASEAN-India Free Trade Agreement in Goods, which came into effect in January 2010.

Business Advantage for Indian Companies in Thailand

Thailand's strategic location, government support, skilled workforce, ease of doing business, and advantageous tax policies make it an attractive destination for Indian companies. With its proximity to India and China, Thailand offers access to the booming Asian market and free trade opportunities. The government actively promotes business growth and embraces digital technologies. Thailand's high literacy rate and cost-efficient labour force contribute to a productive workforce. The country ranks well in terms of ease of doing business, making it easy for companies to start operations. Advantages for Indian companies include favourable tax rates for regional head offices, tax exemptions on dividends, and no currency controls or remittance restrictions. Overall, Thailand provides a favourable business environment and incentives for Indian companies looking to expand into the country.

Incentives and Support Programs by Thailand for Indian Companies

• BOI Promotion: Incentives for tax exemptions and import duty exemptions
• SEZs: Special Economic Zones with tax incentives and streamlined customs procedures.
• One-Stop Service Centre: Simplified process for visas and work permits.
• DTAA: Double Taxation Avoidance Agreement between Thailand and India.
• Thailand Investment Immigration Program: Long-term visas for foreign investors.
• Business Support Services: Assistance with matchmaking, market research, and networking.
• Thailand Plus: Investment incentives and streamlined business regulations.
• EEC: Special economic zone promoting advanced industries.
• IEAT Support: Infrastructure development and permits for industrial estates.
• TSP: Technology and innovation hub for research and development.
• Start-up Ecosystem Support: Programs for start-up companies and funding opportunities.
• Export Promotion: Assistance for expanding export markets.

Starting a Business In Thailand

Thailand allows foreigners to set up a limited company, but certain legal requirements and business licenses are necessary. The popular legal entities for foreign investors include limited companies, partnerships, and joint ventures. However, foreign investors are restricted from fully owning a company, with a maximum ownership limit of 49%. The registration process involves proposing a company name, establishing a corporate bank account, obtaining necessary approvals, and registering with relevant tax authorities. The Thai-India double taxation agreement has also been adjusted, reducing withholding tax rates on interest and royalties.

Visa and Immigration

Thailand offers various visa options for individuals conducting business activities:

• Non-Immigrant B Visa
• SMART Visa
• Business Visa Exemption
• Multiple Entry Visa
• Thailand BOI Visa

Thailand's diverse economy, strong infrastructure, and ample resources offer opportunities in sectors like manufacturing, tourism, healthcare, and agriculture. Understanding Thai culture and complying with local laws are essential for success. Market research helps tailor products to consumer preferences, while partnerships with local businesses provide valuable insights. Leveraging government support and staying updated on regulations can lead to advantages. Overall, careful navigation and strategic decisions can lead to a successful presence in Thailand's market.

To read more about the Thailand market and various business opportunities – CLICK HERE

How Do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to Thai companies seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in Thailand, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our Thai counterparts, we are well-equipped to provide guidance on cross-border transactions between India and Thailand, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo-Thai business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

Our Partner in Thailand

India Law Offices and Dharmniti Law Office have formed a collaborative partnership to facilitate legal work between India and Thailand. This collaboration is strengthened by their mutual membership in PraeLegal, a network comprising independent commercial and business law firms. By leveraging this association, both firms can effectively address legal matters that arise between the two countries. This cooperative alliance enables them to provide comprehensive legal services and expertise to clients involved in cross-border transactions, ensuring a seamless and efficient approach to matters spanning India and Thailand. Dharmniti Law Office is located in Bangkok, Thailand and offers expertise in areas of administrative law, debt rehabilitation, intellectual property, litigation, taxation, real estate, capital markets and securitisation.

If you are a Thai company or individual seeking assistance in India or an Indian entrepreneur planning to enter the Thai market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated to providing the guidance and support you require.