Bangkok may be best known as one of the most visited tourist destinations. However, it is also a dynamic hub for entrepreneurs and businesses of all sizes. With its strategic location in the heart of Southeast Asia, a robust economy, supportive government policies, and a vibrant business ecosystem, Bangkok offers a fertile ground for those looking to launch or expand their ventures.
Why Bangkok is Best for Business?
For entrepreneurs looking to start a business in Asia, Thailand is a top contender, offering a unique blend of opportunities and a thriving business environment. As one of the original Tiger Economies, Thailand has a proven track record of impressive growth. The nation’s rich natural resources provide a solid foundation for various industries. Moreover, Thailand is a major exporter of rice, textiles, jewelry, and electrical appliances, contributing significantly to its GDP.
If you’re considering Thailand company formation, we have gathered 10 compelling advantages of starting a business in Bangkok to make an informed decision:
1.Strategic Location & Gateway to Southeast Asia
Bangkok’s geographical location positions it as a gateway to Southeast Asia’s burgeoning markets, a region with a combined GDP of over $3 trillion, including its own booming domestic consumer market of more than 69 million people. Its well-developed infrastructure, including Suvarnabhumi International Airport (handling over 65 million passengers annually) and Laem Chabang Port (one of the busiest in Southeast Asia), facilitates trade and connectivity with the entire region.
In addition, Thailand offers convenient trade with China, India, and the countries of ASEAN (Association of Southeast Asian Nations). Without a doubt, “location” is among the first benefits of starting a business in Bangkok that comes to mind.
2.Thriving Economy & Growing Middle Class
Thailand’s economy is one of the most robust in Southeast Asia, with an average GDP growth rate of 4.1% in 2018, according to World Bank. Bangkok, as the economic epicenter, boasts a growing middle class with increasing purchasing power. It’s estimated that by 2030, Thailand’s middle class will comprise 65% of the population. This presents a vast customer base for various products and services.
Not to mention the expanding transportation systems, such as 7 international airports, 6 deep seaports, and 2 international river ports. Additionally, the country plans to further develop a high-speed rail network that will connect Bangkok with the north, south, east, and west of Thailand, as well as to southern China.
3.Supportive Government Policies & Incentives
A great reason to set up a company is the government policies. The Thai government actively encourages foreign investment through initiatives like the Board of Investment (BOI), which offers tax incentives, exemptions, and non-tax benefits to eligible businesses. The SMART Visa program also makes it easier for foreign entrepreneurs and skilled professionals to work in Thailand. On this note, a representative office in Thailand can be a great way to establish a presence and explore opportunities.
4.Skilled & Cost-Effective Workforce
Bangkok offers a large pool of skilled and educated workers across diverse industries, with a literacy rate of over 93%. Labor costs are relatively competitive compared to Western countries, with an average monthly wage of around ฿15,000 (USD 450). Furthermore, Bangkok is quickly becoming a hub of skilled foreign workforce from around the globe, so you and your business will find no difficulty in searching for the right employee.
5.Established Infrastructure & Business Ecosystem
Bangkok’s infrastructure is world-class, with modern office spaces populating the city’s central business districts like Silom, Sathorn, and Asoke. It has reliable and efficient transportation networks like the BTS Skytrain and MRT subway systems. The city also boasts a vibrant entrepreneurial ecosystem, with co-working spaces scattered throughout the city’s central district and the outskirts.
6.Ease of Doing Business
Thailand consistently ranks high in the World Bank’s Ease of Doing Business Index, placing 21st globally in 2020. This means that setting up and operating a business in Bangkok is relatively straightforward, with minimal bureaucratic hurdles. If you’re looking for assistance, there are reputable law firms in Bangkok specializing in business law to help you set up your company.
7.Vibrant Consumer Culture & Lifestyle
Bangkok is a melting pot of cultures, with a thriving consumer market that embraces both local and international trends. The city offers a high quality of life with affordable housing options, excellent food, and a rich cultural scene with attractions like the Grand Palace and Wat Pho. This makes it an attractive place to live and work.
8.Booming Tourism Industry
Bangkok is a major tourist destination, attracting over 22 million international visitors in 2019, contributing to 12% of the country’s GDP. This presents significant opportunities for businesses in the tourism, hospitality, and retail sectors. In fact, one of the fastest-rising tourism sectors in the country is “medical tourism.” International patients are visiting Thailand to admit themselves to world-class healthcare at an affordable price.
9.Strong Financial Sector
Bangkok’s financial sector is well-developed, with numerous international banks like HSBC, Citibank, and Standard Chartered operating in the city. The Stock Exchange of Thailand (SET) is also a major player in the region. This makes it easier for businesses to access financing and manage their financial operations.
10.Innovative & Tech-Savvy Environment
Bangkok is increasingly becoming a hub for technological innovation. The city is home to several tech parks and initiatives like the National Innovation Agency (NIA) that promote the development of new technologies and startups.
In conclusion, Bangkok presents a compelling proposition for entrepreneurs seeking to establish and grow their businesses in Asia. Its strategic location, robust infrastructure, skilled workforce, government support, and vibrant business ecosystem make it an ideal destination for companies of all sizes and industries.
If you’re intrigued by the benefits of starting a business in Bangkok, there are several resources available to help you get started. At Herrera & Partners, a reputable law firm in Bangkok, we can help give you a head start.
Set Up a Company in Thailand with H&P
At Herrera & Partners, we understand the intricacies of establishing a company in Thailand. Our team of experienced lawyers and business specialists offers tailored solutions and guidance through every step, including:
- Reservation and registration of company name
- Draft of Memorandum of Association (MOA) and statutory meeting
- Obtain the company certificate
- Registration of VAT and Social Security
- Open company bank account
- Assistance on non-B visas and work permits for foreigners
- Accountancy, tax, and payroll
We ensure your business starts on the right foot, maximizing your chances of success in the Thai market.
For professional consultation with a Thai Tax Lawyer, contact us at:
Email: [email protected]
Telephone: +66 22545600
Office in Bangkok: Herrera and Partners Co., Ltd. 142 Two Pacific Place, 17th Floor, Sukhumvit Road, Klongtoey, Klongtoey, Bangkok 10110
