Why Thailand? Its location in South East Asia is perhaps the very best reason. Its growing economy is another excellent reason. Thailand is a leading business and logistics hub of ASEAN. The country provides world-class infrastructure and is one of the top performing ASEAN nations in the World Bank Logistics Performance Index. Thailand has been actively investing into new infrastructure projects. The Eight-Year Infrastructure Development Plan was initiated with the goal of expanding and bringing Thailand’s infrastructure system to a new level.

Tapping Into Emerging Economies

The Eight-Year Infrastructure Development Plan (2015-2022), worth US$60 billion (THB1.9 trillion), includes upgrading key railway lines, construction of additional deep seaport facilities, expansion of airport facilities, and enhancing road connectivity within Thailand and with neighboring nations. All these improvements are oriented to support even greater volumes of cargo and strengthen Thailand’s position as ASEAN’s logistics hub.

The ASEAN Economic Community (AEC) came into effect in 2015 and Thailand was in a unique position to play a major role in this market of 600 million consumers, which has a combined GDP of more than 2 trillion U.S. dollars.

International Headquarters established in Thailand will have a key advantage over competitors as they can tap into many of the world’s most exciting emerging economies.

Incentives For Setting Up International Headquarters (IHQ) In Thailand

To achieve the goal of creating an investor friendly environment, the Kingdom of Thailand has developed a new group of incentives. Those incentives are specifically oriented on establishing International Headquarters (IHQ) and International Trading Centers (ITC) in Thailand.

The importance of seducing IHQs and ITCs to enter Thailand, is now in the hands of government authorities, namely the Board of Investment (BOI) of Thailand. The BOI is granting various incentives, such as exemptions and or reductions in corporate income tax, withholding tax, personal income tax and specific business tax. Both, IHQ and ITC projects can be granted additional incentives for merit on competitiveness enhancement and decentralization. Other advantages include;

  • being permitted to own land for an office;
  • Being permitted to bring in as many expatriates as required by the business operations, with a relaxation of the Thai-to-foreigner employment ratio.

Summary - Setting Up International Headquarters In Thailand

As you can see setting up International Headquarters in Thailand can be accomplished and be very beneficial to Foreign companies that are looking for new headquarters. And with the involvement of government agencies like the BOI and its case-by-case incentive program companies looking for a central location in South East Asia stand to win big if they choose to come to Thailand.

It is important to note; because the program is run by the Board of Investment in Thailand it is advisable that companies seeking to set up IHQs or ITCs should communicate with our consultants. The BOI, although very eager to bring business into Thailand, has a way of complicating everything. Professional Corporate Services knows its way around the BOI and can clear the path. The whole process from application to operation can take approximately 6 to 12 months. The process is relatively similar to setting up a BOI Company

There are also other corporate structures foreign companies can subscribe to that will enable them to start doing business immediately and may prove to be more advantageous. For more information on setting up International Headquarters in Thailand or for information on other corporate setups or to consult with a corporate professional at PCS for FREE, please don't hesitate to fill in the form below to contact us! We would be pleased to assist you.

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