Perks Of Setting Up A Startup In Thailand

26 March, 2018
By G-Team in Technology
Gpayroll payroll software blog - thailand
Beyond Silicon Valley, home to some of the top-funded startups today, Southeast Asia is seeing its fair share of startups that are on key investors' watch list.

According to an infographic by Tech In Asia, 2017 saw startups in Southeast Asian strike a record of USD7.8 billion in disclosed funding deals. This is a 212 per cent jump of 2016's figure of USD2.5 billion.

Of course, with Southeast Asia being made up of several countries, any business owner might wonder where is the best place to set up their business entity. Perhaps one place to consider would be Thailand.
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The cost of hiring a software engineer is THREE TIMES LOWER than that in Europe

Regardless of the line of business for any startup, a software engineer is undoubtedly the most important position in the startup. These people are the ones who literally create programmes from scratch, in which these programmes are the ones that will eventually make or break the startup. Given that these people are high in-demand, there is no doubt that companies are willing to pay exorbitant salaries to hire them. However, with the low cost of living in Thailand as well as the significantly lower taxes, any business owner is likely to be able to hire a guy with the same level of competency in terms of tech skills at a lower cost as opposed to Europe or even United States.

Thailand's booming population is digitally ready and savvy

With a total of 32 self-governing cities and 67 million people spread across about 513,000 square kilometers, it is no wonder that Thailand's is the world's 21st most populous country. And with over 25 million active Facebook users in Bangkok itself, Bangkok can be coined as the capital city of Facebook. Additionally, over half of the Thais are active Line users. With the high digital consumer rates in Thailand, it is no doubt much easier to penetrate into the Thai mobile and digital market.

Besides the sky-high mobile users in Thailand, the Thais are also starting to embrace other forms on technology. In March 2018, the Human Resources Professionals Association will be organising its first ever HR Technology Conference and Exhibition in Thailand. This will allow both companies as well as startups to get the full picture of HR technology and the perks that it offers especially for startups. With the increased support from the local community, startups in Thailand need not worry about having the lack of technology resources within the country.  

Thailand has one of the lowest corporate tax in Southeast Asia

The corporate income tax in Thailand is set at 20%, which is second lowest in the region, after Singapore's income tax of 17%. Moreover, if the startup is supported by the Thailand Board of Investment, the startup entity will receive tax exemption for five years. Additionally, with the numerous incentives and investment funds received from major corporations in Thailand, the startup ecosystem in Thailand is likely to accelerate in the coming years.

Thailand is tourist-ready and accessible

Given that tourism contributes to the bulk of the country's GDP every year, it is not secret that Thailand is home to some of the best food in the world. Moreover, with pristine beaches located a few hours' drive away from central Bangkok, it makes the perfect weekend break for employees or even a company retreat. Additionally, the Thais are known to be extremely friendly - hence its name, the Land of Smiles.

While the startup scene in Thailand is certainly as established as that of Silicon Valley, the market is definitely not showing any signs of slowing down. In fact, with plenty of support from the local Government as well as large companies, the startup scene in Thailand is expected to accelerate even more within the next few years.

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