The cost of starting a business in Thailand is very affordable when compared to many other countries.
When it comes to setting up a company in Thailand, the company registration will cost between 5,000 and 250,000 bath ($160 and $8150), a factory license will cost 100,000 baht (about $3,260), while a 1-year work permit will cost 6,000 baht ($190), and a one year visa will cost 5,000 ($160).
Office rent will range from around 730 to 1100 baht per square meter in Bangkok while electricity costs 5-6 kW/hour, and air-conditioning will cost around 50 baht ($1.6) per square meter/month.
Corporate tax rates in Thailand are 20% on income and 50% of the estimated value will need to be paid before the eighth month ends. This figure is 15% for businesses with a net profit below 3 million baht ($96,000). Withholding tax for companies is 1% and for individuals, it is 15%. VAT for income over 1,800,000 is 7%.
The personal income tax is Thailand is as follows:
- 1 – 150,000 ($1 – $4,800) = Exempted
- 150,001 – 300,000 ($4,800 – $9,600) = 5%
- 300,001 – 500,000 ($9,600 – $16,000) = 10%
- 500,001 – 750,000 ($16,000 – $24,000) = 15%
- 750,001 – 1,000,000 (24,000 – $32,000) = 20%
- 1,000,001 – 2,000,000 ($32,000 – $64,000) = 25%
- 2,000,001 – 5,000,000 ($64,000 – $160,000) = 30%
- More than 5,000,001 ($160,000) = 35%