Thailand: New Opportunities for Foreign Businesses in Software Development

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DALL·E 2024 05 24 19.29.06 A modern office with a casual vibe in Phuket Thailand. The office features an open space layout with a relaxed atmosphere. There are large windows of

In brief

The Thai government has recently announced significant amendments to the Foreign Business Act, which include removing ten service businesses from the restricted list. Among them is software development.

According to the draft regulation, software development businesses will be exempt from the requirement to obtain a Foreign Business License (FBL) or Foreign Business Certificate (FBC).

This means that a software company can be 100% foreign-owned even without Board of Investment (BOI) promotion.


What Software Development Will Be Exempted?

The exemption applies under the following conditions:

  • Jurisdiction: The business must be a juristic person registered in Thailand.
  • Primary Income Source: The primary income must come from software developed within Thailand.

Exempted Business Activities:

  1. Developing Software for Data Analysis and Integration: Includes creating solutions for Big Data, Data Analytics, and Predictive Analytics.
  2. Developing Software for Information Security and Cybersecurity: Covers the creation of applications aimed at protecting information and securing cyber environments.
  3. Developing Software for Controlling or Integrating Advanced Technology Devices: Pertains to software that manages or integrates with advanced technological devices.
  4. Developing Industrial Software for Manufacturing Support: Includes software that supports manufacturing processes, particularly those requiring advanced technology or equipment in their development.

These changes are poised to significantly enhance the IT business landscape in Thailand, fostering greater innovation and attracting foreign investment in the software development sector.

BOI Incentives

IT businesses can also benefit from incentives offered by the Board of Investment (BOI), which provides a range of advantages to promote investment in Thailand.

Incentives for IT/Tech Business in Thailand

If you have questions about starting an IT business in Thailand or how to receive BOI incentives, please feel free to contact me. I am here to help you navigate the opportunities and benefits available in this thriving market.

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