Thailand SME policy updates for 2026 introduce revised SME definitions, tax incentives, BOI support, financing schemes, and government programs affecting both Thai and foreign-owned SMEs operating in Thailand.
Introduction:
Thailand’s SME sector is becoming an increasingly important part of the economy. As government support continues to evolve, new policies are being introduced to strengthen small and medium-sized enterprises and improve Thailand’s competitiveness as a regional business hub.
In 2025, several important regulatory and policy developments were announced that directly affect how SMEs operate, qualify for incentives, and access funding from 2026 onward. For foreign investors and business owners, understanding these changes is essential when planning market entry, structuring operations, or expanding an existing presence in Thailand.
This guide provides a clear overview of the latest Thailand SME policy updates, with a particular focus on how they apply in practice to both local and foreign SME Thailand structures. It examines the updated Thailand SME definition, key SME criteria Thailand businesses must meet, and the practical implications for tax and compliance. The article also explains available SME tax benefits Thailand, current Thailand SME financing options, and the government-backed Thailand SME support programs designed to improve access to capital, promote fair competition, and support long-term growth.
Key Points
- The Thailand SME definition (2026) is based on both employee numbers and annual turnover, with separate thresholds for manufacturing and service, wholesale, and retail businesses
- SME status matters as it provides access to SME tax benefits, government incentives, and official SME support programs
- BOI and TISO promotions may allow eligible SMEs to operate with 100% foreign ownership, reduced regulatory requirements, and tax or import duty incentives
- Thailand SME financing options are expanding through low-interest loans, credit guarantees, faster tax refunds, and increased government procurement under the Quick Big Win policy
- New and proposed policies including digital transformation tax deductions and the Draft Start-up Promotion Act signal long-term government commitment to strengthening the SME Thailand ecosystem through Thailand SME support programs
What Qualifies as an SME in Thailand? 2026 Definitions
Under Thailand’s regulatory framework, the Thailand SME definition is based on clearly defined thresholds for employee numbers and annual turnover. To qualify under the applicable SME criteria Thailand, a business must meet both requirements, rather than relying on just one. This approach provides a more consistent basis for classifying SMEs and determining eligibility for government measures and incentives within the broader SME Thailand landscape.
These criteria are particularly relevant for businesses assessing access to SME tax benefits Thailand, participation in Thailand SME support programs, and eligibility for Thailand SME financing schemes.
SMEs in Thailand fall into two main categories:
- Manufacturing businesses with up to 200 employees and annual turnover not exceeding THB 500 million (approximately USD 13.5 million).
- Service providers, wholesale, and retail businesses with up to 100 employees and annual turnover capped at THB 300 million (approximately USD 8.1 million).
In addition to the standard Thailand SME definition, further classifications are used by the Office of SMEs Promotion (OSMEP) to distinguish businesses by size and operating scale.
Under OSMEP guidelines, businesses may be classified as follows:
Micro Enterprises
- Revenue: not exceeding THB 1.8 million per year (all sectors)
- Employees: no more than 5 employees (all sectors)
Small Enterprises (Manufacturing Sector)
- Revenue: more than THB 1.8 million and up to THB 100 million per year
- Employees: more than 5 and up to 50 employees
Small Enterprises (Trade and Service Sectors)
- Revenue: more than THB 1.8 million and up to THB 50 million per year
- Employees: more than 5 and up to 30 employees
This criteria is the basis of how SME Thailand status is assessed and is the main factor in determining which businesses can access government support and incentive programs.
Why SME Status Matters: Benefits and Incentives for SMEs
Qualifying as a small or medium-sized enterprise in Thailand can have a significant effect on the long-term financial performance of a business. SME classification could lead to eligibility in a range of government-backed incentives, including reduced corporate income tax rates, access to state-supported financing, and targeted support programs designed to strengthen business growth and liquidity.
SME Tax Rates
For foreign-owned companies in particular, SME status also comes with their own set of corporate income tax rates significantly below the standard 20%.
Companies whose paid up capital does not exceed THB 5 million at the end of an accounting period, and its income from the sale of goods or the provision of services remains below THB 30 million for that period, the following corporate income tax rates may apply:
| Net profit (THB) | Tax rate (%) |
| 0 to 300,000 | 0 |
| 300,001 to 3 million | 15 |
| Over 3 million | 20 |
How can the Board of Investment (BOI) Support SMEs in Thailand?
The Thailand Board of Investment (BOI) plays an important role in supporting foreign and local businesses, including SMEs in Thailand, by offering targeted incentives and support for companies establishing or expanding operations in the country.
By obtaining a BOI promotion, eligible businesses, including SMEs may benefit from advantages such as 100% foreign ownership, corporate income tax exemptions or reductions, import duty incentives, and more flexible rules for hiring foreign specialists. BOI promoted companies are not subject to standard requirements such as the four Thai employees per foreigner ratio or minimum registered capital thresholds.
BOI support is focused on priority industries aligned with Thailand’s long-term economic strategy, including technology, digital services, advanced manufacturing, clean energy, healthcare, and innovation-driven sectors.
By directing investment into these areas, the BOI aims to strengthen Thailand’s competitiveness while creating a more sustainable and knowledge-based economy.
Read more:
A Guide to 100% Foreign Business Ownership in Thailand
Which Projects Actually Qualify for a BOI Promotion?
BOI promotions are available across a wide range of business activities, including manufacturing, agriculture, machinery, software, and digital services. For SMEs in Thailand that do not qualify for standard BOI categories, the Trade and Investment Support Office (TISO) promotion offers a more flexible alternative. TISO is commonly used by service-based and support businesses due to its wide scope and lower entry barriers.
In practice, BOI eligibility extends far beyond the high-technology sectors it is often associated with. Many promotion categories allow for adaptable business models, and proposed activities can frequently be structured to meet BOI requirements. For foreign-owned SMEs in Thailand, early assessment of BOI or TISO eligibility can open access to incentives and regulatory advantages that are otherwise unavailable under standard company structures. Talk to our experts for more information.
Read more:
BOI Company (TISO): An Alternative BOI Opportunity for Investors
BOI Incentives That Makes Doing Business in Thailand Easier
The Thailand Board of Investment (BOI) offers a range of incentives to make investing in Thailand more attractive. These benefits are designed to increase your business’s competitiveness and are split into two main types: tax benefits and general business support.
These incentives are not available to every business in Thailand and have been designed to make it easier for foreign investors to get started and ultimately succeed in Thailand.
The Biggest Advantage: 100% Foreign Ownership
Although Thailand actively encourages foreign investment, certain business activities remain restricted under the Foreign Business Act. Foreign-owned companies operating in these sectors are generally required to obtain a Foreign Business License or partner with Thai shareholders, both of which can create structural and compliance challenges, particularly for SMEs in Thailand.
One of the key advantages of BOI promotion is that BOI promoted companies may operate restricted activities by obtaining a Foreign Business Certificate, avoiding the more time-consuming and uncertain Foreign Business License process.
For foreign-owned SMEs in Thailand, this exemption can be important. BOI promotion reduces regulatory barriers, supports full foreign ownership in qualifying activities, and grants access to incentives that are not available under standard company structures, making market entry and long-term operations significantly more practical.
BOI Business Support That Makes a Real Difference
As well as the possibility of 100% foreign ownership, the BOI offers incentives designed to enhance the competitiveness of businesses in Thailand that are not available to regular business structures.
Land Ownership
BOI companies can own 1 Rai, certain BOI promotions for specific business activities are allowed to own larger plots of land.
Reduced Requirements for Work Permits
BOI companies are able to hire foreign staff with reduced requirements as there are no quotas when hiring foreign skilled employees. For example, Thai Limited Companies typically need a 4:1 ratio of Thai to foreign employees, but this requirement doesn’t apply to BOI-promoted businesses.
Tax Incentives for BOI-Promoted Companies
Tax benefits are offered by the BOI to support long-term growth and reduce the financial restrictions of doing business in Thailand.
Corporate Income Tax (CIT) Exemptions
One of the most significant incentives available through BOI promotion is the exemption from corporate income tax. Depending on the approved business activity and location, BOI promoted companies may qualify for corporate income tax exemptions of up to 13 years. Additional exemption periods may apply where operations are located within designated industrial estates or investment promotion zones.
For SMEs in Thailand, it is important to understand that corporate income tax exemptions are not automatically granted under every BOI promotion. The availability and duration of tax relief depend on the specific activity approved by the BOI and the terms of the promotion granted.
Careful review of eligibility and location planning is therefore essential when assessing the tax benefits of BOI support. To learn more about whether your business may be eligible for a BOI promotion, please feel free to book a consultation with one of our experts here.
Import Duty Exemptions
BOI companies can import machinery and raw materials used in production without being subject to import duties.
This exemption from import duties on machinery and raw materials necessary for manufacturing export products is usually available for one year, which can be extended.
Additional Tax Benefits
50% reduction in CIT for up to ten years after the expiration of any tax exemption.
Government Policies to Support SMEs in Thailand
The Thai government has introduced a range of policies aimed at strengthening SMEs in Thailand. These initiatives focus on improving access to finance, reducing regulatory barriers, and encouraging innovation across key sectors.
The Office of SMEs Promotion (OSMEP)
The Office of SMEs Promotion (OSMEP) is a government agency in Thailand responsible for creating policy, strategy, and development plans to support Small and Medium-sized Enterprises (SMEs). The OSMEP coordinates between various government ministries and the private sector to promote the growth of Thai SMEs.
Function of the OSMEP
OSMEP was established by the SMEs Promotion Act, B.E. 2543 (2000) and later amended by the Act (No. 2), B.E. 2561 (2018). OSMEP focuses on three areas:
- Policy Formulation: Drafting the National SME Promotion Master Plan (currently the 5th Master Plan).
- Coordination: Acting as the coordinator to align the budgets and projects of over 20+ different government agencies that work on SME support (e.g., Ministry of Industry, Ministry of Commerce).
- Monitoring & Data: Maintaining the national SME database and publishing the annual “White Paper on MSMEs,” which analyzes the economic situation of small businesses in Thailand.
The 5th Master Plan (2023–2027)
Thailand is currently operating under the 5th SME Promotion Master Plan. This roadmap shifts focus from general support to targeted growth. The key strategies implemented by the master plan include:
- Inclusive Growth: Ensuring local community enterprises and micro-businesses can access government procurement.
- Focus on High-Value Sectors: Supporting SMEs in the BCG (Bio-Circular-Green) economy, digital services, and deep-tech.
- Global Access: Helping SMEs meet international standards to export their products.
Key Projects & Services for SMEs
In order to help and support SMEs, the OSMEP operates the following services that can be used by eligible SMEs:
SME One ID:
This is a digital ID system. Registration allows a business to access services from various government agencies without re-submitting documents every time. It essentially functions as a “fast track” for government support.
BDS (Business Development Service) / “SME Pang Tung”:
A co-payment subsidy program where OSMEP pays for 50–80% of the cost for training, testing, lab analysis, or standard certification (e.g., ISO, FDA approval).
Thai SME-GP (Government Procurement):
A dedicated list aimed at allocating government purchasing budgets for SMEs. If you register here, you get preferential treatment (e.g., price preference) when bidding for government contracts.
SME Connext:
An online portal and application that aggregates news, knowledge, and workshop schedules for entrepreneurs.
SME owners should note that they must apply (free of charge) to join OSMEP in order to take advantage of these programs.
Royal Decree to promote the digital transformation of small and medium-sized enterprises (SMEs)
On 24 June 2025, the Thai Cabinet approved a new income tax incentive designed to promote the digital transformation of small and medium-sized enterprises (SMEs).
Under the proposed Royal Decree, eligible businesses can claim a 200% tax deduction on qualifying digital expenses, up to a cap of ฿300,000, incurred between 24 June 2025 and 31 December 2027.
Who is Eligible to This Tax Deduction?
The tax incentive is aimed at SMEs formally registered in Thailand. To qualify, businesses must meet all of the following financial criteria:
- Paid-up capital of not more than ฿5 million at the end of the accounting period
- Annual revenue from sales and services of not more than ฿30 million
This definition aligns with standard SME classifications under Thai tax regulations and ensures the incentive specifically targets businesses that may otherwise lack the capital to invest in digital upgrades. Both Thai-owned and foreign-owned SMEs that meet the criteria are eligible.
Qualifying expenses include the purchase, rental, or subscription of the following:
- Registered digital software (e.g. cloud-based ERP, accounting systems, CRM platforms)
- Smart devices and digital hardware, excluding general-purpose computers (e.g. barcode scanners, POS systems, IoT-enabled machinery)
- Digital services that directly enhance business processes (e.g. e-commerce platforms, AI-enabled analytics, cybersecurity services)
- Computer programs officially registered with DEPA
Key Benefits for Thai SMEs
For SMEs, the Royal Decree creates a valuable opportunity to reduce overall tax burdens. By allowing additional expenses to be treated as deductible costs, the government is providing direct support for business operations, workforce development, and broader economic activity.
The double deduction also makes digital adoption more accessible by reducing the effective cost of investing in new systems and tools. This helps smaller businesses keep pace in a fast-moving digital landscape where technology and operational needs continue to evolve.
Read more:
Thailand Approves 200% Tax Deduction for SME Digital Transformation
Quick Big Win Policy
In November 2025, the Ministry of Finance introduced a new set of measures aimed at strengthening and promoting Thailand’s SMEs. This initiative, developed under the government’s Quick Big Win policy, was approved by the Cabinet in early December.
Under the Quick Big Win policy, a support package worth 327 billion THB will be made available for Small and Medium-sized enterprises (SMEs). The purpose of these funds is to boost liquidity and credit access for SMEs in Thailand.
The 327 billion THB will be available to SMEs in the following forms
- Low interest business loans (217 billion THB)
- SME credit guarantees (50 billion THB)
- Expedited tax refunds (60 billion THB)
Financial Measures to Strengthen SME Liquidity
The Ministry of Finance plans to expand financing options for SMEs by introducing low-interest lending schemes designed to ease access to working capital and strengthen current credit guarantee mechanisms.
A new guarantee facility, backed by the Financial Institutions Development Fund, will also be introduced with more flexible conditions to support a wider range of SME borrowers.
The Bank of Thailand is currently preparing the operational framework so that financial institutions can effectively introduce these measures once approved.
Tax Measures to Promote Fair Competition
As part of the Quick Big Win campaign, two tax initiatives are being considered to strengthen the operating environment for SMEs.
Customs Policy
Beginning 1 January 2026, all goods ordered through online platforms will be subject to import duty from the first baht. The objective is to create fairer competition between domestic sellers and low-cost imports that previously entered the market without being subject to import duty requirements.
Revenue Department Measures
The Revenue Department will also speed up the processing of refund claims so that SMEs receive liquidity sooner. The aim of this policy is to help SMEs manage cash flow during periods of tighter operating conditions.
Expanding Government Procurement from Thai SMEs
Public sector agencies will be encouraged to source a greater share of goods and services from local SMEs. All government purchase orders will be logged in a central digital platform, allowing SMEs to present verified orders as part of their loan applications.
This additional documentation strengthens their credit profile and provides lenders with clearer evidence of upcoming revenue, helping SMEs secure financing more easily.
Key Benefits for Thai SMEs
These proposed measures provide an excellent opportunity to strengthen Thailand’s small and medium-sized sector. By improving access to financing, creating a fairer competitive landscape, and increasing public-sector demand for locally produced goods, the Quick Big Win policy is designed to support SME resilience and promote long-term growth.
Stronger SME Sector and Improved Job Creation
Easier access to financing and improved credit support allow SMEs to scale their operations. As these businesses expand, they generate new employment opportunities and contribute to higher household income across local communities.
More Equal Market Conditions
The application of customs duties on low-value online imports helps reduce unfair pricing pressure on domestic producers. This creates a healthier competitive environment in which Thai SMEs can diversify their offerings and compete more effectively.
Greater Demand for Local Products
Increasing government purchases from Thai SMEs provides steady sales channels and more predictable cash flow. This uplift in domestic demand helps strengthen SME resilience and supports overall economic growth.
Announced Policies Designed to Support SMEs in Thailand
The Thai government has announced a series of proposed policy measures aimed at strengthening the small and medium-sized enterprise sector, with a focus on improving access to finance, promoting fair competition, and supporting long-term business growth.
These initiatives form part of a wider economic reform and reflect the government’s intention to promote SMEs.
The sections below outline the key announced initiatives, including the Quick Big Win policy measures and the Draft Start-up Promotion Act, and explain how they may affect Thai SMEs once formally adopted.
Please note, these policies are still under consideration by the Thai Government so not all details have been released or announced at the time of writing. However, the proposals provide important insight into the policy direction Thailand is taking and highlight potential opportunities and compliance considerations for SMEs operating in the market.
Thailand’s Draft Start-up Promotion Act
The Thai government has announced a draft Start-up Promotion Act for public consultation, designed to support and promote innovation-driven businesses.
Under this proposal, a coordinated institutional system would be created to guide national start-up policy, streamline fundraising options, and provide certified start-up companies with access to a range of regulatory, tax, immigration, procurement, and intellectual property incentives.
The Start-up Promotion Act aims to improve access to capital and skilled talent to encourage and promote Thailand’s start-up competitiveness.
The Draft also proposes the creation of a Start-up Promotion Committee, composed of government representatives, private-sector leaders, and independent specialists. This Committee will be tasked with shaping national start-up policy, approving incentive measures, reviewing listings submitted by the National Innovation Agency, proposing legislative amendments, and handling appeals concerning company eligibility.
Under the framework, the National Innovation Agency would function as the central implementing authority and one-stop service hub. Its responsibilities would include coordinating between state agencies and the private sector, consolidating ecosystem data, offering advisory and technical support, monitoring programme performance, and administering financial assistance such as grants, conditional grants, loans, and co-investment mechanisms.
With Cabinet approval, the Agency would also have the ability to create or co-establish investment vehicles and reinvest income generated through activities carried out under the Draft Act.
Who does the Start-up Promotion Act Apply to?
The Start-up Promotion Act is aimed at start-up businesses whose products or services show strong potential for rapid, scalable expansion and are built around innovation. Eligible businesses must offer at least one of the following; new technology, advanced expertise, or disruptive business models.
A company will qualify as a “Start-up Company” once it is formally listed by the National Innovation Agency as eligible for the incentives and support introduced under the Act.
Who is Considered a Start-up?
To be recognised as a Start-up Company and be eligible for the incentives under the Draft Act, an applicant must meet the following criteria at the time of submission.
Corporate Form and Stage of Development
The business must be a Thai private limited company and generally no more than ten years old on the date of application. This requirement is intended to target early-stage firms with strong growth potential.
Business Scale
The company’s average annual revenue over the preceding three financial years must not exceed THB 300 million. The Start-up Promotion Committee will refine these thresholds and may adopt sector-specific benchmarks to reflect different growth rates across industries.
Control and Distribution History
Eligible companies must not have distributed dividends and cannot operate as a controlled subsidiary of another entity, except in specific circumstances, such as being owned by another qualifying start-up or by an innovation commercialisation entity established by a higher education institution.
Post Approval Requirements
Within two years of being listed on the National Innovation Agency’s sector-based register of Start-up Companies, the Company will need to employ a minimum number of Thai employees.
These thresholds will be set by the Committee and each industry will have their own requirements. The thresholds will be designed to support technology transfer and capability development.
Companies are also required to submit an annual self-certification confirming their continued compliance and eligibility. Failure to meet workforce requirements, failure to certify on time, or a change in eligibility status may lead to removal from the register.
Serious breaches of the rules, including intentional misstatements, improper use of benefits, or significant environmental harm, may result in permanent delisting and recovery of incentives already granted.
Start-up Companies will receive benefits for a five-year period from the date of listing. Deep-technology start-ups operating in priority sectors, such as agriculture or other industries later designated by the Committee, may be eligible for an extension of up to ten years.
Corporate Flexibility for Start-up Financing
To align the Civil and Commercial Code with the requirements of startups in relation to venture financing, the Draft Act introduces a series of targeted exceptions for Start-up Companies listed by the National Innovation Agency.
These exceptions are designed to give start-ups greater flexibility in raising capital, structuring investment deals, and offering equity-based incentives.
The following incentives will apply to start-ups that have been listed on the National Innovation Agency’s sector-based register of Start-up Companies.
Public Share and Debt Offerings
Listed Start-up Companies may offer shares to the public and issue debentures, subject to shareholder approval and compliance with rules issued by the Capital Market Supervisory Board. This provides start-ups with capital-raising routes traditionally available only to more mature companies.
Treasury Shares and Share Buy-backs
Start-up Companies may hold up to twenty percent of their own shares, whether acquired through buy-backs or created as treasury shares. These shares have no voting, quorum, or dividend rights. Buy-backs are allowed where the company’s articles of association provide for them and may be used for purposes such as liquidity management, fulfilling contractual investment arrangements, or safeguarding dissenting shareholders in defined circumstances.
Convertible Preference Shares
The Draft Act will allow companies to convert preference shares into ordinary shares when permitted under the company’s articles of association.
Issuing New Shares to Non-shareholders
With a special shareholders’ resolution and where permitted by the articles of association, Start-up Companies may increase capital and issue shares directly to non-shareholders.
Eligible recipients include:
• directors and employees under an approved equity incentive plan
• investors participating under a shareholder-approved investment agreement
Issuances must begin within one year and be completed within the relevant project period, which may extend to five years for employee plans or two years for investor allocations. Any shares that remain unallocated at the end of the project must be cancelled through a paid-up capital reduction.
Equity Incentives for Talent and Investors
Treasury shares or newly issued shares may be used for equity awards or investment arrangements, provided they follow the approved timelines and conditions. This approach simplifies the use of equity as compensation or investment consideration, which is fundamental to modern start-up growth models.
Venture Investment Mechanics
The Draft Act expressly permits debt-to-equity conversion where the creditor’s rights arose before the special resolution approving the relevant investment agreement. Preferred shares may also be converted into ordinary shares where this is allowed by the company’s articles, with streamlined procedures for issuing new share certificates.
Taken together, these mechanisms support bridge financing, convertible notes, staged investments, and employee stock plans, bringing Thai start-up practice closer to international venture norms.
Additional Rights and Benefits Available to Start-up Companies
As well as the corporate and fundraising flexibility, the Draft Act provides Start-up Companies with access to a range of additional regulatory and economic benefits, subject to applicable laws and administrative procedures.
Talent Mobility
A streamlined application process for foreign specialists with advanced skills needed by start-ups, covering both entry permissions and work authorisation.
Tax Incentives
Potential eligibility for tax deductions or exemptions under the Revenue Code and other tax frameworks, subject to criteria that will be issued by relevant authorities.
Government Procurement Opportunities
Recognition of start-up products and services as priority categories for public procurement, helping new companies secure early reference customers and revenue.
Intellectual Property Support
Enhanced pathways for the protection, licensing, and commercialisation of intellectual property under existing IP and research-utilisation laws.
Investment Promotion Schemes
Access to related benefits under the Investment Promotion Act, other competitiveness-related statutes, and special regulations applicable within the Eastern Economic Corridor.
Integrated Financial Support
Start-ups may receive direct financial assistance from the National Innovation Agency, including grants, conditional grants, loans, co-investments, and coordinated access to public and private funding programmes.
The NIA must also maintain a publicly accessible database, updated at least once a month, consolidating all available benefits, support programmes, and funding opportunities for start-ups, providing clear visibility across the ecosystem.
Key Benefits for Thai SMEs
The Draft Startup Promotion and Act offers a more practical and supportive framework for Thai SMEs looking to grow, raise capital, and compete in a changing economy. By updating corporate rules to reflect the current venture practices, the Act will give smaller businesses access to tools that were previously difficult to use under the traditional Civil and Commercial Code.
One of the most significant advantages is greater flexibility in how SMEs can structure investment, manage share allocations, and design equity plans for employees or early contributors. These features help SMEs attract skilled talent and negotiate with investors on more balanced terms
What Does This Mean for Foreign Investors in Thailand?
For Foreign SME Thailand , the recent and proposed SME focused policies highlight a clear policy direction. Thailand is actively promoting SMEs and start-ups as a central part of its economic strategy, while also beginning to align Thailand’s regulatory, tax, and financing frameworks with international business practices.
Through these proposed initiatives, Thai SMEs may benefit directly from tax incentives, liquidity support measures, and improved access to financing, provided the relevant eligibility thresholds are met. Importantly, many of the announced measures apply equally to Thai-owned and foreign-owned companies.
The proposed tax incentives, such as enhanced deductions for digital transformation, lower the effective cost of technology investment and operational scaling. For SMEs, this allows faster market entry, improved efficiency, and stronger long-term competitiveness, particularly in sectors where digital infrastructure and compliance systems are used.
The Quick Big Win policy measures also have broader implications for SMEs. Changes to customs duties on low-value imports are likely to reduce price distortions created by untaxed cross-border e-commerce, improving competitive conditions for locally established businesses. Also, faster tax refund processing and expanded SME credit guarantees can significantly improve cash flow management for SMEs during early growth stages.
For investors with an innovation or venture focus, the Draft Start-up Promotion Act will provide a clearer legal option for investors, venture capital funds, and entrepreneurs to participate in Thai start-ups using familiar investment tools such as convertible instruments, preference shares, treasury shares, and equity incentive plans. These reforms reduce barriers when negotiating investment terms.
The Act’s proposed initiatives for hiring foreign employees are also very important for foreign investors. Streamlined immigration and work authorization processes for skilled foreign workers would support cross-border team deployment, regional headquarters strategies, and technology transfer into Thailand.
However, while these proposals introduce a lot of positives, they also introduce new compliance considerations. Eligibility thresholds, listing requirements with the National Innovation Agency, post-approval employment obligations, and ongoing self-certification requirements will require careful planning and monitoring.
Foreign investors should assess early whether their Thai structures, revenue profiles, and growth plans align with the proposed frameworks.
Please note that this article is for information purposes only and does not constitute legal advice
