Key facts
- A new startup promotion law in Thailand is anticipated to be implemented by the end of the year.
- The National Innovation Agency (NIA) will serve as the principal coordinator for the initiative.
- The law aims to simplify government support and incentives for eligible startups.
- Registered startups will benefit from exemptions from certain legal restrictions and receive financial assistance.
- A Startup Promotion Committee will be formed to guide national startup development policies.
Thailand is preparing to launch a new law by the end of this year aimed at bolstering its startup ecosystem. Krithpaka Boonfueng, executive director of the National Innovation Agency (NIA), announced the upcoming legislation, which is designed to simplify government support programs and incentives for emerging businesses.
The draft Startup Promotion Act seeks to address challenges faced by startups by reducing administrative burdens and economic risks. To be eligible for registration and benefits under the act, companies must meet specific qualifications, including operating for no longer than 10 years from incorporation and adhering to limits on annual revenue, dividend payments, and ownership. Businesses will need to submit documentation to certify their eligibility and renew it annually.
Startups registered under the act will gain exemptions from certain restrictions found in general law, particularly the Civil and Commercial Code. These exemptions may cover areas such as offering shares to the public, holding their own shares, and converting preferred shares. Additionally, registered startups will be eligible for government financial support and assistance in scaling their operations and connecting with other ecosystem players.
The NIA will function as the main governmental authority responsible for driving the promotion and development of Thailand's startup landscape. A new Startup Promotion Committee will also be established, comprising experts and representatives from government and the private sector, to formulate and implement national policies for startup development. The committee's members will include representatives from the Securities and Exchange Commission and the Thailand Board of Investment.