Commerce Ministry sees business boom: Registrations set to soar

The Business Development Department of the Commerce Ministry foresees a positive trend in new business registrations for the year. The projection rides on the anticipated recovery of the tourism sector, thriving e-commerce, and the burgeoning electric vehicles (EV) market.

In the first couple of months of 2024, new business registrations have seen a 1.57% increase, reaching a total of 17,270. The cumulative registered capital has also surged by 14.5%, amounting to 46 billion baht (US$1.3 billion), stated Auramon Supthaweethum, the director-general of the department. The leading categories for these new registrations were general construction, real estate, and restaurants.

The director-general attributed the uptick to several factors. The economy is on the rebound, tourism-related businesses are resuming operations post-pandemic, private consumption and exports are expanding, and significant public infrastructure projects are underway in alignment with the government’s bio-, circular, and green economic model.

Monitoring of inflation, interest rates, and household debt is ongoing by the department to gauge long-term economic conditions. Expectations for new business registrations in the first quarter of 2024 are estimated to range from 23,000 to 27,000. The entire year’s total is projected to be between 90,000 and 95,000, marking a 5 to 15% increase.

New registrations in the e-commerce sector in the initial two months of this year have soared by 32%, totalling 479. The combined registered capital for these businesses has seen a 32.9% year-on-year increase, reaching 555 million baht (US$16 million). More e-commerce businesses are anticipated to register due to the Revenue Department’s mandate for electronic platforms to establish electronic special accounts. These accounts will report revenue from their online merchants and are effective from the start of 2024.

As of February 29, there were 905,544 active legal entities with a combined registered capital of 21.7 trillion baht (US$ 606 billion). These entities consisted of 703,449 limited companies (77.7%), 200,644 limited partnerships and ordinary partnerships (22.2%), and 1,451 public limited companies (0.1%), reported Bangkok Post.

The department is optimistic about an increase in new business registrations this year, driven mainly by higher investments in the EV industry. Investors from both domestic and foreign origins are showing interest in sectors such as electrical control systems, electronic equipment systems, and charging stations.

In 2024, the Foreign Business Committee approved 14 investors from countries like Singapore, China, Hong Kong, Japan, and the US under the Foreign Business Act. These investors brought in a combined registered capital of 22 billion baht (US$614 million).