Healthier view for economy spurs new firms

Registrations are likely to top 66,000 in 2017, the Business Development Department forecasts. Last year, 64,288 new companies were registered in the Kingdom, an increase of 7 per cent from the 60,147 registrations in 2015. Combined initial investment value was worth Bt236.77 billion, down by 10 per cent year on year.
Banjongjitt Angsusingh, director-general of the department, said more investors were moving into new businesses, encouraged by the government’s stimulus and investment-promotion measures, especially in infrastructure. The VAT (value-added tax) rate remaining at 7 per cent is also| positive.
“Many government policies will encourage the setting up of new firms, in particularly small and medium-sized enterprises. Many enterprises consider this a good time to start new investments and expand their businesses,” Banjongjitt said.
The department reported that the number of new businesses in December surged 36 per cent year on year to 4,410 firms. Initial investment capital that month decreased 59 per cent year on year, but increased 39 per cent from November to Bt22.25 billion.
The growth in the number of new firms was also attributed to the government’s policy of requiring that the owners of gold and medicine shops register their companies with the department, in order to improve regulatory oversight.
The department reported that 22,576 companies shut down last year, down by 7 per cent year on year. In December, 5,118 companies folded,| a drop of 14 per cent year on year. Some 644,759 companies are actively operating, of which 1,152 are public|companies.