Doing Business 2018 Thailand
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Doing Business 2018 Thailand
Page 1
Doing Business 2018 Thailand
Economy Profile of Thailand
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Thailand
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Thailand
Ease of Doing Business in DB 2018 Rank
Region East Asia & Pacific
190 1
Thailand
Income Category Upper middle income 26
DB 2018 Distance to Frontier (DTF)
Population 68,863,514
0 100
City Covered Bangkok 77.44
DB 2018 Distance to Frontier (DTF)
0 100
78.43: Malaysia (Rank: 24)
77.44: Thailand (Rank: 26)
66.47: Indonesia (Rank: 72)
62.70: Regional Average (East Asia & Pacific)
58.74: Philippines (Rank: 113)
53.01: Lao PDR (Rank: 141)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Thailand
1 13 16
26
28 36 34
43 42
57
55 67
68
82
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Thailand
100
92.34 90.99
84.10
80 74.58 76.73 75.64
73.33
68.75 70.00 67.91
60
DTF
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Thailand
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â— Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â— Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â— Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â— Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â— Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â— Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â— Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â— Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â— No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â— Official costs only, no bribes
â— No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â— Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Thailand
Starting a Business - Thailand
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement THB 6.3
City Covered Bangkok
Indicator Thailand East Asia & OECD high Overall Best
Pacific income Performer
Procedure – Men (number) 5 7.0 4.9 1.00 (New Zealand)
Time – Men (days) 4.5 22.7 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 6.2 18.4 3.1 0.00 (United Kingdom)
Procedure – Women (number) 5 7.0 4.9 1.00 (New Zealand)
Time – Women (days) 4.5 22.8 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 6.2 18.4 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 15.1 8.7 0.00 (113 Economies)
Figure – Starting a Business in Thailand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
92.34: Thailand (Rank: 36)
83.78: Malaysia (Rank: 111)
82.32: Regional Average (East Asia & Pacific)
77.93: Indonesia (Rank: 144)
72.56: Lao PDR (Rank: 164)
68.88: Philippines (Rank: 173)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Thailand
Figure – Starting a Business in Thailand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
4.5 7
4
6
Cost (% of income per capita)
3.5
5
3
Time (days)
2.5 4
2 3
1.5
2
1
1
0.5
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Thailand
Details – Starting a Business in Thailand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Search and reserve a company name online Less than one day no charge
Agency : Department of Business Development, Ministry of Commerce (online procedure)
Promoters can search and reserve a company name on the Department of Business
Development’s Web site (http://www.dbd.go.th/dbdweb_en/main.php?filename=index).
The name reservation in person at the Department’s Registrar is no longer available as of
14 January, 2013.
3 name options are submitted for approval. Once approved, the name reservation is valid
for 30 days.
2 Deposit paid-in capital in a bank 1 day no charge
Agency : Bank
Once the company gets approval for the memorandum and the articles of association, it
must hold a statutory meeting. The promoters shall hand over the business to the directors
after the meeting. The directors shall thereupon cause the promoters and subscribers to
pay in at least 25% of the registered capital.
Page 8Doing Business 2018 Thailand
3 Register memorandum of association, apply and pay to register the 1 day see procedure details
company as a legal entity (final registration) and obtain TIN
Agency : Partnerships and Companies Registration Office, Department of
Business Development, Ministry of Commerce
At the Single Point Service Center, entrepreneur can register the company, obtain TIN,
register for social security and register for the Workmen’s Compensation Fund. All
documents are submitted and received in one window, within 1 day.
Registration of the Company shall be made within 3 months of the day of the statutory
meeting. Under the Civil and Commercial Code, Section 1111/1, for establishing the
company, the director committee may require memorandum registration and company
registration on the same day. If the promoters complete both steps on the same day, the
required proceedings involving the memorandum promoters are as follows:
(1) To have the subscribers of all the shares registered in the company;
(2) Under Section 1108, to have a statutory meeting to consider any act of company, with
all subscribers and all promoters presenting at the meeting and accepting such act in the
statutory meeting;
(3) To have promoters transfer all business to the director committee; and
(4) To have the directors require every subscriber to pay the amount of shares under
Section 1110 paragraph 2, and have such amount be fully paid.
The required documents for registration of the company which must be signed by the
authorized director(s) and affixed with the company's seal (if required) shall include but
not limited to the followings:
(1) Application form;
(2) Articles of Association;
(3) List of shareholders;
(4) New director form signed by each director;
(5) Declaration of Business Operation form;
(6) List of company registration;
(7) Certified copies of the MOA and the Objectives;
(8) A certified copy of the Notice and Minutes of the Statutory Meeting;
(9) Confirmation of payment of share capital (at least 25%) by all subscribers;
(10) Form for company name reservation
(11) Form of certification of registration of limited company; and
(12) Map(s) showing the location(s) of the registered office(s) of head office and branch
office(s) (if any) of the company.
The promoters prepare the application for registration of the memorandum of association
containing the details specified in procedure 2;
The first statutory meeting shall still be convened, provided that the notice to summon the
first statutory meeting is not required;
The shareholders must pay at least 25% of the registered capital;
The promoters and authorized signatory director must sign the applications for
registration of memorandum of association and for registration of incorporation,
respectively, before Private Limited Companies Registrar, attorney at law, or auditor
registered with the Registrar.
However, if the company has adopted complicated articles of association, the Registrar
may take a few days to review the company's articles of association. In such case, the
registration of company incorporation may be prolonged for a few days or more.
Under the Notice of the Director General of Revenue Department dated 11 January 2012,
which is effective from 1 February 2012, company’s registration number shall be the
same as its tax ID.
Thus, the company is not further required to obtain taxpayer identification number or
card anymore. Employers (with one or more employees) must register their employees
for social security and workers’ compensation insurance at the Social Security Office,
Ministry of Labor. Work regulations are no longer required to be approved by the
Department of Labor Protection and Welfare, however they must be announced and
displayed on the wall within company's premises. ). Later during operations, labor
inspectors can check proper implementation of the work regulations.
Cost:
- Fee for registration of memorandum of association: THB 1,000 (THB 50 for every THB
100,000 of initial capital; minimum THB 500 and maximum THB 25,000)
- Fee for registration of the company: THB 10,000 (THB 500 for every THB 100,000 of
initial capital; minimum THB 5,000 and maximum THB 250,000)
- Stamp duty to be affixed on memorandum of association: THB 200
- Stamp duty to be affixed on articles of association: THB 200
- Certificate of Registration fee: THB 100
- Affidavit fee: THB 200
- Certification document fee: THB 50 per page.
Page 9Doing Business 2018 Thailand
4 Register for Value Added Tax 1 day no charge
Agency : The Revenue Department
VAT registration is mandatory for all companies whenever the company revenues hit the
threshold of THB 1.8 million. The provision of the Thailand tax code can be found on the
Revenue Department’s website: www.rd.go.th.
The company shall apply the application at Bangkok Area Revenue Office where the
company office located and must submit the following documents:
•01Application for VAT Registration in 3 copies (photocopy not accepted)
•Rental Contract (affixed with stamp duty) or Letter of Consent from owner of the
Building and Household Registration of such Building.
•Photocopy of I.D. Card, Household Registration of the lessor.
•Documents showing ownership of the lessor such as sell and purchases contract, transfer
of ownership.
•Map showing the location of the Building.
•Photograph of the office with signboard name and number of the Building.
•Certified letter from the Ministry of Commerce (issued within 6 months) together with
Articles of Association, regulation and details of the Objective of the company.
In case the company revenue less than 1.8 million THB, the company shall submit
Por.Por.01-1form.
Alternatively, the Revenue Department has recently introduced the possibility of VAT
registration through an online system. The online registration process is as follows:
(1) Complete an online application form for VAT registration (no user account is required
for registration);
(2) Submit the online application via the electronic service on the website of the Revenue
Department (http://vsreg.rd.go.th/); and
(3) The Revenue Department will notify the applicant for completion of VAT registration
by e-mail within 15-days from the submission date of the online application.
However, the usage of the online platform for VAT registration is not yet widespread, and
entrepreneurs continue visiting the Revenue Department in person in order to register for
VAT.
5 Register employees with the Social Security Office 1 day no charge
Agency : Social Security Office
An employer and each employee must be registered as an insured person with the Social
Security Office ("the SSO"). The employer shall collects the application form at Social
Security Office where the company located and submit the registration form at the Zone
Office of Social Security.
The employer is responsible to submit the following documents to the SSO within 15
days after hiring at least 1 employee:
- employer and employee registration forms (Form SSO 1-01 and SSO 1-03)
- a photocopy of company registration with objectives
- a photocopy of VAT registration (Pro.Por20) or request of VAT registration (Por.Por.01)
or special business tax registration or license of factory establishment
- Map of working place
- letter of power attorney (if applicable) and photocopy of I.D. of the authorized person.
Takes place simultaneously with previous procedure.
Page 10Doing Business 2018 Thailand
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â— Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â— Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â— Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â— Does not include time spent gathering information The warehouse:
â— Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â— Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â— No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â— Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â— Sum of the scores of six component indices: The water and sewerage connections:
â— Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â— Quality control during construction (0-3)
installed or built.
â— Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â— Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 11Doing Business 2018 Thailand
Dealing with Construction Permits - Thailand
Standardized Company
Estimated value of warehouse THB 9,908,909.40
City Covered Bangkok
Indicator Thailand East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 18 15.2 12.5 7.00 (Denmark)
Time (days) 104 138.2 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 0.1 2.2 1.6 0.10 (5 Economies)
Building quality control index (0-15) 11.0 8.9 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Thailand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
82.19: Malaysia (Rank: 11)
75.25: Lao PDR (Rank: 40)
74.58: Thailand (Rank: 43)
69.60: Regional Average (East Asia & Pacific)
66.84: Philippines (Rank: 101)
66.08: Indonesia (Rank: 108)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Thailand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.12
100
Cost (% of income per capita)
0.1
80
0.08
Time (days)
60
0.06
40
0.04
20
0.02
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 * 15 16 17 18
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 12Doing Business 2018 Thailand
Figure – Dealing with Construction Permits in Thailand and comparator economies – Measure of Quality
15
13.0 13.0
12.0
11.0
Index score
10 8.9
6.5
5
0
Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific
Details – Dealing with Construction Permits in Thailand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request a building permit from the Bangkok Metropolitan Authority 1 day THB 650
Agency : Bangkok Metropolitan Authority
An application for a permit to construct, modified, remove, or reallocate a building is
required for any building. For buildings of no more than 23 meters in height or 10,000
square meters in area, the application must be submitted to the relevant District Office
with the following documents attached:
• A copy of the applicant's corporate registration
• A copy of the land title deed
• The personal and tax identification cards of the applicant
• Written permission of the architect and a copy of a valid professional license
• Written permission of the design/calculation engineer and a copy of a valid professional
license
• Written permissions of the architect and engineer who will be the construction
supervisors and copies of their valid professional licenses
• Building plan
• A calculation of building structure
• For an industrial factory, hospital, fresh market, condominium, apartment, and any
undesirable commercial building, details of the water treatment system and its calculation
must be provided.
The fees vary depending on the actual space area and size of the building:
• THB 0.50 per square meter for a building not taller than 12 meters or two floors
• THB 2.00 per square meter for a building taller than 12 meters but not more than 15
meters or three floors
• THB 4.00 per square meter of the entire building space area for a building taller than 15
meters or three floors In the case considered here, the cost is THB 0.50 per square meter.
A notice to the local authority in lieu of the building permit could be made. The
application could be submitted to the local authority in a situation where construction
work must be commenced urgently.
The following supporting documents must be attached to the application to the local
authority:
• A copy of the applicant's corporate registration
• A copy of the land title deed
• Tax identification card of the applicant
• Written permission of the senior professional architect and a copy of a valid senior
professional license
• Written permission of the senior professional design/calculation engineer and a copy of
a valid senior professional license
• Written permissions of the architect and engineer who will be the construction
supervisors and copies of their valid professional licenses
• Certificate of building design
• Building plan
• Calculation of the building area
Acknowledgement of the notification is normally granted within the day of filing the
complete application. The cost is the same as for obtaining a building permit.
2 Receive pre-approval inspection from the Bangkok Metropolitan Authority 1 day no charge
Agency : Bangkok Metropolitan Authority
Before the plan approval, the municipal authority inspects the site to confirm that the
drawings submitted accurately represent the project on site. The building control officers
of the Bangkok Metropolitan Authority process this approval.
Page 13Doing Business 2018 Thailand
3 Obtain a building permit from the Bangkok Metropolitan Authority 30 days no charge
Agency : Bangkok Metropolitan Authority
As of April 1, 2013 the Bangkok Metropolitan Administration (BMA) now allows district
directors to act on behalf of the Bangkok Governor under Building Control Act B.E. 2522
(1979) for simple buildings. The district director can issue the building approval for
buildings that are not more than 10,000 sq. m. and not taller than 23 meters. This fast-
track option has significantly reduced the time to obtain the building permit.
4 Notify the Bangkok Metropolitan Authority on the commencement of 1 day no charge
construction works
Agency : Bangkok Metropolitan Authority
After the building permit has been granted, the name of the construction supervisor must
be given to the Bangkok Metropolitan Authority with the permission of that supervisor.
The latter could be any qualified person, including the building owner, unless that person
is prohibited by the regulations of the Engineering or Architectural Profession Act.
It is assumed that one of BuildCo’s employees or owners satisfies the requirements for
being a construction supervisor. It is common for the supervisor to be the owner or one of
the employees of the construction company. The construction supervisor should verify
building conditions periodically.
BuildCo must also submit a notification to commence construction works.
5 Receive random inspection - I 1 day no charge
Agency : Bangkok Metropolitan Authority
BMA will inspect the site about once per month to check for any violations during the
construction phase. If there are complaints from others around the construction site, there
will be more frequent inspections.
6 Receive random inspection - II 1 day no charge
Agency : Bangkok Metropolitan Authority
7 Receive random inspection - III 1 day no charge
Agency : Bangkok Metropolitan Authority
8 Receive random inspection - IV 1 day no charge
Agency : Bangkok Metropolitan Authority
9 Receive random inspection - V 1 day no charge
Agency : Bangkok Metropolitan Authority
10 Receive random inspection - VI 1 day no charge
Agency : Bangkok Metropolitan Authority
11 Receive random inspection - VII 1 day no charge
Agency : Bangkok Metropolitan Authority
12 Request water connection 1 day no charge
Agency : Metropolitan Water Work Authority (MWA)
BuildCo must contact the local office of the Metropolitan Water Work Authority (MWA)
to request a water connection. MWA will then conduct an on-site inspection a few days
later.
13 Receive onsite inspection for water connection 1 day no charge
Agency : Metropolitan Water Work Authority (MWA)
14 Request and obtain sewage connection 30 days THB 150
Agency : Wastewater Management Authority (WMA)
The sewage connection is conducted by the Wastewater Management Authority (WMA).
There is no inspection that is needed. The fee is THB 1 per meter.
Request and obtain water connection 10 days THB 9,500
15 Agency : Metropolitan Water Work Authority (MWA)
16 Request occupancy permit 1 day no charge
Agency : Metropolitan Bangkok Authority
17 Receive final inspection 1 day no charge
Agency : Bangkok Metropolitan Authority
18 Obtain occupancy permit 30 days THB 20
Agency : Metropolitan Bangkok Authority
Takes place simultaneously with previous procedure.
Page 14Doing Business 2018 Thailand
Details – Dealing with Construction Permits in Thailand – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer;
Unscheduled
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 15Doing Business 2018 Thailand
What are the qualification requirements for the professional who supervises the construction University degree 1.0
on the ground? (0-2) in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 16Doing Business 2018 Thailand
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â— Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â— Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â— Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â— Is at least 1 calendar day
The warehouse:
â— Each procedure starts on a separate day
â— Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â— Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â— Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â— Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â— Duration and frequency of power outages (0–3)
The water and sewerage connections:
â— Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â— Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â— Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â— Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 17Doing Business 2018 Thailand
Getting Electricity - Thailand
Standardized Company
Price of electricity (US cents per kWh) 13.5
Name of utility Metropolitan Electricity Authority
City Covered Bangkok
Indicator Thailand East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 4 4.5 4.7 2 (United Arab
Emirates)
Time (days) 32 71.6 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 63.1 712.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 7 3.7 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Thailand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
94.33: Malaysia (Rank: 8)
90.99: Thailand (Rank: 13)
84.31: Philippines (Rank: 31)
83.87: Indonesia (Rank: 38)
72.23: Regional Average (East Asia & Pacific)
52.65: Lao PDR (Rank: 149)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 18Doing Business 2018 Thailand
Figure – Getting Electricity in Thailand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
70
30
60
Cost (% of income per capita)
25
50
Time (days)
20
40
15
30
10
20
5 10
0 0
1 2 *3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Thailand and comparator economies – Measure of Quality
8
8
7
7
6
Index score
5 5
5
4 3.7
3
2
2
1
0
Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific
Page 19Doing Business 2018 Thailand
Details – Getting Electricity in Thailand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to MEA and await estimate 7 calendar days THB 125,050
Agency : Metropolitan Electricity Authority (MEA)
The customer can submit the application for connection online. The cost estimate is
provided after site inspection - but if GIS data is available, no site inspection is needed
(less than 50% of cases).
Documents required for the application are copy of identification card, copy of census
registration, copy of contract of sales, rent, lease, copy of company affidavit, power of
attorney document as well as location map, single line diagram, load schedule and
electricity line diagram, detail of use (e.g. areas, machine, electric equipment and type of
building). Usually, the representative of the owner of the warehouse would submit the
application.
2 Await completion of external works by MEA 18 calendar days THB 0
Agency : Metropolitan Electricity Authority (MEA)
The utility conducts the external connection works. All cable and equipment for external
connection are provided by utility. If a transformer needs to be installed, it would belong
to the utility and other customers would use the transformer as well. The connection fee
by MEA is based on a 140 meters connection. For 150 meters, the client would have to
pay the cost for 10 meters of cable in addition to the connection fee.
3 Request and receive internal inspection by MEA 2 calendar days THB 0
Agency : Metropolitan Electricity Authority (MEA)
The client submits a request for an internal wiring inspection by the utility. The client has
to be present during the inspection.
4 Receive meter installation, final connection and electricity flow from MEA 7 calendar days THB 0
Agency : Metropolitan Electricity Authority (MEA)
After the connection is finished, the Meter Service Section of the utility installs the meter.
After that the final connection is done by the Distribution System Maintenance Section
and electricity starts flowing.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2018 Thailand
Details – Getting Electricity in Thailand – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 7
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.5
System average interruption frequency index (SAIFI) 1.0
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online http://www.mea.or.th/
profile/index.php?
l=en&tid=3&mid=258
&pid=109
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2018 Thailand
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â— Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â— Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â— Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â— Does not include time spent gathering information
- Is fully owned by the seller.
â— Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â— Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â— No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â— Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â— Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â— Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â— Transparency of information index (0–6)
â— Geographic coverage index (0–8)
â— Land dispute resolution index (0–8)
â— Equal access to property rights index (-2–0)
Page 22Doing Business 2018 Thailand
Registering Property - Thailand
Standardized Company
Property value THB 9,908,909.40
City Covered Bangkok
Indicator Thailand East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 5 5.5 4.6 1.00 (4 Economies)
Time (days) 7 74.5 22.3 1.00 (3 Economies)
Cost (% of property value) 7.3 4.3 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 18.0 15.8 22.7 29.00 (Singapore)
Figure – Registering Property in Thailand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
76.06: Malaysia (Rank: 42)
69.55: Lao PDR (Rank: 65)
68.75: Thailand (Rank: 68)
59.01: Indonesia (Rank: 106)
57.55: Philippines (Rank: 114)
57.21: Regional Average (East Asia & Pacific)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Thailand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
7 7
6 6 Cost (% of income per capita)
5 5
Time (days)
4 4
3 3
2 2
1 1
0 0
1 *2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 23Doing Business 2018 Thailand
Figure – Registering Property in Thailand and comparator economies – Measure of Quality
30 27.5
25
Index score
20 18.0
15.8
15 12.5
11.3 10.5
10
5
0
Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific
Details – Registering Property in Thailand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Conduct title search 1 day THB 10
Agency : Land Office
The buyer conducts the title search at the Land Office.
2 Lawyer conducts a bankruptcy search 1 day No cost
Agency : Bankruptcy Court
The lawyer would conduct a search at the Bankruptcy Court in Bangkok to ascertain
whether the parties of the transaction had or are involved in an insolvency procedure.
Although the records are computerized, lawyers do not have access to this database and
therefore they have to visit the Court to search for this information.
This procedure is not mandated by law, nor required by the Lands Department. However,
it is a common due diligence procedure to properly investigate any liability that could
affect the transaction.
3 Obtain certified copies of companies’ documents from the Ministry of 1 day THB 200 (Affidavits)
Commerce + THB 700 (MoA,
Agency : Ministry of Commerce AoA)
Parties obtain from the Ministry of Commerce the following documents:
• Companies' Affidavits confirming the name, address, the amount of registered capital,
names of directors and the authorized signatories. (THB 100)
• Certified copies of the Memorandum and Articles of Association of each party (THB 50
per page, cost of certification)
• List of shareholders of the company from the Ministry of Commerce to prove their
nationality.
On average, the Memorandum of Association (MoA) has 2 pages and the Articles of
Association (AoA) about 5 pages.
4 Lawyers prepare the sale agreement and the parties sign it 3 days Approximately THB
Agency : Lawyer's office 100,000
It is common to require the services of an attorney to transfer the property. After
conducting the due diligence, the lawyer drafts the sale agreement and the parties sign it
Page 24Doing Business 2018 Thailand
5 Parties submit the application for the registration at the Land Office 1 day 2% of appraised
Agency : Land Office value (registration
The seller and the buyer, or their representatives, must go to the Land Office where the fee) + 1% of sale
land is located, and submit an application to register the sale of the land and the buildings price or appraised
thereon.
value, whichever is
higher (withholding
The Land Officer checks all the documents (from both the seller and the buyer) submitted
tax) + 3.3% of sale
with the application. He will also compare the original title deed with the original copy
kept at the Land Office. All information in both original title deeds must be the same. If price or appraised
everything is consistent, he will proceed with the registration of the transfer of value, whichever is
ownership. An official sales agreement is prepared and signed by the authorized higher (Specific
representatives of the seller and buyer. The officer then records the sales transaction at the Business Tax)
back of the original land title deeds (both the land owner's and the Land Office's copies).
The Land Officer calculates all the registration fees and expenses and asks the parties to
pay and submit to him the receipts. The registration fee is 2% of the appraised value
calculated by the Bureau of Property Valuation (GAV) and announced by the Treasury
Department, Ministry of Financed every 4 years (Government Appraised Value (GAV)).
The seller has to pay a 1% withholding tax on sale price or GAV - whichever is higher.
(Seller may apply this as a credit towards their corporate income tax on any capital gain).
As the seller is a company, withholding tax is calculated on the greater of the appraised
value and the sale price.
The seller has to pay stamp duty, which is 0.5% of the appraisal value if holding period
for the individual is more than 5 years. If not, the transfer will be subject to the Specific
Business Tax (SBT). This SBT implies that the Seller has to pay 3.3% of the appraisal
value or the sales price, whichever is higher. The 3.3% SBT includes a 0.3% municipality
tax.
The SBT is imposed on persons who sell their property for trade or a profit-seeking
purpose. Companies who sell real property in Thailand are deemed to be selling for trade
or profit and are subject to specific business tax. Even if a company sells property in
order simply to move to a new place, it is still deemed to have sold for a trade or profit
seeking purpose.
Accordingly, the company who is the seller in this example will be subject to SBT. The
registration fee, withholding tax and SBT are collected by the Land Office. The cheques
for the taxes are payable to the Ministry of Finance but collected by the Land Office.
The Land Officer then attaches the receipts to the application, and submits all documents
to the Chief in charge who is authorized to approve the registration of the transfer. Once
the registration is approved, it is deemed completed. The seller will receive one copy of
the registered sale agreement. The buyer will receive another copy of the registered sale
agreement and the original Land Title Deed.
The Seller will need to produce the construction permit and household registration of the
building as evidence to transfer the building.
Takes place simultaneously with previous procedure.
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