Market

Q1/ 67 Total number of legal entity registrations exceeds 25,000.

Nonthaburi, The Department of Business Development reveals that in 2024, the Thai economy will continue to show signs of growth. The private sector is actively investing in businesses. Total registrations to establish legal entities in the first quarter exceeded 25,000, with registered capital of 68 billion baht, while Muna businesses are keeping an eye on them. Legal entities and individuals jump in to share market share. Many provinces promote Saimu tourism to bring in local income. Mrs. Oramon Sapthaweetham Director-General of the Department of Business Development revealed that In the first quarter of 2024 (January - March), the Thai economy continues to show signs of recovery. And it is a time that needs to be especially watched. Because this is the year that we begin to enter into normal economic activities. After recovering from the COVID-19 outbreak situation, the Department would like to project a growing economy through the number of new business registrations in the first quarter of 2024, totalin g 25,003 with a total registered capital of 67,940.55 million baht. The top three businesses with the highest number of registrations are: 1) general building construction businesses, 1,957 businesses, with a capital of 4,193.26 million baht, 2) real estate businesses, 1,907 businesses, with a capital of 8,093.65 million baht, 3) restaurant/restaurant businesses, 1,093 businesses, with a capital of 2,302.26 million baht. The combined establishment of 3 businesses in the 1st quarter of 2024 totaled 4,957 persons, accounting for 19.83% of the total number of registrations established in the 1st quarter of 2024, and had registered capital. 14,589.17 million baht, accounting for 21.47% of the total registered capital in the 1st quarter of 2024. When comparing quarterly, it was found that total business registrations decreased by 1,179 persons or 4.50% when compared to the first quarter of 2023 and registered capital decreased by 271,645.88 million baht or 79.99% when compared to the first quarter of 2023 (first quarter of 2023, 26,182 businesses were established registered capital of 339,595.43 million baht) However, the number of new business registrations in the 1st quarter of 2024 is still considered a high number when compared to the past 10 years, second only to the number of registrations in the 1st quarter of 2023 (1st quarter of 2023 registered 26,182 cases) Accumulated business registration data is divided by business sector in the 1st quarter of 2024, consisting of 14,257 businesses in the service sector, 8,288 in the wholesale/retail sector, and 2,458 in the manufacturing sector, accounting for 57.02%, 33.15%, and 9.83% of the country's total registrations, respectively. The details are as follows: 1) Service sector includes general building construction business, 1,957 cases, real estate business, 1,907 cases. and restaurant/restaurant businesses: 1,093 2) Production sector includes other crop growing businesses. Spices, fragrances, and medicines: 135 cases, perfumery, cosmetics, and bathroom product manufacturing businesses: 115 cases, and industrial machinery and equipment installation businesses: 78 cases. 3) Wholesale/retail sector, including 643 internet retail businesses and other product retail businesses. In general stores, 465 cases and wholesale businesses of machinery and other equipment, 347 cases. For March 2024, there were 7,733 business establishment registrations with a registered capital value of 22,146.14 million baht. Compared to March 2023, the establishment rate decreased by 1,446 businesses or a decrease of 15.75% and the registered capital decreased by 277,462.39 million baht or a decrease of 92.61% when compared. with March 2023 There is a distribution of business growth in every area, divided into Bangkok with 7,296 establishments and 17,707 establishments in regional areas. The top 3 provinces in the region with the highest number of business establishments are: 1) Chonburi, 2,211 establishments, capital 9,874.49 million baht. 2) Nonthaburi 1,420 people, capital 2,918.91 mill ion baht and 3) Samut Prakan 1,340 people, capital 3,573.47 million baht. Business registration information In the first quarter of 2024, there were 2,809 businesses that ceased operations. The top 3 businesses with the highest cumulative number of discontinuations were general building construction businesses with 296 cases, real estate businesses with 154 cases, and restaurant/restaurant businesses with 107 cases. However, as of March 31, 2024, there were a total of 1,902,239 business registrations with a registered capital of 29.83 trillion baht, with 912,297 juristic persons operating with a capital of 22.10 trillion baht, divided into 709,556 limited companies with a capital of 15.88 trillion baht, limited partnerships and 201,283 juristic general partnerships. Total capital of 0.48 trillion baht and 1,458 public limited companies with capital of 5.74 trillion baht, accounting for 77.78%, 22.06% and 0.16% of legal entities operating throughout the country, respectively. The business types with intere sting growth in the 1st quarter of 2024 include: 1) Entertainment activities There was a growth of 64.00% in establishments compared to the same period of 2023 due to the expansion of the use of social media platforms for entertainment. and current online marketing activities that focus on entertainment (Shoppertainment) for the growth rate of registered capital value is 777.23% compared to the same period of 2023. 2) Furniture retail business There is a growth of establishments at 57.78% because Thai furniture is liked by foreigners. And Thailand also has strengths in raw materials such as wood, rattan, and rubber, etc. The growth rate of registered capital value is 46.83%. 3) Wholesale business of automotive parts and accessories Establishment growth was 47.62%. This will grow as the amount of vehicle registrations increases. that has various accessories decorated for vehicles For beauty and use In addition, the economic situation is volatile, making consumers Choose to repair original vehicles Includin g the replacement of spare parts or automotive parts that deteriorate over time. instead of buying a new vehicle 4) Spa activities have a growth rate of 35.59% because Thailand is an elderly society and needs relaxing activities. In addition, foreigners who come to travel in Thailand Like spa activities and Thai herbs The growth rate of registered capital value is 30.29% compared to the same period of 2023. 5) Hotel, resort and apartment business The growth rate of the number is 37.75%, with the majority being small businesses (S) over 99.00% due to the continuous expansion of Thai and foreign tourists. from global tourism demand that remains at a high level In addition, the government's tourism measures are continuously in place. However, these businesses As a result, the number of business registrations is in a positive direction, with 9 times the number of business establishments in Q1/2024 compared to the number of business closures (Q1/2023 there were only 8 times the number of business establishments compared to the number of business closures). cessation of business) The Department of Business Development expects that the registration of legal entities in the first half of 2024 will have a positive trend. It is estimated that the number of business registrations in the first half of 2024 will be 46,000 - 50,000. However, in addition to the entertainment business, there is also the "Belief and Faith Business" or "Sai Mu Business" that has grown greatly in the past 5 years and has continued to gain popularity until now. The business has changed 'Faith' into products and services to satisfy each group of consumers. By using the science of Muketing to plan marketing strategies (Muketing: MU + Marketing), both online and offline marketing. Including using it to promote products/services. By organizing campaigns to reach more consumers in all groups. Through influencers, experts related to beliefs or famous people come to build credibility. To create a shared emotional/feeling experience with consumers, such as mobile phone screen wallpapers. Apparel, bags, home decoration items such as bedsheets that use the auspicious colors according to birth month and year of birth as a marketing selling point. Various jewelry, bracelets, necklaces that have sacred things such as Lord Ganesha, Thao Vessuwan, various auspicious stones designed in a fashion style, cosmetics that have been consecrated with gold or herbs that are believed to enhance various auspicious things. Come as an ingredient Lucky phone number including real estate businesses, condominiums, housing developments The science of belief and faith has been used to add value to products and increase the opportunity for consumers to make purchasing decisions, such as designing them according to Feng Shui principles. Changing the color of the house and various rooms To be lucky with the buyer or decorate the house that matches the horoscope of the consumer, etc. Year 2019 - 2023 Belief and faith businesses have increased business registration rates. In 2019, 11 c ompanies were registered with a registered capital of 15.4 million baht. In 2020, 11 companies were established with a capital of 7.59 million baht (decreased by 7.81 million baht or 50.71%). 2021 established 20 persons (increased by 9 persons or 81.81%), capital 13.41 million baht (increased 5.82 million baht or 76.70%). Year 2022 established 24 persons (increased 4 persons or 20.00%), capital 27.45 million baht (increased 14.04 million). baht or 104.70%) and in 2023, 33 were established (increased by 9 or 37.50%) with a capital of 26.88 million baht (decreased by 0.57 million baht or 2.08%), while in January-March 2024, 12 were established with a capital of 7.51 million baht. Currently (information as of March 31, 2024), the belief and faith business has a total of 134 legal entities operating with a total registered capital of 135.89 million baht. They are all small businesses (S), divided into 108 limited companies, 26 limited partnerships/ordinary legal partnerships. It is a proportion of 80.60% and 19. 40% of the juristic person doing business, respectively, while the total registered capital is divided into a limited company of 116.64 million baht and a limited partnership/ordinary partnership of 19.25 million baht, representing a proportion of 85.83% and 14.17% of the juristic person doing business, respectively. All are investments by Thai nationality. In addition, many provinces use the trend of faith as a tourist highlight to bring in local income. It is 'faith-based' tourism which is becoming very popular. Not only Thai tourists There are also foreign tourists. Especially Asians Popular to travel to pay homage to sacred things in Thailand Because they have similar cultural roots and beliefs. Faith tourism is considered an important source of income for Thailand. Can distribute income to other businesses Whether it's a hotel, restaurant, community product store. There is a distribution of income to the local area. "Stimulating the economic system" as a whole of the country very well The business of f aith or Mutelu science is popular among all age groups. Each age group has a method. different mutelu The group with relatively high beliefs is Gen Z, with most of their access to information coming from social media. This is consistent with the behavior of Gen Z, who have the highest internet access than any age group. If a business can develop products and promote marketing directly to the group It will affect the opportunity to sell products and services higher as well. Source: Thai News Agency