New business registrations rise 33 per cent year on year in August

September 28, 2022

More than 7,400 new firms were registered in August, a sharp 33 per cent increase year on year, the Business Development Department said on Wednesday.

Thosapol Thangsubut, director-general of the department, said 7,418 new limited partnerships and limited companies were registered in August, up 27 per cent over the previous month and 33 per cent more than in August last year.

He said the new firms have a combined registered capital of 24.393 billion baht and the top three registered businesses are construction firms, property developments and restaurants.

Thosapol noted that restaurants are the third highest number of new businesses registered for seven consecutive months.

He noted that the high number of new restaurants being registered could be attributed to the recovering economy and tourism after Thailand fully reopened to foreign tourists.

Thosapol said the high number of new businesses being registered in recent months was proof of investors regaining confidence after the country allowed businesses to resume operations fully following the Covid-19 pandemic. The fact that schools and universities have resumed normal classes and foreign arrivals are on the increase also have boosted the confidence of business operators, he added.

Meanwhile, a total of 1,941 businesses reported an end to their operations in August, an increase of 26 per cent compared to July and 65 per cent compared to August last year. The top three sectors that registered the most number of closures in August were also in the same sectors as new business registrations – construction, property and restaurants, Thosapol said. The 1,941 firms had registered capital of 12.5 million baht.

During the first eight months of this year, 53,577 new businesses registered with registered capital of 334.109 million baht, while 9,493 firms with registered capital of 78.163 million baht reported end of operations.

Thosapol said his department expects about 68,000 to 72,000 businesses would be registered this year.

As of August 31, there are 849,410 registered businesses operating in the country with total registered capital of 20.39 trillion baht. The businesses comprise 203,074 partnerships, 644,971 limited companies, and 1,365 public companies, Thosapol said.

Source: The Nation