The Thai Cabinet passed the draft of the "Startup Enterprise Promotion Act" to help the development of start-up enterprises

China News Service, Bangkok, September 8 (Reporter Li Yingmin) The Thai Cabinet held a meeting on the 8th and passed the draft of the "Startup Enterprise Promotion Act", which plans to relax restrictions on start-up enterprise financing and equity management, improve policy support mechanisms, and create a more flexible institutional environment for the development of start-up enterprises.

According to the draft, eligible start-ups can obtain relevant rights and benefits for a period of five years, and the support period for enterprises in specific fields can be extended to a maximum of 10 years. In principle, the applicant company should be a limited company established no more than 10 years ago, with an average annual income of no more than 300 million baht in the past three years, and no profit distribution before.

In terms of financing, the draft intends to give start-ups more room for capital operations, including issuing stocks to the public, issuing corporate bonds, allowing debt to be converted into equity, and converting preferred shares into common shares, etc., subject to compliance with regulations. In addition, companies can attract and retain talents through mechanisms such as share vesting, and are allowed to hold their own shares for employee stock ownership plans and to attract investors.

According to the draft, the National Innovation Agency of Thailand will serve as the main management agency to provide "one-stop" services, coordinate various government departments and private institutions, provide certification, financing and policy support for start-ups, and be responsible for the coordination of intellectual property rights, taxation, foreign talents and government procurement and other related matters.