BOI Thailand

BOI Thailand helps foreign businesses establish their companies in Thailand and ensures that their activities and business practices will benefit the kingdom. 

 

The process of the BOI application is quite strict in that it must comply precisely with the regulations and the requirements of the application because its focus is on providing new technology and benefits to Thailand through foreign investors.

 

The Board of Investment Law is a promotional policy created by the Thai government in 1954 upon the announcement of its Industrial Promotion Act. 

 

The government began actively promoting and subsidising incentives for foreign businesses willing to open and operate in the Kingdom of Thailand.

 

The BOI law is still enforced today, and through it, the government guarantees to neither interfere with nor nationalise foreign businesses. It is interesting to note that the Kingdom of Thailand was the first country in this region to have such an investment law.

 

The objectives of BOI Thailand

 

The BOI has three key roles to play:

 

  • Promoting investment opportunities in Thailand and foreign countries
  • Developing and innovating technology in the country
  • Increasing the economic growth of the country

 

The Board of Investment operates directly under the office of the Prime Minister.

 

What is a BOI Company?

A BOI Company is a company that is a foreign investment company that has been certified by the Thailand BOI, a government body whose aim is to encourage foreign investment in Thailand.

 

Your business can enjoy a range of benefits by being certified by the BOI. There are many many advantages of setting up your BOI company in Thailand. Among these are significant tax waivers, multiple work permits, reduced processing times for work permits, and the ability to own land even if your company is majority-owned by non-Thai nationals.

 

What are the benefits of a BOI Company?

BOI companies can enjoy specific tax and non-tax incentives. These incentives may be specifically attractive to foreign investors, without which they may be subject to stringent rules and regulations in conducting their business in Thailand.

Tax Incentives

A BOI certified company may be eligible for an exemption of Corporate Income Tax for a period of up to 8 years. They may also qualify for an exemption from or reduction of import duties for raw materials, as well as a tax decrease on the payable dividends to shareholders.

 

Further tax incentives may include deductions on the company’s transportation, electricity and water usage, and the installation costs of the project’s infrastructure. Summarised below:

 

  • Corporate income tax exceptions
  • Reductions of import duties on machinery and raw material
  • Tariff exemptions
  • Double exemptions on the costs of water supply, electricity and transportation
  • 25% exemption on the cost of construction of facilities

 

Non-Tax incentives

Non-Tax privileges allow a BOI promoted company to hire foreign skilled workers and experts instead of the non-BOI policy of hiring four Thai employees for every one foreign employee.

 

The BOI also provides an express procedure through its One-Stop visa process for both non-immigrant visas and work permits. These non-tax incentives also allow 100% foreign ownership of the BOI company and the option for the foreign company to own land in the Kingdom. 

 

  • Exemptions on ownership of companies by foreign investors
  • Exemptions from standard visa rules
  • Permission to bring skilled foreign workers and experts to work
  • Permission to own a land
  • Permission to remit foreign currency abroad

 

How do I apply for a BOI company in Thailand?

Should you wish to register your company for BOI, the following steps will be necessary to complete. These steps have been summarised, but you will access all the details once you begin the process.

 

  1. Do a feasibility study.
  • You will need a legal entity to study your BOI project idea and present it before government officials who will provide relevant insight on the project and whether or not it will be successful.
  • This allows for any changes to be made before submitting your application.
  1. The BOI application

 

  • After receiving your revised BOI plan and strategy, lawyers will prepare your application form with the required documents (based on your business) attached.
  • The application forms and attached documents will be submitted to the relevant government officials. They will monitor the progress of and assist us in meeting each requirement at every stage of the application.

 

  1. Approval by the Board

 

  • Once your application has been submitted to and received by the BOI, you will receive a written notice after seven working days as to whether your application has been approved or not.
  • The board will inform you of the specific benefits assigned concerning your BOI project if your application is successful.
  • After this, you will be required to submit a separate application form to issue your company’s BOI promotion certification. Once you have received the approval receipt from BOI Thailand, you will be required to complete and submit all necessary details within thirty working days.

 

Registering a BOI Thailand Company

After a successful BOI application, and if you wish to receive your BOI promotion certification, you must set up the Thai company within six months after being approved. At this time, you must submit the following documents:

  • Your BOI promotion certification application form
  • The company registration certificate
  • The memorandum of association
  • List of shareholders
  • Certification includes the registered capital, the authorised directors' names and addresses, and the registered physical company address.
  • An investment certificate from the Bank of Thailand or receipts of funds transfers from foreign countries.
  • A technology transfer agreement
  • A franchise agreement
  • A JV contract
  • A form that includes all your human resource requirements

How do I know if my company is BOI eligible?

To apply for your BOI promotion certification, you need to ensure that your company meets the following criteria:

 

  1. Your company possesses a capital investment of a minimum of 1,000,000 Thai Baht
  2. Your company has a minimum of 3 registered shareholders
  3. Your company must be registered in Thailand
  4. Your company must be in one of the eligible industries (listed below)

 

Eligible BOI company industries

  1. Agriculture & Agricultural products
  2. Mining, Ceramics & Basic metals
  3. Light industry
  4. Metal products, Machinery & Transport equipment
  5. Electronic industry & Electrical appliances
  6. Chemicals, Paper & Plastics
  7. Services & Public utilities
  8. Technology & Innovation development

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