Should You Register Your Company under Private Ltd Company or BOI in Thailand?
By now, you might have read hundreds and thousands of articles regarding starting a company in Thailand. And they are enough to confuse you. Hold before you just plunge into getting your company registered. You can either register your company under BOI or have a private limited company. The biggest advantage of a private limited company is the limited liability. As according to the Apex, the company is solely responsible for the debts as a single entity. And if any loss is incurred by the company, the members will not be personally affected although they will be only liable for the unpaid shares. But, that’s okay, right? I mean who can then save yourself suffering from personal loss.
Having said this, a private limited company requires at least two persons to acts as the Directors. So, if you are a sole entrepreneur you have already lost your chance there.
And then there is Board of Investment in Thailand offering so many investment opportunities to the businesses. The best part is low rates on tax. In fact, Headquarters and International Trading Centers can get tax privileges for at least 15 years. This includes;
- CIT exemptions for income received from the overseas affiliated clients.
- Reduced CIT rate (10%) for qualified activities income that is received from affiliated entities present in Thailand
- Thailand Future Fund
- Enhancement fund for the targeted industries
- Tax and non-tax incentives when investing in Special Economic Zones
- CIT exemption for services that are related to international trade overseas
Looking back, BOI had given some amazing privileges to the investors during the year 2015-2016. Foreigners got the double deduction of depreciation expenses for obtaining assets like machinery, computer software, equipment, tools, buildings (excluding the ones for residential purposes) and vehicles. However, if you are looking to invest in the New Growth Engines in Thailand, you are likely to receive special tax as well non-tax incentives for investing in five potential industries, which includes;
- CIT exemption for at least ten to fifteen years
- Special grants and financial support for the target industries through fund
- PIT exemption for experts who are working in the targeted industries
Now that you already have a brief know-how of the possible advantages and disadvantages of a BOI registered company and a private limited company, you can make a wise decision
