We did it too. Not a foundry, though. After being in Southeast Asia and Thailand for so many years, I with my colleagues decided to set up a business in Bangkok. As we navigated through the fascinating business ecosystem, we were continuously absorbed by the challenges faced until we learned about the Board of Investment (BOI).
The BOI offers tax and non-tax incentives to promote investment involved in various activities. Kudos to you! Your foundry falls under BOI activity list. As far the procedure of setting up a foundry in Thailand is concerned, the procedure will be more the same as any other business set up. However, the total investment will include the following costs;
- Legal fees related to business transfer
- Remodeling the premises
- Rent payable and security deposit
- Replacement of fixtures and equipment
- Visas and work permits
- Company incorporation cost
- Additional working capital
- Business licenses
- Recruitment
- Marketing
Coming back to BOI, the incentives are generous while reducing many of the requirements that people would generally warn you about. In fact, the ratio of Thai to foreign employees is slashed and you don’t need to hire Thais for up to 2 years. Also, you will have the leverage to work from a co-working space, get work permits and do not have to pay tax.
Here comes the biggest challenge that is to get involved with a business lawyer. You may look into the various website about how to derive Board of Investment incentives. But there is a possibility that you will be served with sparse information. So the best way to derive information is to find a lawyer or a certified legal expert who will not only advise you on company formation in Thailand, but will also help you to register one under BOI.
Having said that no matter whether you set up a BOI promoted company or not, the basics you will anyway have to follow. This includes employing at least 4 Thais in the 1st year with a minimum salary of 1.5 million THB. There are requisites too;
- The company will require 3 shareholders/promoters;
- The company must have a paid-up registered capital of at least 2,000,000 Baht. In case you are married to a Thai, the registered capital will be reduced to 1 million Baht in registered capital;
- Your company will need to have an address to be its registered Head Office; and so on
Too much of information? Don’t stress out already. Speak to a lawyer and he will guide you thoroughly.
