Are You Seeking BOI Approval for Your Business in Thailand?

We understand it may not be possible for you to know all rules and regulations as it is susceptible to change. Below are a few points that will help you knowing the project approval criteria;

1. More competition in the industrial, agricultural and service sectors

• The value added of the project should not be lesser than twenty percent of revenues, other than the projects related to agriculture, electronic products and parts plus coil centers
• Production process must be modern
• New machinery must be put in use
• Projects with a minimum investment capital of 10 million baht must get ISO 9000 or ISO 14000 certification
• For concession on project and privatization of state enterprise project, the criteria shall be solely based on the decisions of the Cabinet dated May 25 1998, as well as November 30, 2004.

2. Protect environmental quality

• The Board is willing to grant special consideration to pollution treatment of a project, having potential environmental impact.
• Projects that are required to submit environmental impact assessment report must comply with related Cabinet resolutions and environmental laws.
• Projects that are situated in Rayong must abide by the Office of the BOI Announcement No. Por 1/2554 dated May 2, 2011.

3. Minimum Investment and feasibility of the project

• The minimum capital investment requirement for every project is 1 million baht. This excludes land and working capital costs.
• The debt-to-equity ratio for new projects must not be more than 3:1.
• The project feasibility study must be submitted by the projects, having an investment value of more than 750 million baht.

4. Foreign Shareholding Criteria

The BOI has the below-mentioned criteria for a foreign shareholding in the projects, applying for investment promotion;

• Thais must hold shares that total to not lesser than 51% of the registered capital (for business activities under List one)
• There are no restrictions on equity for foreign investors (business activities under List two and three)
• The Board of Investment can impose some foreign shareholding limits for a few activities that are eligible for investment promotion if deemed appropriate.

For any further information, you may contact us. Write to us at [email protected]