Anyone considering to start a business in Thailand has undoubtedly heard a lot of things that aren’t true. In fact, there is a lot of disinformation about the realities of conducting business in Thailand. Why? Because circumstances have changed. Thailand’s Board of Investment (BOI) means that things have never been better for international business owners to form company in Thailand. The Thailand Board of Investment holds the authority to facilitate foreign investment to Thailand’s target activities. Many of the barriers to doing business in Thailand no longer exists with the permission of the BOI. However, this is paving the way for secure foreign investments and the formation of businesses in Thailand with government support.
What is a BOI Company?
Thailand’s Board of Investment is a government agency with the authority to promote foreign investment in the kingdom. Therefore, BOI certification can provide a number of advantages to a Thai company, like –
- Significant tax benefits
- Multiple work permits without the need to show four Thai employees per permit
- Four-hour processing times for work permits at the One Stop Service Center (OSOS), and,
- The ability to own land.
Moreover, this is possible even if the company holds non-Thai ownership, are just a few of the benefits of forming a BOI company in Thailand. For many, a successful business venture in Thailand is closer than ever thanks to the BOI.
Don’t let rumors get in the way of your success. Contact our knowledgeable staff at Konrad Legal today to begin reaping the benefits of BOI certification. Note that, BOI Thailand is operating since 1997 with the goal of attracting investment from both foreign and domestic entrepreneurs in the industries promoted by the BOI. The Board implements incentives to encourage additional investment, decentralize Thailand’s industrial base, and foster local talent development in promising areas. Businesses who meet the criteria can take advantage of either tax or non-tax advantages, or both.
Benefits for BOI Company in Thailand
BOI Company in Thailand is eligible for various benefits and privileges. This is applicable for foreign investors on a greater scale. Following are the primary benefits in the form of Tax and Non-tax incentives that you may receive as a foreign investor in Thailand –
Tax Incentives:
- Exemption or reduction of import duties
- Exemption of a juristic person’s income tax and dividends
- Double deductions from the costs of transportation, electricity and water supply
- Eight-year corporate income tax exemption for:
- Knowledge-based activities focussing on R&D and design to enhance Thailand’s competitiveness, or
- Activities in infrastructure for Thailand’s development, or
- Activities using advanced technology to create value-added
- Five-year corporate income tax exemption for:
- High-technology activities which are important to Thailand’s development, with few investments already existing here.
- Three-year corporate income tax exemption for:
- Activities with lower technology than above, but add value to domestic resources and supply-chain.
Non-Tax Incentives:
- Permits to bring in foreign skilled workers and experts
- Permit to own land Permit to remit money abroad in foreign currency
- Protection against nationalization of the business
- The BOI will also announce a wide range of additional and often time-sensitive incentives for companies already operating under a BOI license.
Process of Registration of BOI Company in Thailand
Feasibility Study
We conduct a pre-screening of your proposed BOI project with the relevant government personnel before beginning the complete application procedure. This enables us to assess the viability and possibility of a BOI application’s success. It also allows the detection any adjustments to the overall BOI business plan and strategy that may be necessary prior to submission.
BOI Application and Interview Process
Based on your business strategy and input, our expert BOI lawyers will produce the necessary application forms and documentation. We submit all BOI application forms and maintain direct contact with the officers to track your progress through the system. Care must be made to verify that all certification standards are met. Expert help is necessary to avoid disappointment and waste of resources. Our private legal counsel will guarantee the proper incorporation of your company under Thai law, providing investors with piece of mind and ensuring that your firm starts off to the best possible start. Konrad Legal exclusively assists clients who can be fully accommodated in order to provide great service to all of our clients. The Thai BOI certification procedure can take a long time, depending on the business, and if done incorrectly, could jeopardize the company’s capital.
| Investment Value | Application Processing Time |
| Less than 200 Million Baht | After receipt of your complete application, you will be considered for a BOI promotion within 40 working days. |
| More than 200 Million Baht | Within 60 working days after receiving the complete application, the subcommittee will consider it for BOI approval. |
| More than 2 Billion Baht | Within 90 working days of submitting a complete application, a subcommittee will review it and then the BOI board will approve it. |
BOI Approval and Acceptance of Terms
Within seven business days of receiving approval, the BOI offices will notify the applicant in writing, outlining the criteria, BOI privileges, and perks that are applicable. Applicant will receive a BOI promotion certificate application form. The BOI applicant must respond within 30 days of receiving official approval by filling out the details of promotion acceptance and forwarding it to the OBOI. If the applicant does not respond within 30 days, he/she/they must send a letter of clarification to the OBOI, which may consider extending the deadline three times in 30 day intervals.
BOI Company Registration in Thailand
The applicant must form a Thai firm within six months of acceptance approval to acquire the BOI investment promotion certificate. Applicant(s) must send the following documents to the OBOI offices on time:
- Application form for BOI promotion certificate
- Memorandum of association
- Certificate of company registration
- Certificate stating the registered capital, authorized directors indicating signing authority and the registered address
- Shareholder list
- Evidence of the transfer of funds from overseas, or an investment certificate issued by the Bank of Thailand
- A Joint Venture contract, licensing or franchise agreement, technical assistance contract and/or technology transfer contract
- Form outlining human resource requirements
If the applicant is unable to submit the documents before the period, he/she/they must send an explanation letter to the OBOI that can extend the deadline by four months at a time, up to three times. Henceforth, after receiving all required documentation, the OBOI will issue an investment promotion certificate, and the promoted company must adhere to the terms of the certificate.
BOI Work Permits and Visa
The newly founded BOI business must complete its registration into the e-expert system before recruiting foreign workers. However, this will enable the company to make future requests for foreign worker consideration and approval.
After a post has been submitted, opened, and accepted through the e-expert system, the applicant is free to apply for both a visa and a work permit at the BOI one-stop service center (OSOS).
BOI Reporting and Compliance
Following receipt of the investment promotion certificate, the promoted firm must meet the following requirements and, where relevant, notify the OBOI at each level.
- Within 30 months, the machinery and equipment must be imported to benefit from the reduction of taxes and duties
- Within 36 months, construction must be completed, the machinery and equipment installed, and the factory ready to commence operations
- The company must ask for permission from the OBOI if the operation has to be halted for a duration longer than two months
- The OBOI must give written permission before a promoted company may mortgage, sell, lease, or transfer machinery which was imported either exempt from, or at a lower rate of tax. Additionally, permission must also be obtained to use machinery for non-approved purposes.
The OBOI will issue an official warning note if a BOI inspection detects that the company is not satisfying the conditions. If there are no valid reasons for the failure to meet the conditions, the OBOI will recommend to the Board that the promotion be withdrawn, and will notify the DBD, Revenue Department, and other agencies.
BOI Accounting
Thailand’s BOI enterprises must adhere to strict accounting and reporting guidelines. Moreover, a BOI company must be careful to fulfill the special standards set down for each type of promotion category. Additionally, the same is mandatory for the basic reporting of VAT, WHT, and SSF, and the filing of half-year and yearly auditing. Both tax department employees and BOI inspectors keep a close eye on things. Therefore, additional considerations for certain BOI accounting standards are required.
We Can Help Throughout..
Starting from BOI Registration till the Accounting compliance, Konrad Legal has been providing the solution to foreign investors since 2013. In this era of providing professional and expert legal and accounting services, we have bagged scores of returning clients seeking our services time and again. Therefore, get in touch with us via a free online consultation. Alternatively, you may also email us your requirements in detail at [email protected].
