Foreign investors applying for BOI Thailand Company Registration may run into various practical obstacles, resulting in the rejection of the application. We’ve put up some ideas for the BOI application in this guide to guarantee you’ve met all of the requirements and qualifications. If you abide by all the instructions, you will surely succeed in the process of getting BOI Thailand Promotion for your business.
Checklist of documents for BOI application
When filing for a BOI Thailand Company Registration, make sure you have all of the necessary paperwork, which include:
- Two sets of complete application forms:
- Application form for Investment Promotion for all Eligible Activities (F PA PP 01)
- Investment Promotion Application form for Services Activities (F PA PP 03)
- Application form for Investment Promotion of Software and E-Commerce (F PA PP 04)
- Application form for Small and Medium Enterprises (F PA PP 29)
- For individuals:
- National identification card or passport of applicant
- For juristic entities:
- Copy of most recent financial statements (if any)
- Current list of shareholders or shareholder distribution report
- Copy of the current certificate of business registration issued within the last six months
- Attorney-in-fact (authorized person)
- Power of attorney affixed with stamp duties
- Certified true copy of national identification card or passport of the applicant
- National identification card or passport of authorized person
- Projects with an investment value of over THB 750 million (excluding cost of land and working capital)
- Project feasibility study report
- Activities concerning environmental impacts (only if involving the dyeing process or for the manufacturing for batteries or flashlight batteries)
- Preliminary Environmental Impact Assessment Form (F PA PP 15)
- Application for additional rights and privileges
- Enhancing competitiveness (F PA PP 37)
- Energy conservation-use of renewable energy-reduction of environmental impacts (F PA PP 28)
- Adjustment and change of machinery to increase manufacturing efficiency (F PA PP 30)
- Applications under category 7.12 Biotechnology
- Supplementary Form for Applications for Investment Promotion under Category 7.12 Biotechnology (F PA PP 19)
Criteria for BOI approval
The investment must meet the following conditions in order to be approved:
- To develop competitiveness in the agriculture, industrial and service sectors, projects submitted for BOI promotion must have the following qualifications:
- The value-added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, which must have a value-added of at least 10% of revenues
- Modern production processes must be used
- New machinery must be used
- Projects that have an investment capital of THB 10 million or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 certification or a similar international standard certification within two years
- Environmental protection
- Minimum capital investment and project feasibility
- The minimum capital investment of each project is THB 1 million
- Projects with an investment over THB 750 million (excluding cost of land and working capital) must submit the project’s feasibility study
When to apply for BOI Thailand Company Registration & Promotion?
Before and after Company Registration, investors can apply for BOI promotion. However, there are several benefits to forming a Thai corporation first.
If you file for BOI promotion as a foreign firm, you will be required to submit a variety of corporate documents and supporting material, all of which must be translated and/or notarized. Creating a Thai business initially will make administrative procedures easier and faster.
Another reason to start the business first is to make the most efficient use of your time. Instead of waiting for the BOI to review your application, you can utilize those months to have all of the pieces of your business in place, such as leasing a factory or importing and installing necessary machinery.
By doing so, you will have completed all of the necessary steps to begin operations as soon as the BOI accepts the promotion.
Tips when preparing for BOI Thailand Company Registration
Do not try to disguise prospective losses when preparing your BOI application. Do not be embarrassed to declare if your budget predicts losses throughout the early phases of the business application.
You should also be open and honest about the amount of money you intend to invest. The BOI wants to make sure that your investment is acceptable for the type of activity and scale of your project.
You should also avoid overestimating your expected profits. Although the BOI offices may not be specialists in your industry, they have assessed enough business plans to know what profit margins and margins to expect for a company of your size and type.
Another thing to think about when applying for the BOI promotion is to em-panel the services of a Thai lawyer, as you may make mistakes throughout the application and monitoring stages.
The Bottomline
When you decide to apply for a BOI promotion, you must compile the paperwork required by the BOI and meet specific requirements in order for your project to be considered. Konrad Legal offers a team of skilled lawyers who can assist you with your BOI application if you need it. Email us your business idea and plan at [email protected] to get complete help in your BOI Thailand Company Registration and Promotion process to success.
