Registering a company under the Thailand Board of Investment can provide foreign investors with a range of incentives. However, the benefits vary depending on criteria such as the type of business and the amount of invested capital.
In addition, certain perks are exclusive to BOI-promoted companies such as full or majority foreign ownership. Our team of professionals can guide you through the process of applying for a BOI promotion certificate.
Incorporation Process
The Thailand Board of Investment (BOI) is a government organization that supports foreign business investments in Thailand by offering tax and non-tax incentives. It operates directly under the Prime Minister’s Office and offers several benefits to qualified investors.
BOI Thailand gives preference to high-tech, innovative, and sustainable projects that offer value to the country. These include digital technology, “smart agriculture” and biotechnology, aviation and logistics, automation and robotics, medical and wellness tourism, and more. The agency also focuses on promoting outbound investments to international markets through the MOC’s Department of International Trade Promotion (DITP).
The U.S. Commercial Service, the American Embassy in Bangkok, can help businesses register under the BOI. This process takes about 30 days after the BOI receives documents from the business applicant. The Commercial Service can also provide a letter of support to the applicant to speed up the application process. However, this is not required for all applications. The BOI will determine whether the company can operate the restricted businesses in List 2 and 3 based on the business category.
Documents Required
To register a company under the BOI, you must submit several documents, including an application and a feasibility study. The document requirements vary depending on the category of business. You should also notify the revenue department and obtain a tax ID card within 60 days of registration. If you’re unsure about the requirements, get in touch with a legal professional.
Upon approval, a BOI-promoted company will be able to enjoy many privileges, including a corporate income tax exemption of up to eight years, tariff reductions or exemptions for imported raw materials, and an express procedure for visa and work permit facilitation. Foreign ownership is also permitted in BOI-promoted companies, as are concession on land and the option to bring in foreign experts.
Additionally, BOI-promoted companies must meet performance requirements, such as export targets and job creation targets. Failure to meet these targets can result in the withdrawal of BOI promotion. Accounting and reporting protocols are strictly monitored by BOI and revenue department officials.
Application Forms
You will need to submit a detailed business plan along with your financial projections. This will help the BOI officers understand the potential economic impact of your project.
The BOI focuses on industries that have good prospects for long term sustainable growth. It also prioritizes companies that have a good safety profile. This way, you can be assured that your company is safe from potential risks.
Once the BOI receives your application form, they will schedule a preliminary meeting with you. They will also conduct a thorough background check on the directors and shareholders.
In addition to the above, you must follow strict accounting and reporting protocols. This will be strictly monitored by the BOI and Revenue Department officials. It is essential that you have a professional law firm in Thailand to ensure your company follows all the guidelines to avoid any problems in the future. Having an expert guide you through the process will ensure that your BOI privilege application gets approved in less time.
Interviews
The Thailand Board of Investment is a leading government organization that encourages investments in targeted economic sectors. The agency offers tax and non-tax incentives to promote foreign and domestic businesses in the country. Such benefits include corporate income tax exemption for up to 13 years, full or partial exemption from import duties on equipment and raw materials, and reduced taxes on dividends paid to shareholders.
The first step in registering a company with the BOI is to interview with an officer. The interview will ask about the company’s products and services, its target clients, finances, and investments as well as projected revenues for a specific period of time.
The BOI and the Ministry of Commerce’s Department of International Trade Promotion (DITP) are responsible for promoting outbound investments in foreign markets. BOI focuses on outbound investment in ASEAN, while DITP targets smaller emerging economies. Both agencies are primarily concerned with investing in foreign markets for the purpose of acquiring technologies to support Thai companies.