COMPANY INCORPORATION
COMPANY INCORPORATION
COMPANY INCORPORATION
THAILAND BOI COMPANY
The Thailand Board of Investment, or BOI, is a government body that aims to bring foreign investment in Thailand. A Thai company certified by the BOI can enjoy attractive packages of tax incentives, land ownership by foreign entities, easing foreign equity restrictions on manufacturing activities and services, and multiple work permits without the requirement of showing four Thai employees per permit. We can guide you through the entire process, pre-screen your business plan to help you assess your BOI promotion success.
OVERVIEW
Up to 100% Foreign Ownership
Restricted to the BOI promoted business activities
Registration takes 3-6 months before BOI certificate is issued
1M THB paid up capital (or higher depending on the the nature of the project)
Regular corporate income tax rates apply unless company receives tax incentives
Eligible for applying Foreign Business License upon issuance of BOI
BOI COMPANY BENEFITS
A BOI company can be awarded tax and non-tax incentives, depending on the category of activities it falls into. The tax incentives are the main reason investors apply for BOI. There are 34 different classifications of goods and 8 different classifications of services.
Tax Incentives
Tax incentives granted under the BOI include but are not limited to:
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Exemption or reduction of import duties
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Exemption of a juristic person's income tax and dividends
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Deductions from the costs of transportation, electricity and water supply, and cost of installation or construction of facilities
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Three-year, Five-year, or Eight-year corporate income tax exemption depending on qualified business activities
Non-Tax Incentives
Non-tax incentives granted under the BOI include but are not limited to:
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100% Foreign ownership
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Permits to bring in foreign skilled workers and experts
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Permit to remit money abroad in foreign currency
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Permit to own land
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Protection against nationalization of the business
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The BOI will also announce a wide range of additional and time-sensitive incentives for companies already operating under a BOI license
BOI PROMOTED ACTIVITIES
In order to be eligible for incentives offered by the Thai Board of Investment, your business activity will have to fall under one of the following categories:
AGRICULTURE AND AGRICULTURAL PRODUCTS
MINING, CERAMICS AND BASIC METALS
LIGHT INDUSTRY
METAL PRODUCTS, MACHINERY AND TRANSPORT EQUIPMENT
ELECTRONIC INDUSTRY AND ELECTRIC APPLIANCES
CHEMICALS, PAPER AND PLASTICS
SERVICES AND PUBLIC UTILITIES
TECHNOLOGY AND INNOVATION DEVELOPMENT
HOW TO APPLY?
Step 1: Feasibility Study and Application Preparation
We preform a pre-screening of your proposed BOI project with the relevant government officers. This allows us to access the feasibility of the success of a BOI application. We will prepare and fill in all the relevant application forms for you based on your provided information. The application can be submitted under your name or the name of the company and consists of two parts:
1. Business plan - includes projected cashflow, clients, sales, marketing, employee hiring, product details, manufacturing forecasts and etc.
2. Project Plan - includes information about your work processes, details of product/services to be researched and developed, value added, training programs, machinery used in production, hardware, software and etc.
Step 2: Submit application and schedule for BOI presentation
We will submit your completed application online or by hand and schedule a date for your project presentation in front of the BOI committee. Depending on the company, the Thai BOI certification process can be time-consuming if done improperly.
Step 3: Interview and present your business plan at BOI
You will have the opportunity to make a presentation of your business plan to the committee and clarify any questions the committee may have. An interview will be conducted and you will receive the Board's resolution in approximately 40 working days.
Investment values <200M THB: Consideration for BOI resolution is within 40 working days
Investment values >200M THB: Consideration by subcommittee for BOI resolution is within 60 working days
Investment values >2B THB: Consideration by subcommittee for BOI resolution is within 90 working days
Step 4: Receive BOI approval and terms and company registration
The BOI will inform you in writing within seven business days of the resolution detailing the conditions, BOI privileges and benefits which have been granted. After receiving positive resolution, a second application form for the BOI promotion certificate will be included. Applicants must reply by completing the details of the promotion acceptance and return the completed second application to the BOI within 30 days. After which, businesses generally have six months to register with the Department of Business Development.
Step 5: Issuance of BOI promotion certificate
Issuance of the BOI promotion certificate is conditioned by the company completing its incorporation with the Department of Business Development and showing proof of funds (a minimum of 25% of the 1M+ THB registered capital has to be injected).
Step 6: BOI work permits and visa
As pre-requisite to hiring foreign employees, a newly established BOI company must complete its registration with the e-expert system. Once registered, we can help secure visas and work permits for the foreign director and employees.
Step 7: BOI reporting and compliance
Your newly formed BOI company will need to notify the officials about your progress on a regular basis and must meet the following conditions and inform the BOI at each stage, where applicable.
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Within 30 months, the machinery and equipment must be imported to benefit from the reduction of taxes and duties
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Within 36 months, construction must be completed, machinery and equipment installed, and the factory ready to commence operations
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If operation has to be halted for a duration of longer than two months, permission needs to be granted by the BOI