BOI Certification Thailand

THAILAND BOARD OF INVESTMENT (BOI)

The Thailand Board of Investment (BOI) or The Office of the Board of Investment was created in 1997 and is an agency of the Government of Thailand. Its mission is to promote foreign investment in Thailand by providing information, services, and incentives to interested foreign investors. The office operates under the aegis of the Prime Minister’s Office. The BOI operates 14 offices in major world cities as well as regional offices throughout Thailand.

BOI OVERVIEW & BENEFITS

  • Foreign Ownership – Up to 100%
  • Capital Requirements – 1 million THB paid-up capital (depending on the project, amounts can be higher)
  • Tax Rate – Regular progressive corporate income tax rates apples (unless the company receives tax incentives for corporate income tax exemption)
  • Foreign Business License – Eligible for the Foreign Business License upon issuance of the BOI certificate
  • Business Restrictions – Restricted to the business for which investment promotion is granted
  • Registration Duration – 3–4 months before a BOI certificate is issued

 

ELIGIBILITY FOR BOI CERTIFICATION

To be eligible for a BOI Thailand promotion, your business has to fall within either of these categories:

  1. Promote investment that helps enhance national competitiveness by encouraging R&D, innovation, value creation in the agricultural, industrial, and services sectors, SMEs, fair competition, and inclusive growth
  2. Promote activities that are environment-friendly, save energy or use alternative energy to drive balanced and sustainable growth
  3. Promote clusters to create investment concentration in accordance with regional potential and strengthen value chains
  4. Promote investment in border provinces in Southern Thailand to help develop the local economy, which will support efforts to enhance security in the area
  5. Promote special economic development zones, especially in border areas, both inside and outside industrial estates, to create economic connectivity with neighboring countries and to prepare for entry into the ASEAN Economic Community (AEC)
  6. Promote Thai overseas investment to enhance the competitiveness of Thai businesses and Thailand’s role in the global economy
  • Section 1: Agriculture and Agricultural Products
  • Section 2: Mining, Ceramics and Basic Metals
  • Section 3: Light Industry
  • Section 4: Metal Products, Machinery, and Transport Equipment
  • Section 5: Electronic Industry and Electric Appliances
  • Section 6: Chemicals, Paper, and Plastics
  • Section 7: Services and Public Utilities
  • Section 8: Technology and Innovation Development

 

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BENEFITS OF BOI PROMOTION IN THAILAND AND WHY?

Contrary to the general regulations and taxation schemes which apply to limited companies in Thailand, companies promoted by the Thai Board of Investment are eligible to several tax and non-tax incentives, such as complete or majority foreign ownership and, at the same time, permission for the foreign company to own land.

Tax privileges granted under the BOI promotion in Thailand include but are not limited to:

 

Non-tax privileges granted under the BOI promotion in Thailand include but are not limited to:

 

·         Corporate income tax exemption for a certain number of years

 

·         100% foreign ownership

 

·         Exemption or reduction of import duties on machinery, raw materials and/or essential materials

 

·         Permission to bring in foreign skilled workers and experts where their visas and work permits can be processed within a day at the BOI One Stop Service Centre for Visas and Work Permits

 

·         Exemption or reduction of taxes on dividends payable to shareholders

 

·         Permission to own land

 

·         Deductions from the costs of transportation, electricity and water supply, and on the cost of installation or construction of facilities

 

·         Permission to remit money abroad in foreign currency

 

  ·         Protection against nationalization of the business

 

 

BOI PROMOTION APPLICATION PROCESS

7 step process

Each step will take place in a different department (The Board of Investment, Department of Business Development and One Start One Stop Investment Centre for Visas and Work Permits).

STEP 1 – Application requirements

STEPS TIME FRAME
Filling-up the application based on the information provided. It can be issued either in the client’s name or the name of the client’s company and consists of two parts:

  • Business plan

The business plan aspect concerns business projection regarding your future expenses, clients, sales, marketing, employees’ requirements and hiring, etc.

 

  • Project plan

Highlighting the work process, what value you are creating, details of the product/services to be developed, hardware, software, machinery to be used in the production, how the product is going to be used, etc.

 

 

 

 

 

 

2-4 weeks
+ 2 weeks for the project presentation date

 

STEP 2 – SUBMITTING APPLICATION & SCHEDULING A BOI PRESENTATION

STEPS TIME FRAME
We will submit your completed application online and schedule a date for your project presentation in front of the BOI committee. 1 day

+ 1-2 weeks for the project presentation date

 

STEP 3 – MEETING AND PRESENTATION TO THE BOI

STEPS TIME FRAME
The meeting will enable the client to sell their idea in person. After being interviewed by the officials, the client will receive the Board’s resolution in approximately 40 days. 1 day Meeting

40 days for approval

 

STEP 4 – RECEIVING THE APPROVAL AND COMPAGNY REGISTRATION

STEPS TIME FRAME
After receiving the approval from the BOI, businesses have generally six (6) months to register with the DBD. Please note that only companies registered in Thailand can be BOI promoted. 2-weeks

 

STEP 5 – ISSUING THE BOI CERTIFICATION

STEPS TIME FRAME
The BOI certificate issuance is conditioned by the company completing its registration in Thailand and showing a proof of funds (this has to be at least 25% of the minimum capital requirement of Min THB 1 mil and above). 2-weeks

 

STEP 6 – VISA AND WORK PERMIT

STEPS TIME FRAME
Issuing the visa and work permit for the foreign employees (all) 1-2 days after the online formalities are completed

 

STEP 7 – POST CERTIFICATE COMPLIANCE

STEPS TIME FRAME
Notifying the officials about the company progress on a regular basis. Quaterly

 

COMPARATIVE BETWEEN A BOI COMPANY VS THAI LIMITED COMPANY

The differences in several key areas are highlighted as indicated below:

  BOI CERTIFIED COMPANY LIMITED
Thai to foreign employee ratio Can be negotiated 4:1
Corporate income tax rate +/- 0% or low 20%
Foreign ownership 100% 49%
Import of machinery No Tax Vat Tax
Ongoing requirements BOI update form submissions On-site inspection from immigration
Registration duration 9-12 weeks 1-2 weeks

 

CAPITAL REQUIREMENTS & COSTS

Do you need to evidence the injection of funds for the registered capital?

 

How much does it cost to register a BOI company in Thailand?

 

The injection of funds (at least 25%) has to be done before the BOI certificate is issued. The complete investment amount should be done within thirty six months as from the date of issuance of the BOI promotional certificate. In case of foreign ownership, you will need a proof of the investment coming from abroad. In general, the minimum capital requirement is 1M THB, but this amount may vary depending on each type of business. Companies interested in gaining the BOI-promoted status have to take into consideration legal fees and costs associated with the construction of their new premises, office space, hiring staff, buying machinery etc. Our BOI registration service is priced competitively and provides businesses with excellent value for money.

 

Hua Hin Law Firm