Registering a Company Under the Thailand Board of Investment

Registering a company under the Thailand Board of Investment is an excellent way to benefit from a range of tax and non-tax incentives. It also provides access to a number of government support services.

BOI-promoted companies may also receive a faster process for obtaining work permits for foreign employees. However, a company must meet a series of requirements to qualify for BOI promotion.

Tax incentives

The Thailand Board of Investment offers various tax incentives to companies that operate in the country. These include corporate income tax exemptions and import duty reductions for raw materials. However, BOI-promoted companies must adhere to specific limitations and reporting requirements in order to maintain their privileges. They must also submit a business feasibility study and demonstrate that their investments meet regulatory criteria.

In addition to the tax exemptions, BOI-promoted companies can benefit from the country’s Free Trade Agreements and reduced trade barriers with international markets. Non-tax privileges allow BOI-promoted companies to hire foreign skilled workers without having to hire four Thai employees per foreign worker. It also provides a simplified process for obtaining non-immigrant visas and work permits through the One-stop Service Center.

The BOI also offers premium incentives for high technology and innovation activities. These include exemption from corporate income taxes for up to eight years and a reduction in machinery and raw material import duties.

Non-tax privileges

The BOI offers non-tax privileges to encourage businesses to invest in Thailand. These include exemption from corporate income tax (CIT) for a certain period and tariff reductions on imported machinery and raw materials. Other benefits may also be available for companies that conduct research and development, depending on the types of activities they engage in.

Foreign investors can establish a business in Thailand as a limited partnership, a branch office or a representative office. A limited partnership is a company where the liability of partners is determined by the amount of capital they contribute. A branch office is an extension of a foreign parent company’s activities in Thailand and cannot engage in commercial activity. A representative office can perform market research and report back to the head office.

In order to obtain a BOI license, foreign entrepreneurs should submit the necessary forms and attend an interview with BOI officials. Depending on the type of business, they may also be required to present a detailed business plan. Moreover, a company applying for a BOI licence must prove that it has sufficient funds to meet the requirements.

Licensing requirements

Before a company can obtain a BOI licence, it must complete all forms and submit them to the government. After this, officials will schedule an interview. Typically, these interviews are held within 10 working days. Once the company is approved, it will receive a Foreign Business Certificate. This removes the restrictions in the Foreign Business Act, which prohibits foreigners and foreign-owned companies from undertaking certain categories of business.

This gives more weight to high-tech activities and innovations, including digital technology; “smart agriculture” and biotechnology; aviation and logistics; food processing; and medical hub and total healthcare services. It also eliminates the quota for hiring foreign employees.

However, the company must have modern production processes to qualify for the BOI promotion. Moreover, the company must be a limited company and must register in Thailand within six months of its approval for the BOI promotion. If not, it may face fines and other penalties. If the company is unable to meet this deadline, it may request an extension for 30 days at most.

Business set up

Once a company is granted BOI promotion, it can enjoy a wide range of tax and non-tax privileges. These include corporate income tax exemption, work permit and visa help, and a wide variety of import duty reductions or exemptions. However, it is important to note that this type of promotion only applies to a specific business activity.

The criteria for eligibility is based on economic significance and export-orientation. It also includes commitment to job creation and a history of legal adherence. Moreover, it should meet the minimum capital investment requirements.

The business set up process can take a few days to several weeks depending on the size of the company. It is advisable to use the services of experienced consultants to ensure that all necessary documents are in order. It is crucial to have robust accounting practices and compliance reporting that go beyond ticking the regulatory boxes. These reports can provide critical insights that can drive business decision-making and enhance your competitive edge in the Thai market.

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