Company Registration under Thailand Board of Investment (BOI) with PS Law & Business
For foreign investors looking to establish or expand their business presence in Thailand, registering a company under the Thailand Board of Investment (BOI) offers a strategic pathway. The BOI is a Thai government agency that aims to attract and promote valuable investment, both foreign and domestic, into targeted sectors by offering a range of attractive incentives. PS Law & Business, based in Bangkok, specializes in guiding international clients through the complexities of BOI company registration, ensuring a smooth and compliant setup process.
What is the Thailand Board of Investment (BOI)?
The Thailand Board of Investment (BOI) actively promotes investment in specific activities and industries that are considered beneficial to the country's economic and technological development. By obtaining BOI promotion, businesses can access a suite of tax and non-tax incentives, making Thailand an even more attractive destination for foreign entrepreneurs and corporations.
Key Benefits of BOI Company Registration for Foreigners:
- 100% Foreign Ownership: For many promoted activities, the BOI allows for 100% foreign ownership of the company, even in business sectors that are typically restricted under the Foreign Business Act.
- Tax Incentives: These can include exemption or reduction of corporate income tax for a significant period (often up to 8 years, and sometimes longer depending on the activity and conditions), exemption or reduction of import duties on machinery and raw materials, and other tax-related benefits.
- Permission to Own Land: BOI-promoted companies may be granted permission to own land necessary for carrying out their promoted activities.
- Facilitated Visas and Work Permits: The BOI assists in streamlining the process for obtaining visas and work permits for foreign skilled workers, technicians, and experts required for the promoted project. This often includes access to the One Stop Service Center for Visas and Work Permits (OSSC).
- Permission to Remit Money Abroad: Foreign currency can be remitted abroad for purposes such as repatriation of profits, dividends, and loan repayments.
- Other Non-Tax Incentives: These may include protection against nationalization and increased competition from new state enterprises.
Eligibility Criteria for BOI Promotion:
To qualify for BOI promotion, a project generally needs to meet certain criteria, which can vary depending on the specific activity and the BOI's current policies. Common considerations include:
- Promoted Activities: The business activity must be listed among those eligible for promotion by the BOI. These activities span various sectors, including agriculture and agro-industry, manufacturing, electronics, digital technology, research and development, creative industries, services, and infrastructure development.
- Minimum Investment Capital: There is typically a minimum investment capital requirement (excluding the cost of land and working capital), which is generally at least 1 million Baht for most projects, but can be higher for certain activities.
- Value-Added: Projects often need to demonstrate a certain percentage of value-added to the Thai economy.
- Modern Technology and Machinery: The use of modern production processes and new machinery is usually required.
- Environmental Protection: Projects must comply with environmental protection standards and may require an Environmental Impact Assessment (EIA) for certain types of activities.
- Debt-to-Equity Ratio: A suitable debt-to-equity ratio, typically not exceeding 3:1 for new projects, is often required.
The BOI Application and Company Registration Process:
The process of obtaining BOI promotion and registering your company involves several key steps:
- Eligibility Assessment & Project Planning: Determining if your business activity is eligible and preparing a detailed business plan that meets BOI requirements.
- Application Submission: Submitting an application form along with supporting documents to the BOI. This is often done online through the BOI's e-Investment system.
- Project Appraisal: BOI officials will review the application, and there may be interviews or requests for additional information.
- Approval and Notification: If the project is approved, the BOI will issue an investment promotion certificate (BOI certificate) outlining the conditions and privileges granted.
- Company Registration: If the company is not yet established, it must be registered with the Department of Business Development (DBD), Ministry of Commerce, within a specified timeframe.
- Acceptance of Promotion Certificate: The applicant must formally accept the promotion certificate.
- Reporting and Compliance: Once operational, the BOI-promoted company must comply with the conditions stated in the certificate and submit regular progress reports.
The timeline for approval can vary depending on the project's size and complexity, typically ranging from 40 to 90 working days after submission of a complete application.
How PS Law & Business Can Assist You:
Navigating the BOI application and company registration process can be complex and time-consuming. PS Law & Business provides comprehensive legal support to foreign investors, including:
- Consultation and Eligibility Assessment: Advising on the feasibility of your project for BOI promotion and identifying the most suitable promoted activities.
- Application Preparation and Submission: Assisting in preparing all necessary documentation and submitting the application to the BOI.
- Liaison with BOI Officials: Acting as your representative in communications and meetings with BOI officers.
- Company Registration Services: Handling the entire company incorporation process with the Department of Business Development.
- Post-Approval Compliance: Advising on ongoing compliance requirements, including reporting, and applications for machinery and raw material import duty exemptions.
- Visa and Work Permit Assistance: Facilitating applications for visas and work permits for foreign employees through the BOI's channels.
At PS Law & Business, our experienced lawyers understand the nuances of Thai investment law and the BOI's requirements. We are committed to providing tailored solutions to help your business thrive in Thailand.
Frequently Asked Questions (FAQ)
Q1: What are the main advantages of getting BOI promotion in Thailand?
A1: Key advantages include potential for 100% foreign ownership, significant corporate income tax exemptions, exemptions on import duties for machinery and raw materials, permission to own land, and streamlined visa and work permit processes for foreign experts.
Q2: Does my business need to be in a specific industry to qualify for BOI?
A2: Yes, the BOI promotes specific business activities that are deemed beneficial to Thailand's economy. These are updated periodically and cover a wide range of sectors including technology, manufacturing, services, and agriculture. Our team can help assess if your business activity is eligible.
Q3: What is the minimum investment required for BOI promotion?
A3: Generally, the minimum investment capital (excluding cost of land and working capital) is 1 million Thai Baht. However, this can vary depending on the specific activity being promoted.
Q4: How long does the BOI application process usually take?
A4: The processing time can vary depending on the investment amount, type of activity, and completeness of the application. It generally takes between 40 to 90 working days from the date of submission of all required documents.
Q5: Can PS Law & Business help with registering the company after BOI approval?
A5: Absolutely. PS Law & Business provides comprehensive services that include the registration of your Thai limited company with the Department of Business Development (DBD) after receiving BOI approval.
Q6: Do I need to be in Thailand to apply for BOI promotion?
A6: While physical presence may be required for certain steps like interviews, much of the initial application process can be handled by our legal team on your behalf. We can guide you on the specific requirements.
