Thailand BOI company.
Acclime can assist with a complete BOI company registration package including planning, BOI application, BOI work permits and visa, accounting and on-going BOI company reporting and compliance.
Register a Thailand Board
of Investment company.
Anyone thinking of doing business in Thailand will probably have heard many things that are NOT possible. In fact, misinformation on the realities of doing business in Thailand is commonplace. Why? Because things have changed. Thailand’s Board of Investment (BOI) means that for foreign business owners in Thailand, things have never been better. The Thailand Board of Investment has been mandated to facilitate the investment into promoted activities in Thailand. With BOI approval, many of the hurdles of doing business in Thailand are removed, clearing the way for safe foreign investments and establishment of government-supported business in Thailand. Contact Acclime to find out if your company could start enjoying the benefits of BOI certification.
What is a BOI company?
The Thailand Board of Investment is a government body aimed at encouraging foreign investment in Thailand. A Thai company can enjoy a range of benefits from being certified by the BOI. Major advantages of setting up a BOI company in Thailand include, but are not limited to: significant tax waivers, multiple work permits without the requirement of showing four Thai employees per permit, four hour processing times for work permits at One Stop Service Centre and even the ability to own land, even if the company is majority controlled by non-Thai nationals. Thanks to the BOI, for many, a successful business venture in Thailand is closer than ever. Don’t let hearsay hold you back. Get in touch with our expert team at Acclime and start enjoying the benefits of BOI certification today. The Thai Board of Investment was established in 1997 to attract investment from both foreign and local entrepreneurs within the industries that the BOI promotes. The Board of Investment has put in place incentives to attract more investment, decentralise Thailand’s industrial base, and nurture local skill development in attractive industries. Eligible businesses may take advantage of either tax or non-tax incentives, or both.
BOI company activities and business categories.
BOI company benefits.
- Exemption or reduction of import duties
- Exemption of a juristic person’s income tax and dividends
- Double deductions from the costs of transportation, electricity and water supply
- Eight-year corporate income tax exemption for:
- Knowledge-based activities focussing on R&D and design to enhance Thailand’s competitiveness, or
- Activities in infrastructure for Thailand’s development, or
- Activities using advanced technology to create value-added
- Five-year corporate income tax exemption for:
- High-technology activities which are important to Thailand’s development, with few investments already existing here.
- Three-year corporate income tax exemption for:
- Activities with lower technology than above, but add value to domestic resources and supply-chain.
- Permits to bring in foreign skilled workers and experts
- Permit to own land Permit to remit money abroad in foreign currency
- Protection against nationalisation of the business
- The BOI will also announce a wide range of additional and often time-sensitive incentives for companies already operating under a BOI license.
Acclime has been selected as the official legal and accounting services partner at True Digital Park. TDPK is Thailand’s first, and Southeast Asia’s largest, start-UP ecosystem to promote innovation. Acclime will be providing administrative support to all start-UP businesses in all legal and accounting matters.
Other company registration options.
Thailand offers a number of different options for registering a company or business. Please visit our company registration section for additional information.
Criteria for a 100% foreign owernship.
BOI certification has the attractive benefit of supporting foreign shareholding of the company, often allowing 100% foreign-ownership, even where the company’s business is included in List 2 and List 3 of the Foreign Business Act’s prohibited activities. Where the company’s activities are included in List 1 of the Act, the BOI will require the company have a minimum of 51% Thai-ownership. The activities controlled by the Foreign Business Act are listed here. The BOI may set foreign shareholding limits if they think it appropriate.
BOI company application process.
It is important to bear in mind that BOI certification is reserved for large investors seeking to conduct business in Thailand. The certification process is laborious, painstaking, and fraught with unforeseen complications. Care must me taken to ensure that all the requirements for certification are met. To avoid disappointment and wasted resources, expert assistance is essential. Private legal counsel will ensure your business is incorporated and certified in accordance with Thai law, offering peace of mind to the investor and ensuring your company gets the best possible start. Furthermore, you can find out more about useful BOI tips in our article here. In an effort to guarantee quality service to all of our clients, Acclime only offers assistance to clients who can be fully accommodated. Depending upon the venture, the Thai BOI certification process can be extremely time-consuming and if done improperly, could jeopardise the company’s investments. Contact Acclime to find out if your company could start enjoying the benefits of BOI certification. There are plenty of reasons to apply for a BOI license, but the procedure is time-consuming and complicated. Acclime will help our clients through the application process and give recommendations on how to approach the BOI.
BOI company process and procedures.
1. Feasability study.
Before undertaking the boi application process in its entirety, we perform a pre-screening of your proposed BOI project directly with the relevant government officers. This allows us to access the viability and likelihood of the success of a BOI application. It also allows us to identify any changes that may be required to the overall BOI business plan and strategy before submission.
2. BOI application and interview process.
Our experienced BOI lawyers will prepare all the relevant application forms and documents based on your business plan and feedback. We submit all the BOI application forms and liaison with the officers directly to monitor your progress through the system. Care must me taken to ensure that all the requirements for certification are met. To avoid disappointment and wasted resources, expert assistance is essential. Our Private legal counsel will ensure your business is incorporated and certified in accordance with Thai law, offering peace of mind to the investor and ensuring your company gets the best possible start. In an effort to guarantee quality service to all of our clients, Acclime only offers assistance to clients who can be fully accommodated. Depending upon the venture, the Thai BOI certification process can be extremely time-consuming and if done improperly, could jeopardise the company’s investments.
Investment values < 200M THBConsideration for BOI promotion is within 40 working days – after acceptance of complete application
Investment values > 200M THBConsideration by subcommittee for BOI approval is within 60 working days – after submission of complete application
Investment Values > 2B THBConsideration by subcommittee and then BOI board approval is within 90 working days – after submission of complete application
3. BOI approval and acceptance of terms.
The BOI offices will inform the applicant in writing within seven business days of the approval and detailing the conditions, boi privileges and benefits which have been granted. An application form for the BOI promotion certificate will be included. Upon receipt of official approval, the BOI applicant must reply by completing the details of promotion acceptance and returning to the OBOI within 30 days. If the applicant is unable to reply within 30 days, a letter of clarification should be sent to the OBOI, which may consider an extension of the timeline in 30 day intervals, no more than 3 times.
4. Registration of Thailand BOI company.
To receive the BOI investment promotion certificate, the applicant must establish a Thai company within six months of acceptance approval. The following documents must be submitted to the OBOI offices in due course:
- Application form for BOI promotion certificate
- Memorandum of association
- Certificate of company registration
- Certificate stating the registered capital, authorized directors indicating signing authority and the registered address
- Shareholder list
- Evidence of the transfer of funds from overseas, or an investment certificate issued by the Bank of Thailand
- A jv contract, licensing or franchise agreement, technical assistance contract and/or technology transfer contract
- Form outlining human resource requirements
If the applicant is unable to submit the documents within the required time frame, an explanatory letter must be sent to the OBOI, which will consider extending the deadline by four months at a time, up to a maximum of three times. The OBOI will issue the investment promotion certificate after receipt of all specified documents, and the promoted company must follow the conditions laid out in the Certificate.
5. BOI work permits and visa.
As pre-requisite to hiring foreign staff, the newly established BOI company must complete its registration into the e-expert system. This will allow the company to make subsequent requests for the consideration and approval of foreign workers.
Once a position has been submitted, opened and approved through the e-expert system the applicant is cleared to make their application for both visa and work permit through the BOI one stop service centre (OSOS).
6. BOI reporting & compliance.
After receipt of the investment promotion certificate, the promoted company must meet the following conditions and inform the OBOI at each stage, where applicable.
- Within 30 months, the machinery and equipment must be imported to benefit from the reduction of taxes and duties
- Within 36 months, construction must be completed, the machinery and equipment installed, and the factory ready to commence operations
- The company must ask for permission from the OBOI if the operation has to be halted for a duration longer than two months
- The OBOI must give written permission before a promoted company may mortgage, sell, lease, or transfer machinery which was imported either exempt from, or at a lower rate of tax. Permission must also be obtained to use machinery for non-approved purposes.
If a BOI inspector discovers that the company is not meeting the conditions, the OBOI will send an official warning note. If there are no valid explanations why the conditions are not being met, the OBOI will recommend to the Board that the promotion be revoked and notify the DBD and Revenue department, and other agencies accordingly.
7. BOI accounting.
BOI companies in Thailand must follow strict accounting and reporting protocols. In addition to the basic reporting of VAT, WHT and SSF, and the filing of half year and yearly auditing, a BOI company must make sure to follow the specific requirements set forth for each type of promotion category. Strict monitoring is carried out by both the revenue department officials and BOI inspectors. Subsequently, special considerations must be made for these BOI accounting requirements.