What is a BOI company in Thailand?
The Thailand Board of Investment (BOI) Office is a government agency under the Prime Minister’s office focused on promoting inbound and outbound investment to drive the growth of the Thai economy. The BOI envisions restructuring the Thai economy into a “new economy” through three focal points: innovation, competition, and inclusion. Setting up a BOI company in Thailand allows the country to leverage foreign investments to support national development, while allowing foreign businesses to generate revenue in the country.
Benefits of registering a Thailand Board of Investment company
Setting up a BOI company in Thailand offers benefits exclusive to its members. These benefits include both tax and non-tax incentives.
Tax incentives
When you register a BOI company in Thailand, you are eligible for the following tax incentives:
- Waiver or reduction of import tariffs on machinery and essential/raw materials
- Waiver of tariffs on research and development materials
- Corporate income tax exemptions on net profits and dividends from promoted activities
- 50% reduction in corporate income tax
- Double deductions on transportation, electricity, and water supply expenses
- An additional 25% deduction on installation/construction costs
- Waiver of tariffs on materials for export production
Non-tax incentives
Non-tax incentives are available for members as part of the BOI Thailand benefits, including:
- Permit for foreign nationals to enter Thailand to explore investment opportunities
- Permit to bring skilled workers and experts inside the country to engage in investment-promoted activities
- Capacity to buy and own land
- Permit to withdraw or remit money abroad in foreign currency
Thailand BOI company requirements
Below are the qualifications and requirements for setting up a BOI company in Thailand:
- A minimum capital investment of ฿ 1 million ($29,740) (excluding land and working capital)
- Application form for the BOI promotion certificate
- Memorandum of Association
- Certificate of Company Registration
- Certificate confirming registered capital, authorized directors with signing authority, and the registered address
- List of shareholders
- Evidence of fund transfer from overseas or an investment certificate issued by the Bank of Thailand
- Joint venture contract, licensing or franchise agreement, technical assistance contract, and/or technology transfer contract
- Form detailing human resource requirements
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BOI company application process
The BOI application is a long process, and various steps are taken to ensure its legality. Below is a step-by-step guide to setting up a BOI company in Thailand.
1. Checking the eligibility
Eligibility is a crucial factor in setting up a BOI company in Thailand since the BOI recognizes specific business activities and categories. Ensuring your company qualifies with the BOI’s requirements is the first step to avoiding legal impediments as you proceed through the BOI application process.
2. BOI application and interview process
Applicants with qualified activities are required to submit their application and relevant documents for consideration through the e-Investment Promotion system. This process is not applicable for investment promotion applicants that apply for performance optimization, business relocation or transference, or local and societal development, and will thus have separate processes.
Following the application, the company’s representative or investor will be contacted to schedule the presentation within 10 working days from the submission date.
3. BOI approval and acceptance of terms
After assessment and consideration, the Board of Investment (BOI) will issue the Certificate of Promotion to the applicant no later than 7 days after the date of the resolution certification. Representatives or investors must accept the resolution (acknowledge the results) within one month of the notification date of the resolution. They must then apply for a Promotion Certificate within six months of the date the Promotion Acceptance Form was submitted to the BOI office.
The BOI License Thailand is issued as an official investment promotion certificate from the Board of Investment within 10 working days. Without the promotion certificate, the company registration cannot proceed for setting up a BOI company in Thailand.
4. Registration of BOI company Thailand
The next step is to register the business as a BOI-promoted company in Thailand. Like any other company, BOI company registration in Thailand is done with the Department of Business Development (DBD) under the Thai Civil and Commercial Code.
5. BOI work permits and visa
Setting up a BOI company in Thailand requires you to apply for work permits and a visa to hire foreign staff. The newly established BOI company must register in the e-expert system, enabling requests for foreign worker approval. One type of visa available for foreign employees is the BOI LTR visa, a special 10-year visa designed for highly skilled professionals, wealthy individuals, retirees, and remote workers.
6. BOI reporting, tax, and compliance
Upon issuance of the investment promotion certificate, the promoted company must comply with the following conditions and report to the BOI office as appropriate:
- Machinery and equipment must be imported within 30 months for tax and duty reductions.
- Construction must be completed, and machinery must be installed within 36 months for the factory to commence operations.
- If operations are suspended for over 2 months, the BOI office must obtain prior approval.
Similarly, after you register a BOI company in Thailand with the Department of Business Development (DBD), a BOI-promoted company must register for a Tax Identification Number (TIN) at the Revenue Department within 60 days of starting operations.
How to apply for a BOI company in Thailand
Setting up a BOI company in Thailand for foreigners can be challenging, especially when navigating the legal framework. Seeking legal support from Thai law firms is essential to streamline the process. Own Property Abroad can help you in this pursuit, as we specialize in assisting foreign nationals in buying and selling properties abroad and establishing companies overseas. Contact us and let us help you set up a BOI company in Thailand!
List of eligible BOI company activities and categories
Applying for a BOI promotion involves strict eligibility requirements that are tailored to specific types of businesses. Here is the approved BOI company list in Thailand according to activities and categories:
- Investment Promotion Division 1: Agricultural, food, biotechnology, and medical industries.
- Investment Promotion Division 2: Machinery, automotive, electrical appliances, and electronics industries.
- Investment Promotion Division 3: Metal, material, chemical, petrochemical Industries, and public utilities.
- Investment Promotion Division 4: Digital, creative industries and high-value services.
Requirements for 100% foreign ownership
Foreign investors can own 100% of a BOI-promoted company in Thailand, even for businesses prohibited by the Foreign Business Act, including those listed in List 2 (businesses related to national safety or security, arts, and culture) and List 3 (businesses in respect of which Thai nationals are not ready to compete with foreigners). The exemption is if a company’s activities fall under List 1 of the Act, such as rice farming, plantation, crop growing, and livestock farming. The BOI requires that at least 51% of the company be owned by Thai nationals.
Buying real estate in Thailand through a BOI company
Purchasing property in Thailand through a BOI-promoted entity is permissible, as the Board of Investment (BOI) offers special incentives and permits to foreign-owned entities, including land ownership rights. Generally, foreigners cannot own land in Thailand; however, since BOI companies may be permitted to own land, this can be done as land ownership is required to carry on business.
Other company registration options
If setting up a BOI company in Thailand is not feasible, several options are available for company registration:
- Private limited company: This is the most common business entity in Thailand, which allows shareholders to enjoy limited liability. Non-Thai shareholders can hold a maximum of 49% in a Private Limited Company.
- Branch office: Thailand allows a foreign company to set up a legally recognized business presence in Thailand as a branch and still be considered one company with the parent company.
- Representative office: A foreign company is able to create a non-revenue-generating presence in Thailand to support their work with the parent company.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Frequently Asked Questions (FAQs)
What does BOI mean?
BOI is short for the Board of Investment, a Thai government agency that encourages both domestic and foreign investment through incentive programs, including tax incentives, 100% foreign-owned companies, and simplified business procedures.
Can I apply for an LTR Visa after registering a Thailand BOI company?
Yes, you can apply for an LTR Visa after registering a Thailand BOI company, provided you meet the eligibility criteria.
Can I set up a BOI company in Thailand online?
Yes, you can set up a BOI company in Thailand online by applying for investment promotion via the BOI e-Investment Promotion System and registering your company through the Department of Business Development (DBD) e-Registration system.
What is a BOI-promoted company in Thailand?
A BOI-promoted company in Thailand is a business that has received investment promotion privileges from the Board of Investment (BOI).
Can foreigners establish a Thailand BOI company?
Yes, foreigners can set up a BOI company in Thailand with 100% foreign ownership, as long as the business is in a BOI-promoted business activity and fulfills all necessary investment and compliance obligations.
How much does it cost to register a Thai Board of Investment company?
The cost to register a Thai Board of Investment (BOI) company varies, but generally, it is a minimum capital requirement of ฿ 1 million ($29,740) (more for some classifications), along with fees from the government and possibly legal/consulting fees based on the type of business and the complexity involved.
