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SETTING UP A BOI COMPANY IN THAILAND

Setting up a BOI company in Thailand

A BOI company in Thailand is a Thai business entity granted promotion and privileges by the Board of Investment (BOI), a government agency promoting foreign direct investment in key industries. It aims to attract both foreign and domestic investments to key industries and activities that contribute to Thailand’s economic growth and development. BOI offers incentives like tax exemptions, tariff reductions, foreign ownership approval, and simplified work permit processes. Businesses must apply for BOI promotion and demonstrate their investment aligns with the BOI’s promotion policy. BOI companies receive preferential treatment and a more favorable environment, but must meet specific limitations and reporting requirements to maintain their privileges.

BENEFITS OF SETTING UP A BOI COMPANY IN THAILAND

Tax Incentives

BOI-promoted companies may be eligible for various tax privileges, such as corporate income tax exemptions or reductions for a specified period. The duration and extent of tax incentives are determined by the type of business activity and the location of the investment.

Import Duty Exemptions

BOI companies may receive exemptions or reductions on import duties for machinery, raw materials, and other essential equipment required for their operations.

Permission for Foreign Ownership

BOI promotion allows for 100% foreign ownership of a business in certain industries, which is otherwise restricted in specific areas.

Land Ownership

Depending on the business activity, BOI-promoted companies may be allowed to own land for specific purposes, even though foreign ownership is usually restricted.

Additional Deductions and Allowances

BOI companies may be entitled to additional deductions and allowances for certain expenses related to research and development, training, or other qualified activities.

Streamlined Work Permits

BOI companies can benefit from a more straightforward and faster process for obtaining work permits for their foreign employees.

Extended Visa Privileges

Key executives and employees of BOI-promoted companies may receive extended visas, making it easier for them to stay and work in Thailand.

Investment Support Services

BOI provides investment support services and assistance to help companies navigate through various government agencies, regulatory requirements, and bureaucratic procedures.

Customized Incentives

The BOI may provide tailored incentives for high-value investments or projects deemed strategically crucial to Thailand’s economic development.

Infrastructure Support

Some BOI projects may receive assistance or incentives for infrastructure development, utilities, and other facilities.

One-Stop Service Center

The BOI offers a One-Stop Service Center to facilitate and expedite the registration and setup process for BOI-promoted companies.

Access to Free Trade Agreements

BOI-promoted companies may benefit from Thailand’s Free Trade Agreements (FTAs) and enjoy reduced trade barriers when exporting to partner countries.

Allowing foreign skilled craftsmen/experts to work in Thailand

Practically, Thailand prohibits foreign skilled workers to work in the country in order not to cause competition among Thai workers. However, BOI companies can apply for their foreign skilled workers to work in Thailand under the terms and criteria.

BOI-PROMOTED ACTIVITIES

Thailand’s Board of Investment (BOI) encourages numerous sectors and activities that are in line with the country’s economic growth objectives. The promoted industries cover a wide range of sectors, and some of the most typical business operations that may qualify for BOI promotion include:

1. Industries of Agro-Industry, Food, Biotechnology and Medicine
  • Agriculture and Agro-processing

Businesses engaged in agriculture, food processing, and value-added agricultural products.

  • Biotechnology and Life Sciences

Businesses involved in biotechnology, pharmaceuticals, and life sciences research can receive BOI support.

  • Medical and Healthcare Services

Hospitals, clinics, medical tourism, and healthcare-related businesses can receive BOI support.

2. Industries of Machinery, automotive, electrical and electronic appliances industry
  • Manufacturing Industries

This includes electronics, automotive and parts manufacturing, biotechnology, medical devices, machinery, aerospace, and petrochemicals.

3. Industries of Metal and Material Industries, Petrochemicals, Chemicals and Utilities
  • This includes several kinds of one-stop services industries from ssurveying, manufacturing, developing of Metal and Material Petrochemicals, Chemicals and Utilities
4. Industries of Digital, Creative, and High-Value Services
  • Digital and Creative Industries

Businesses in digital content creation, animation, game development, and other creative sectors can be eligible.

  • Logistics and Transport

Activities related to logistics, transport infrastructure, and regional distribution centers can qualify for promotion.

  • Technology and Innovation

Activities related to research and development (R&D), technology innovation, software development, and IT services.

  • Tourism and Hospitality

Projects related to tourism infrastructure, hotels, resorts, and entertainment can be eligible for promotion.

  • High-Tech Services

High-value services such as engineering, consulting, and professional services may qualify for promotion.

  • Renewable Energy and Environmental Services

Companies involved in renewable energy production, waste management, and environmental-friendly initiatives are encouraged.

  • Education and Training

Educational institutions and training centers focusing on specialized skills development may qualify for promotion.

  • E-Commerce and E-Payment Services

Projects focused on developing e-commerce platforms or electronic payment services may be eligible.

BOI COMPANY IN THAILAND ELIGIBILITY

A firm must achieve certain criteria and complete particular conditions in order to be eligible for BOI (Board of Investment) promotion in Thailand. The following variables are used to determine eligibility for BOI promotion:

Business Activity

The planned business activity of the company must be within the industries and activities eligible for BOI promotion.

Investment Value

The corporation must invest a minimum amount stipulated by the BOI. The amount of investment required varies depending on the type of business and its location.

Economic Significance

The BOI evaluates the investment’s economic significance and influence on Thailand’s economy. Businesses that contribute to vital sectors or promote advancements in technology, research and development, and innovation are often given preference.

Export-Oriented Activities

BOI promotion is especially favorable to enterprises that are export-oriented and have the potential to boost Thailand’s export competitiveness.

Employment Creation

The company’s investment should create employment opportunities for Thai nationals, and the BOI evaluates the number of jobs that will be generated as a result of the investment.

Environmental and Social Impact

BOI gives importance to businesses that prioritize environmental sustainability, energy efficiency, and social responsibility.

Location of Investment

The BOI may offer additional incentives to companies investing in certain regions of Thailand, notably those targeted by the government for economic growth.

Technology and Innovation

Companies that introduce advanced technology, research and development activities, and innovations may qualify for special incentives and privileges.

Business Viability

The BOI evaluates the feasibility and viability of the proposed business plan and investment.

Compliance with Regulations

The company must comply with Thai laws and regulations and have a solid track record of legal compliance.

It’s important to remember that the specific advantages and incentives available to BOI-promoted businesses might vary depending on criteria such as company activity, investment amount, location, and the BOI’s promotion policy at the time of application. Before establishing a business under BOI promotion, it is recommended that you check with the BOI or seek guidance from legal and business professionals to understand the current benefits and guarantee your firm qualifies for the incentives. Our legal team can help you establish your BOI company in Thailand!