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.
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.
BOI companies may receive exemptions or reductions on import duties for machinery, raw materials, and other essential equipment required for their operations.
BOI promotion allows for 100% foreign ownership of a business in certain industries, which is otherwise restricted in specific areas.
Depending on the business activity, BOI-promoted companies may be allowed to own land for specific purposes, even though foreign ownership is usually restricted.
BOI companies may be entitled to additional deductions and allowances for certain expenses related to research and development, training, or other qualified activities.
BOI companies can benefit from a more straightforward and faster process for obtaining work permits for their foreign employees.
Key executives and employees of BOI-promoted companies may receive extended visas, making it easier for them to stay and work in Thailand.
BOI provides investment support services and assistance to help companies navigate through various government agencies, regulatory requirements, and bureaucratic procedures.
The BOI may provide tailored incentives for high-value investments or projects deemed strategically crucial to Thailand’s economic development.
Some BOI projects may receive assistance or incentives for infrastructure development, utilities, and other facilities.
The BOI offers a One-Stop Service Center to facilitate and expedite the registration and setup process for BOI-promoted companies.
BOI-promoted companies may benefit from Thailand’s Free Trade Agreements (FTAs) and enjoy reduced trade barriers when exporting to partner countries.
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.
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:
Businesses engaged in agriculture, food processing, and value-added agricultural products.
Businesses involved in biotechnology, pharmaceuticals, and life sciences research can receive BOI support.
Hospitals, clinics, medical tourism, and healthcare-related businesses can receive BOI support.
This includes electronics, automotive and parts manufacturing, biotechnology, medical devices, machinery, aerospace, and petrochemicals.
Businesses in digital content creation, animation, game development, and other creative sectors can be eligible.
Activities related to logistics, transport infrastructure, and regional distribution centers can qualify for promotion.
Activities related to research and development (R&D), technology innovation, software development, and IT services.
Projects related to tourism infrastructure, hotels, resorts, and entertainment can be eligible for promotion.
High-value services such as engineering, consulting, and professional services may qualify for promotion.
Companies involved in renewable energy production, waste management, and environmental-friendly initiatives are encouraged.
Educational institutions and training centers focusing on specialized skills development may qualify for promotion.
Projects focused on developing e-commerce platforms or electronic payment services may be eligible.
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:
The planned business activity of the company must be within the industries and activities eligible for BOI promotion.
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.
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.
BOI promotion is especially favorable to enterprises that are export-oriented and have the potential to boost Thailand’s export competitiveness.
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.
BOI gives importance to businesses that prioritize environmental sustainability, energy efficiency, and social responsibility.
The BOI may offer additional incentives to companies investing in certain regions of Thailand, notably those targeted by the government for economic growth.
Companies that introduce advanced technology, research and development activities, and innovations may qualify for special incentives and privileges.
The BOI evaluates the feasibility and viability of the proposed business plan and investment.
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!