Foreign companies, together with local firms, can access the most significant incentives by establishing a Thailand BOI company. The Thailand Board of Investment (BOI) provides companies with multiple advantages, including tax exemptions as well as streamlined work permit procedures and relaxed foreign ownership restrictions.
The following guide explores everything a person needs to know about establishing a BOI-promoted Thai company.
Thailand BOI Company: What is it?
BOI in Thailand has established a corporation known as Thailand BOI. Under government control, BOI is an organisation that supports businesses in targeted industries to attract local and foreign capital. BOI focuses on sectors such as technology, industry, agriculture, and healthcare, among others.
Advantages of Starting a BOI Company in Thailand
- Tax benefits include free importation of machinery and raw materials, a drop in import duty, and eight years of exemptions from corporate income tax.
- Target companies could have 100% foreign ownership.
- Work Permits and Visas: BOI enterprises welcome easy visa and work permit policies for executives and foreign employees engaged in Thailand.
- Usually not permitted under Thai company policies, foreign BOI companies are free to hold land for commercial use.
- Thai-to-foreign employee minimum ratios are not required, so foreign companies have greater latitude.
Thailand BOI Company Registration Requirements
To qualify for BOI promotion, companies must meet the following criteria:
- The company ought to be in a sector that permits it.
- A comprehensive business plan should be submitted, along with investment proposals and financial projections.
- The company should have a minimum investment capital (typically THB 1 million or more, depending on the sector).
- The company is required to adhere to local employment laws, such as hiring and training Thai workers in some instances.
Steps to Establish a Thailand BOI Firm
Business viability and research
- Identify if your company is in the BOI-qualifying sectors.
- Gather market research to confirm profitability and viability.
Prepare and file the BOI application
- Write a comprehensive application with business goals, an investment strategy, and financial projections.
- Use the Thailand Board of Investment application.
Application review and interview
- The BOI will go over the application and call business owners for an interview.
- Should the project fit BOI’s criteria, approval will be given.
Registering a business
- Register the business under the Ministry of Commerce via the Department of Business Development (DBD).
- Obtain a corporate bank account and deposit the required capital.
Obtain BOI privileges and licenses
- After approval, the company must apply for specific incentives and work permits.
- Register for VAT and other necessary tax requirements.
Begin business operations
- Employ staff, acquire required operating licenses, and initiate business operations.
Ask for Professional Help Regarding BOI Registration
Applying some tips for business success is important. However, registration of a Thailand BOI company can make it difficult to grasp the local laws and compliance policies. Expert advising services can simplify the process and help reach a good registration.
Acclime Thailand specialises in helping businesses complete their BOI applications and company registrations. Their knowledgeable staff guarantees a simple and hassle-free process from documentation preparation to handling Thai officials.
Visit their website to learn further about the advantages and obligations of establishing a Thai company supported by BOIs.
