BOI Thailand Company Setup – Requirements & Procedures
100% Foreign Owned Company – BOI Thailand Company Setup
What’s a BOI Company Thailand? BOI Thailand Company Setup
So, the Board Of Investment (BOI) is a policy created by the Thai government that portrays industrial promotion. At this point, the Thai government is actively subsidizing and incentivizing foreign national businesses to establish businesses in Thailand, the first country to have such an investment law. So, learn the intricacies of BOI Thailand Company Setup to navigate the regulatory landscape and optimize your business operations in the Land of Smiles.
Keep the following main aspects in mind:
1. The Thai state does not nationalize the activity of that promoted person
2. The state does not undertake a new activity in competition with the promoted person
3. The state does not monopolize the sale of products, or goods of the same type, or even similar to those proposed by the promoted person
4. The state does not control the price of the products or goods of the activity promoted by the respective person
5. That person will be allowed to export products or goods of his activity
6. The Thai state does not allow any government agency, enterprise, or government organization to import into the kingdom with import duties exempt from any kind of products, or goods promoted by a person.
Current Policy of BOI
- That is to say, promoting investments that enhance competitiveness through research, development, innovation, and creation in industrial, agricultural, and SME sectors can help reduce social-economic disparities.
- So, promote environmental protection activities, increase energy savings, and encourage the use of alternative energy to stimulate balanced and long-term growth.
- On the other hand, it is also possible to promote investment in the border provinces of southern Thailand, which aims to develop the local economy and will support efforts to increase security in the area.
- So, promoting special economic zones, implicitly, border areas, both inside and outside industrial zones, which aims to create an economic link with neighboring countries and to prepare the Kingdom of Thailand for entry into the Economic Community (AEC)
- The aim is to promote Thai investment to increase the competitiveness of Thai enterprises and their role in the global economy
- To be able to have a BOI company, your business must invest the necessary amount of capital in one of the activities promoted by BOI.
- In short, when this is possible, you have the chance to enjoy a lot of benefits, and many of them are tax-related.
- BOI companies may be exempt from import duties or may be able to pay a lower fee.
- Also, there are a lot of advantages regarding income tax and dividends for legal entities.
- BOI companies have the possibility not to pay the profit tax for a period between 3, 5, and 8 years, but this aspect is based only on the company’s activities. J&E Concierge Pattaya can help you immediately understand everything you need to know about these issues.
- At this point, it is also important to mention the non-tax benefits, implicitly, BOI companies have the opportunity to obtain work permits for skilled workers and experts from other countries.
- Thai is to say, they can obtain a permit to remit money abroad and have the opportunity to own land, and the company is fully protected against nationalization.
- Within a BOI company, you can hire as many foreigners as you want.
Requirements:
Moreover, if only one of the existing requirements is omitted, your request will not be approved.
Therefore, it is recommended to turn to experts who can help you in this field, which is why we remind you again that if you want to open a BOI company in Pattaya, we are here for you.
At this point, the share capital requirement is 3 million baths, but for some specific projects, it could be even higher.
A BOI company’s operations are restricted to the approved business
BOI Thailand Company Setup
Approved businesses include:
- Agricultural field
- Metals, ceramics, and mining
- Light industry
- Transport machinery and equipment and metal products
- Electronic industry
- Plastics, paper, and chemicals
- Public services
- Technology and innovation development
So, the application you are requesting for a BOI company must include basic information, such as financial information and the number of employees. For that reason, you need a business plan so that encouraged investors can conduct a study in advance.
Above all, this process takes approximately two to 4 weeks. In the weeks following the application, the Thai government plans to schedule a BOI presentation.
It generally takes about 40 days for BOI to decide on your application. Then again, if your company receives a positive response, you have 6 months to register with the Department for Business Development
The BOI registration process can take about two weeks. Following this registration, the Investment Council issues the BOI certificate.
All BOI founders must secure their visas and work permits. With the help of the J&E Concierge Pattaya team, you can achieve this aspect in just one day.
Once the BOI company is founded, it must maintain proper reporting, and if the requirements are not met, it will receive a warning note from the BOI.
Summing up, each BOI company must adhere to specific accounting procedures, which are monitored. Non-compliance could result in the revocation of the license.
So, are you ready to begin the process of setting up a Thailand BOI company? At this point, J&E Concierge Pattaya team can help you throughout this process.
Setting up a BOI Thailand company offers benefits like 100% foreign ownership, tax exemptions, work permit and visa facilitation, and easier business operations in Thailand’s promoted industries.
To apply for a BOI Thailand company setup, you need to submit a business plan, meet industry-specific criteria, and get approval from the Board of Investment (BOI) before registering your company.
BOI Thailand company setup requires a detailed business proposal, investment capital meeting BOI thresholds, and operations in a promoted industry such as tech, manufacturing, or tourism.
