The Board of Investment in Thailand, also know as the BOI, is a government organization that promotes investment opportunities in Thailand and overseas. It is geared to bring innovation and technology into Thailand and increases economic growth in Thailand. The BOI’s role is to help investors to open businesses in Thailand while providing them with benefits, including tax exemptions (0% Corporate Income Tax for up to 13 years for some business types), 100% foreign ownership, as well as work permit and visa help for qualified individuals.
BOI - Promotion Benefits
If your company gets promoted by the BOI your company gets both tax and non-tax benefits.
The tax benefits may include:
- exemptions or reductions on corporate income taxes
- exemptions import duties on machinery and raw materials in research and development businesses
- exemptions on production for export
The non-tax benefits include:
- 100% foreign ownership
- easy visas and work permit approvals
- land ownership
Important Notes About A BOI Company
There are a few things that you need to keep in mind when considering the BOI promotion and its benefits;
First: The investment promotion can benefit a new company or an existing company. If BOI benefits were granted for an existing company, benefits only apply to the section of your business in which they were granted. For example, if your company deals with electronics and car parts, and you get BOI approval for your electronics business, you can’t apply the benefits granted to your car parts business.
Second: The benefits start when you get your investment promotion certificate. This will happen after the Board of Investment approves your case.
Third: The BOI must approve each benefit in writing, nothing should be taken for granted.
Fourth: Minimun 1,000,000 Thai Baht in capital is required and 25% must be evidenced from the start and the remaining balance within 90 days of approval.
How To Apply For The BOI Promotion?
The process of applying for the BOI promotion is a little complex and involves a bureaucratic process of compiling paperwork and other documents deemed necessary by the Board. It is recommended that investors who are interested in applying for a BOI promotion find an experienced firm that specializes in setting up BOI companies. You will be very pleaed to learn that Professional Corporate Services has the expertise needed to get your project approved.
Eligible activities for promotion by business categories
In order to be qualified for a BOI promotion, projects must engage in at least one of the eligible business activities listed by the Board. These include:
- Agriculture and Agricultural Products
- Mining Ceramics and Base Metals
- Light Industry
- Metal Products, Machinery, and Transportation Equipment
- Electronics and Appliances
- Chemicals, Paper and Plastic
- Services and Public Utilities
- Technology and Innovation Development
Documents Required For A Board Of Investment Application
It could take anywhere from three to six months to get approval from the BOI, if you hire a professional firm that specializes in BOI, like PCS, to apply for you. It can take even longer if you do it yourself. There are a few documents that a professional firm will request from you here is a list of the most important ones;
- copy of the picture page of each shareholder's passport
- copy of the picture page of each director's passport
- copy of the picture page of the applicant's passport
- a detailed business plan
- a detailed financial plan
- a completed application form
Items 1, 2 & 3 are self explanitory.
Item 4 is extremely important. If you don't know how to do a business plan hire someone who does know and have them prepare it for you. It is one of the key documents you will present to the BOI.
Item 5 is important as well as you must show where the capital will come from and what your finances will look like in 3 years so you need a minimum 3 year financial plan.
Item 6 this needs special attention. The forms are eight to ten pages long and filled with questions about your company’s status, shareholders, investment plan, product development, targeted customers, technology transfer, and more. Please make sure you answer all the questions. If you don't your application will be rejected and you will need to start for the beginning.
Interviewing:
After you submit the forms, you have to contact the BOI within ten working days to make an appointment for an interview. A word of caution - Know your Business Plan and everything you wrote in your application. The BOI officer will most likely quiz you on your statements. If the interview goes smoothly all you need to do is wait until the BOI informs you or your agent. If the BOI wants more information they will ask for it and may even request a second interview.
Summary - Setting Up A BOI Company
These are the basics. We strongly suggest that applicants interested in applying for the BOI Promotion, make an appointment with our team of experts, to meet and discuss the BOI process in detail. AND most importantly life after BOI approval. Most of the benefits are not without consequences. Some of these include surprise inspections, audits of accounting practices, audits of business activities and more. Don't despair, a good firm like PCS can help you deal with all the issues that may arise. You should also take into consideration that there are other corporate structure options available, that are not as demanding as the BOI and may be better alternatives For a FREE first consultation please don't hesitate to fill in the form below to Contact Us!
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