Benefits of Thailand’s Board of Investment (BOI)
If you’re interested in starting a business in Thailand, the BOI incentivized program could save you a lot of money. The conditions for admission to this program are strict, but the benefits are impressive, so it’s worth the extra effort.
What is the Board of Investment (BOI)?
The Thai government established this body in 1997. The BOI incentivizes foreign and local companies willing to invest in their promoted activities. This agency also performs a role in skill development for preferred industries.
Benefits of BOI
The BOI offers several tax and ownership incentives, including a provision which allows foreign companiesto own property in Thailand. The Board also permits complete or majority ownership of companies operating in the country.
The tax benefits include:
- The exemption from income tax for a set period
- The reduction or exemption of import duties
- The reduction or exemption of dividends tax
- Reduction in costs related to transportation, water, and electricity
- Reduction on costs related to the construction of facilities
Other incentives include:
- 100% foreign ownership
- Permission to bring in experts and skilled workers under certain conditions
- Permission to send money overseas
- Protection against future nationalization
- The right to own property in the country
Who can apply?
Below are the requirements for application:
- You are required to have a capitalinvestment of at least one million THB, or ~$32,500
- There must be at least three promoters who are registered shareholders
- The new company must be registered in Thailand
- You must apply in one of the promoted industries
The entire process is complex and can take around three to six months. Enlist the services of a local legal firm to assist with the procedure.
AWbiz are experts in BOI applications, get in touch with Pat for more info or to get things started.
Here are the steps:
Step 1: Complete the Application
This document consists of two parts and can be completed either as an individual or in your company name. You’ll also need:
- A Business Plan: This will include projections based on clients, expenses, marketing activities, hiring, number of local employees, and so on.
- A Project Plan: This will be a plan of how you’ll contribute to the promoted industry. You’ll need to lay out what services or products you’ll produce, software and machinery required for operations, product use, and so on.
Step 2: Submit Application and Schedule your Presentation
Submit your completed application online. You’ll also need to set up an appointment to present your project to the BOI Committee.
Step 3: The Presentation
This step is where you get to promote the project. It’s crucial to craft aclear and thorough presentation to impress the Board. They must understand the value that your company offersall parties involved.
You should also go over your planned expenditures, projections, and so on. Think of it as a presentation to a critical investor.
It takes about 40 days for the Board to process your application and reply.
Step 4: Register Your Company
If the BOI gives you the go-ahead, you’ll have to register with the Department of Business Development and the BOI. One of the conditions to do so is that the company is registered in Thailand. Make sure you complete this process within six months of receiving BOI approval.
Step 5: The BOI Certificate is Issued
You will receive the certificateupon the completion of the registration process, and you’ll also have to provide proof of funds (minimum of THB 250,000, or approximately $8,100).
Step 6: Getting the Visa and Work Permits
These are necessary for any directors or employees that you bring into the country.
Step 7: Confirming Compliance
This ongoing process involves notifying the relevant authorities about the progress of the company.