- Business Registration in Thailand is increasing every year due to unprecedented economic growth in the last decade. Despite political complications, Thailand is still attractive to inward investment and attracts investment due to its perceptions as a relatively transparent and easy place to set up and operate a business.
- Investors are looking to Thailand to expand their business either for low cost and high quality manufacturing or for a regional marketing base to the South East Asia Region.
- Thailand itself is a rapidly growing market of increasingly sophisticated consumer base with a taste for western made imported brands or locally manufactured OEM products with economic growth among the top 10% globally.
- In 1997, the the Board of Investment (BOI) option was established by the Thai government to provide investment incentives for local and foreign businesses wishing to invest in projects and activities being promoted by the agency.
- Investment promotion policies were adjusted in order to attract more businessmen; decentralize Thailand’s industrial base and respond to future economic situations.
Two of the most significant privileges offered by the Thai BOI for promoted projects are:
- Tax Privileges – for example: corporate income tax exemption, tariff exemption or reduction on imported machinery and tariff exemption or reduction on imported raw material.
- Non-Tax Privileges – for example: permission to own land, permission to bring foreign expert employee to work on the promoted projects, exemption on foreign ownership of companies and exemption from work permit and visa rules.
Regardless of location or activities, Non-Tax Privileges are available to all Thai BOI-promoted projects. The Thai BOI assists investors in three ways:
- Reduces the risks associated with investment.
- Reduces initial investment costs and to improve the rate of return on investment.
- Supports services at all times.
The Thai BOI has listed the following categories as eligible for Board of Investment privileges::
- Agriculture and Agricultural Products;
- Chemicals, Paper and Plastics;
- Electronic Industry and Electric Appliances;
- Light Industry;
- Metal Products, Machinery and Transport Equipment;
- Mining, Ceramics and Basic Metals;
- Services and Public Utilities.
Generally, companies that will receive priority for Thai BOI licensing are those involved in technology and innovation, manufacturing and export.
In addition to these industry categories, other investments showing high potential business growth and also some non-industrial businesses such as nursing homes for the aged and movie production are also promoted by the Thai BOI with investment incentives
The Thai BOI application procedures for obtaining promotional privileges or investment incentives are summarized below:
- Obtain the appropriate Thai BOI application form. The Thai BOI provides application forms specific to each category of industry.
- Complete the Thai BOI application form and prepare the required documents for submission.
- Submit the Thai BOI application form along with all required documents.
- Contact Thai BOI to confirm the status of the Thai BOI application within ten working days from the date of submission and request a schedule for presentation and interview for the investor with the Thai BOI.
- Thai BOI will review and evaluate Thai BOI application following the interview and presentation.
- Evaluation of the Thai BOI application is based on satisfying and complying with investment requirements under three categories:
- Investment value of less than THB 80 million, approval or non approval will be known within 40 working days after application submission
- Investment value of THB 80 – 750 million, approval or non-approval will be known within 60 days from date of application submission.
- Investment value of more than THB 750 million, approval or non-approval will be known within 90 working days after documents submission
- Investors will receive notification within 7 working days from the Thai BOI meeting’s resolution adoption date.
- Investors to submit promotion acceptance form within 1 month after receipt of notification.
- Thai BOI will facilitate acceptance of promoted status
- Investors to submit company establishment documents within 6 months after receiving approval
- Thai BOI to issue Promotion Certificate within ten days after receipt of company establishment documents
- The Office of the Thai BOI will inform the applicant in writing within 7 working days of the approval date, detailing the conditions, privileges and benefits granted. An application form for the promotion certificate will be attached, together with the notification of approval.
- Upon receipt of the Office of the Thai BOI letter approving the project, the applicant must reply by completing the form of promotion acceptance and sending it back to the Office of the Thai BOI within one month. If any changes or special conditions and privileges are sought, they should be requested at that time.
- If the applicant is unable to reply within the time limit, a letter of clarification should be sent to the Office of the Thai BOI, which will consider extending the deadline by not more than one month at a time, up to a maximum of three times.
- In order to receive the investment promotion certificate, the applicant must set up the company within six months of accepting the approval, and submit all of the following documents to the Office of the Thai BOI:
- Application form for Promotion Certificate
- The Memorandum of Association
- The Certificate of Business Registration
- A certificate stating the registered capital, a list of directors indicating those empowered to bind the company, and the address of the head office
- A list of the shareholders and their nationalities
- A document showing the transfer of funds from overseas, or a certificate of investment from overseas issued by the Bank of Thailand for foreign investors
- A joint venture contract, licensing agreement, technical assistance contract and/or technology transfer contract (if any)
- Form of utility and manpower requirements.
- If the applicant is unable to submit the documents within the required timeframe, an explanatory letter must be sent to the Office of the Thai BOI, which may consider extending the deadline by four months each time, up to a maximum of three times.
- The Office of the Thai BOI will issue the investment promotion certificate after receipt of required documents, and the promoted company should follow the conditions laid out in the Certificate.
- In the case of discrepancies or errors, or any amendment is sought, the Office of the BOI must be notified in writing, with all relevant documents attached.
- Application to the Thai BOI can be very complicated if you have not done it before, and may take you several weeks to complete the process. This is mainly due to the registration procedures: detailed document requirements for Thai language. At TSL & Associates, our experienced lawyers (Expats and Thai) have the language and expertise to communicate in Thai on your behalf and successfully review your company registration.
- TSL & Associates can also provide assistance in setting up efficient tax solutions for your Thai BOI. Our lawyers are experts in the field and can advise clients on the correct basis for assessment of tax liabilities, overcharging, exemptions and incentives provided by the Thai government.
- For your convenience TSL & Associates can help you set up a company while getting you a Thai work permit and a Thai Visa at the same time. Please contact us to assist you with your Thai BOI Application!
Notes Regarding Thai BOI Establishment:
- Choosing a Thai law firm specialising in international law to assist you with your Thai BOI establishment in Thailand will ensure that it is properly registered and avoid having legal difficulties in the future.
- If you would like assistance with choosing the type of Thai BOI structure and setting up the BOI in Thailand please consult TSL.
TSL Thailand Contact Information:
For more information about applying for a Visa or requesting our Legal Services, please visit the TSL Thailand Contact page.
Or you can contact us by phone:
International: +66 84-361-2818
In Thailand: 087-595-4918 or 02-168-7734