For foreign investors seeking to tap into Thailand’s growing economy, registering a company under the Thailand Board of Investment (BOI) presents a compelling opportunity. The BOI, a government agency, offers various incentives and privileges to attract foreign direct investment (FDI) in targeted industries and promote economic development. This guide delves into the key aspects of registering under the BOI, exploring the benefits, eligibility criteria, and crucial steps involved in securing approval.
Advantages of Registering with the BOI
Obtaining BOI promotion privileges offers several significant advantages for foreign-owned companies:
- Corporate income tax benefits: Enjoy reduced corporate income tax rates, tax exemptions for a specific period, or tax holidays depending on the promoted activity and location.
- Import duty exemption or reduction: Benefit from exemptions or reduced import duties on machinery, equipment, and raw materials required for production.
- Exemption from specific taxes: Receive exemptions from specific taxes, such as import duty on finished products for export, and enjoy simplified tax procedures.
- Work permit and visa facilitation: Facilitate the process of obtaining work permits and visas for foreign executives and specialists needed for the project.
- Land ownership rights: In specific cases, BOI-promoted companies may have the right to own land for their operations.
Eligibility Criteria for BOI Promotion
The BOI prioritizes investments in specific sectors and activities aligned with Thailand’s national development goals. Some key eligibility criteria include:
- Industry: The company’s proposed activity should fall within the BOI’s promoted industries, which encompass various sectors like technology, manufacturing, tourism, and healthcare.
- Minimum investment: The company must meet the minimum investment threshold, which varies based on the promoted activity and location.
- Technology transfer: The company may need to demonstrate a commitment to transferring technology and knowledge to the local workforce.
- Job creation: The company’s project should contribute to job creation and economic development in Thailand.
The BOI Registration Process:
The BOI registration process generally involves the following steps:
1. Pre-registration Preparation:
- Research and select the appropriate BOI promotion scheme: Analyze and choose the BOI promotion scheme best suited to your company’s activity and location.
- Prepare a detailed project proposal: This document outlines the company’s proposed project, investment plan, technology transfer, and expected economic benefits for Thailand.
- Gather necessary documents: Compile required documents such as the company’s registration certificate, financial statements, and feasibility study.
2. Application Submission:
- Submit the completed application form and supporting documents to the BOI.
- Pay the application fee.
3. BOI Review and Approval:
- The BOI Committee reviews the application and project proposal.
- If the application is accepted, the BOI issues a Promotion Certificate, outlining the specific privileges and conditions granted to the company.
Additional Considerations:
- Seeking professional guidance: Consulting with an experienced BOI consultant or lawyer can significantly enhance your chances of successful application and ensure compliance with all regulations.
- Meeting local content requirements: Depending on the promoted activity, certain projects may need to fulfill specific local content requirements regarding sourcing materials or employing Thai personnel.
- Maintaining compliance: Adhering to the terms and conditions of the BOI promotion throughout the project’s duration is crucial to retain the granted privileges.
Conclusion:
Registering a company under the Thailand Board of Investment presents a strategic advantage for foreign investors seeking to establish a competitive presence in the Thai market. By understanding the benefits, eligibility criteria, and comprehensive approach to the registration process, you can position your company to leverage BOI incentives and contribute to Thailand’s economic development while maximizing your investment potential. Remember, thorough research, meticulous preparation, and professional guidance are crucial for navigating the BOI application process and unlocking the full potential of your business venture in Thailand.
