BOI Company in Thailand

The Thailand Board of Investment (BOI) is a government agency designed to attract foreign investors to Thailand. Foreign investors stand to gain substantial advantages by becoming certified by the BOI, including the ability to operate a 100% foreign-owned business within Thailand. To qualify as a BOI company, your business must invest the required capital into one of the BOI’s approved sectors. In doing so, you'll unlock numerous benefits, particularly in the area of taxation.

Benefits of a BOI Company

BOI companies are eligible for both tax and non-tax incentives, depending on the sector in which they operate. The primary draw for most investors is the range of tax benefits available. Many discover that running a BOI-certified company allows them to significantly reduce their tax liabilities.

First, BOI companies can benefit from exemption or reduction in import duties. Additionally, income tax and dividend exemptions for the juristic entity provide significant savings each year.

Moreover, BOI companies can qualify for corporate tax exemptions lasting three, five, or even eight years, based on the company’s operations. As these exemptions can be complex, it is advisable to consult with Lotus Ledger’s team. 

The non-tax incentives are equally compelling. BOI companies gain access to permits for hiring skilled workers and experts from abroad. They can also remit funds abroad, own land, and enjoy protection from nationalization.

BOI companies are also not subject to the usual rule of hiring four Thai employees for each foreign worker. Additionally, the government regularly introduces time-sensitive incentives, and Lotus Ledger can assist you in understanding how to leverage these opportunities.

Disadvantages of Operating a BOI Company

While there are numerous advantages to running a BOI company, some challenges come with the territory. For many investors, these drawbacks are manageable and do not outweigh the benefits.

One of the main challenges is the complexity of starting a BOI company. The BOI enforces strict guidelines, and the application process can be time-consuming. A single mistake in the process can prevent approval. However, Lotus Ledger can streamline this process. With our support, obtaining BOI approval becomes much more straightforward. 

Another potential drawback is the minimum capital investment requirement. While this may be a significant amount for some, those planning to make substantial investments in Thailand often find it worthwhile, given the potential for high returns on investment.

Finally, BOI companies are limited in terms of the sectors they can invest in. While the opportunities are vast, some business owners may find these restrictions limiting. Nevertheless, many find the scope of activities permitted by the BOI more than sufficient for their needs.

Legal Requirements

Establishing a BOI company is a detailed process, and missing a single requirement can result in rejection of the application. Therefore, it’s crucial to seek expert legal guidance if you wish to proceed with opening a BOI company.

BOI-certified companies are restricted to specific business categories, including:

• Agriculture and agricultural products

• Mining, ceramics, and basic metals

• Light industry

• Metal products, machinery, and transport equipment

• Electronic industry and electronic appliances

• Chemicals, paper, and plastics

• Service and public utilities

• Technology and innovation development

The minimum capital requirement for a BOI company is 3 million Thai Baht, though this can vary depending on the project. 

Timeline for Setting up a BOI Company in Thailand – Meeting the Requirements

The process begins by preparing your application, which typically spans eight pages. It requires financial projections, estimated employee numbers, and basic company information, along with a business and project plan. We recommend conducting a feasibility study beforehand. The application process typically takes 2 to 4 weeks.

Once submitted, the Thai government will usually schedule a BOI presentation within 1 to 2 weeks. This interview will take place at the BOI headquarters in Bangkok, and the company founders must attend. Lotus Ledger’s legal team will thoroughly prepare you for the interview, ensuring you know exactly what to expect. The interview itself lasts just one day.

The BOI typically takes about 40 days to issue a decision. If the application is approved, you will then have around six months to register with the Department of Business Development. This registration process can take 1 to 2 weeks.

Once registered, the BOI will issue the certification, usually within two weeks of registration.

Afterward, founders will need to secure visas and work permits, a process that Lotus Ledger can help complete in as little as a day.

Once your BOI company is established, it must adhere to stringent reporting and compliance regulations. Non-compliance could result in warnings or even revocation of the license. Fortunately, Lotus Ledger can help you stay on track with these requirements.

Reach out to Lotus Ledger for a quote and get started today.