The Thailand Board of Investment, or BOI, is a government agency that focuses on bringing foreign investors to Thailand. High-dollar investors benefit from getting certified by the BOI, including the ability to operate a 100% foreign-owned business on Thai soil. To become a BOI company, your business must invest the required amount of capital into one of the BOI’s promoted activities. If you do so, you will enjoy lots of benefits, many of them related to taxes.
Plizz can assist you in the BOI application, Contact our Legal Team for a free consultation
Benefits of a BOI Company
A BOI company can be awarded tax and non-tax incentives, depending on the category of activities it falls into. The tax incentives are the main reason investors apply for BOI incentive. They discover they can save lots of money by running a BOI company.
First, BOI companies can be either exempt from import duties or pay a reduced rate. There is also an exemption on the income tax and dividends for the juristic person. This can save investors a great deal of money each year.
In addition, there are three, five, and eight-year corporate tax exemptions available for BOI companies. These exemptions are based on the company’s activities. This can be complicated, so it is best to discuss the exemptions with Plizz’s lawyer. The lawyer will explain how to maximize your exemptions to optimize your savings.
The non-tax benefits are also quite remarkable. First, BOI companies have access to permits they can use to bring in skilled workers and experts from other countries. They can also obtain a permit to remit money abroad and own land, and the company is protected against nationalization.
BOI companies can also hire foreigners without having to follow the quota of four Thai employee per one foreign employee.
Also, the government adds time-sensitive benefits on a regular basis. Plizz can help BOI companies understand each of these benefits and how to take advantage of them.
Disadvantages of Operating a BOI Company
While operating a BOI company has many advantages, there are some disadvantages, as well. For many investors, these disadvantages are not a big enough hurdle to prevent them from starting a BOI company.
First and foremost, it is difficult to start a BOI company. The BOI has strict guidelines in place, and the application process is lengthy. A single mistake during the application process can prevent you from opening a BOI company. Fortunately, Plizz removes this obstacle. With our help, getting BOI approval is much easier. Plizz’s lawyers can even walk you through the interview process, so you will be prepared.
The minimum capital investment can also be a drawback for some investors. While the capital attached is too much for some, those who want to put lots of money into Thai investments don’t see this as a problem. They are happy to put the money in due to the excellent return on investment many BOI companies enjoy.
Finally, BOI companies are limited in what they can invest in. While they have many investment opportunities, this is bothersome for some business owners that want to expand their reach even further. However, most are happy to operate within the limits set forth by the BOI.
The process of opening a BOI company is time-intensive, and if a single requirement is missed, the application will not be approved. It’s critical for investors who wish to open a BOI company to seek legal counsel.
A BOI company’s operations are restricted to the approved business. Approved businesses include:
- 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
There is a share capital requirement of Thai Baht 3 million, although it could be higher for specific projects. Talk to a lawyer at Plizz to find out how much you will have to invest.
Timeline for Setting up a BOI Company in Thailand – Meeting the Requirements
The process begins by preparing the application. The application is approximately eight pages in length and requires financial projections, the estimated number of employees, basic information, and more. It must include a business plan and a project plan, so investors are encouraged to conduct a feasibility study beforehand. The application process generally takes two to four weeks to complete.
One to two weeks after applying, the Thailand government should schedule a BOI presentation. This is normally scheduled one to two weeks in advance. The company founders must travel to Bangkok for an interview at the BOI headquarters. Plizz’s lawyers can help you prepare for the interview, so you will be ready. Interviews include many of the same questions, so you will be fully prepped by the time you land in Bangkok. The presentation takes one day.
The BOI generally takes approximately 40 days to make a decision. If the company receives a positive resolution, it has approximately six months to register with the Department of Business Development. The registration process can take one to two weeks.
Then the Board of Investment issues the BOI certificate. This is normally done within two weeks of registering with the Department of Business Development.
Founders must then secure visas and work permits. This can be done in as little as a day with the help of Plizz.
Once the BOI company is set up, it must maintain proper reporting and compliance. This can be cumbersome. There are specific reporting and compliance schedules. If the company fails to meet the guidelines, it will receive a warning note from the BOI. The company has the chance to respond to the letter with an explanation. If the response is not accepted, the license can be revoked.
Companies also must follow strict accounting procedures. The accounting practices are monitored, and failing to meet them could cause the license to be revoked. Fortunately, Plizz can help with this, as well.
Are you ready to begin the process of setting up a Thailand BOI company? Begin by getting a quote from Plizz.
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