Thailand remains one of the most attractive destinations for foreign investors in Southeast Asia. One of the key advantages for foreign companies seeking to establish a business presence in Thailand is the ability to register under the Thailand Board of Investment (BOI). The BOI is a government agency that promotes investment in industries that contribute to the country’s economic growth. By registering with the BOI, companies can access a wide range of benefits, including tax incentives, relaxed foreign ownership rules, and streamlined processes for work permits and visas.
Understanding the BOI
The Thailand Board of Investment operates under the Office of the Prime Minister and aims to promote investment in key sectors of the economy, including technology, manufacturing, agriculture, healthcare, digital services, and more. The BOI’s primary role is to encourage both Thai and foreign investors to invest in industries that will boost Thailand’s competitiveness, promote innovation, and generate employment.
Businesses that align with the BOI’s promoted activities can apply for privileges and incentives designed to make their investment more attractive. These benefits can greatly reduce startup costs and administrative burdens, making the BOI route a favored option for many investors.
Eligible Business Activities
Not all businesses qualify for BOI promotion. The BOI focuses on industries that support the country’s development goals. Some of the eligible sectors include:
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Manufacturing of high-tech and eco-friendly products
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Digital businesses such as software development and digital services
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Agriculture and agricultural product processing
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Biotechnology and medical device production
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Research and development (R&D) services
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Tourism projects that offer unique experiences
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Logistics and infrastructure development
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Alternative energy and environmental protection projects
Each of these sectors comes with its own set of criteria and conditions. Businesses must meet specific technological, capital investment, or employment requirements to qualify.
Advantages of BOI Promotion
Registering a company under the BOI comes with several advantages that can significantly enhance a business’s success in Thailand:
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✅ Tax Incentives: One of the most attractive benefits is the exemption of corporate income tax for up to 3-13 years, depending on the project’s category. There may also be exemptions or reductions on import duties for machinery and raw materials.
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✅ Foreign Ownership Privileges: Normally, foreign investors can only hold a minority share in a Thai Limited company. However, BOI-promoted businesses may enjoy 100% foreign ownership rights, depending on the business type and sector.
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✅ Work Permit and Visa Facilitation: The BOI offers streamlined processes for securing work permits and visas for foreign specialists, allowing businesses to quickly bring in skilled workers and management personnel.
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✅ Land Ownership Rights: Foreign companies are generally prohibited from owning land in Thailand. However, BOI-approved companies may be granted the right to own land for business operations.
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✅ No Restrictions on Foreign Currency: BOI-promoted companies are allowed to remit money abroad in foreign currency with minimal restrictions.
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✅ One-Stop Service: The BOI provides a “One-Stop Service Center” to assist investors with company registration, visa and work permit applications, and other administrative procedures, making the setup process faster and more efficient.
Steps to Register a Company Under the BOI
1. Preliminary Consultation
Before proceeding with an application, it is advisable to consult with the BOI or a legal advisor to determine whether your business qualifies. This initial step can save time and resources by ensuring the company aligns with BOI-promoted activities.
2. Submit an Investment Promotion Application
Prepare and submit a comprehensive application to the BOI detailing the nature of the business, investment capital, employment plan, technology usage, and expected benefits to the Thai economy. The application must include a business plan and financial projections.
3. BOI Review and Approval
The BOI will review the application through interviews, presentations, and sometimes site visits. This process can take from a few weeks to a few months, depending on the complexity of the project and the sector.
4. Issuance of BOI Promotion Certificate
Once the application is approved, the BOI issues a Promotion Certificate outlining the incentives and conditions granted to the company. Companies must comply with the conditions stated in the certificate to maintain their BOI privileges.
5. Company Registration
After receiving the Promotion Certificate, the company must be formally registered with the Department of Business Development (DBD) under the Ministry of Commerce. This involves reserving the company name, preparing the Articles of Association, and registering the business entity.
6. Commence Operations
After registration, the company must follow through with the investment plan, start operations within the required time frame, and report progress regularly to the BOI. Any changes to the project must be approved by the BOI to avoid revocation of privileges.
Key Considerations
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✅ Capital Requirements: The BOI often requires a minimum capital investment, which varies by industry.
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✅ Compliance Obligations: Companies must strictly follow the BOI’s reporting and operational requirements.
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✅ Time Frame: Companies usually need to implement their investment within a specific period after receiving approval.
Conclusion
Registering a company under the Thailand Board of Investment can be a highly beneficial path for foreign investors. With substantial tax breaks, relaxed ownership laws, and support for business operations, the BOI program enhances Thailand’s attractiveness as an investment destination. However, the process involves detailed documentation and strict compliance with regulations. Seeking professional guidance during the application process is highly recommended to maximize the chances of approval and to fully enjoy the benefits offered by the BOI.