Registering a Company Under the Thailand Board of Investment

Thailand’s Board of Investment (BOI) serves as a key government agency under the Office of the Prime Minister, designed to promote both domestic and foreign investment in Thailand. Through generous tax incentives, relaxed foreign ownership restrictions, and simplified visa and work permit processes, the BOI aims to attract companies that contribute to the country’s economic and technological advancement.

Registering a company under the BOI is one of the most strategic steps for foreign investors seeking to establish a business presence in Thailand. However, not all companies qualify for BOI privileges. The BOI categorizes eligible businesses into specific sectors, each with its own requirements and benefits. Understanding the types of BOI-promoted companies and the registration process is crucial for ensuring compliance and maximizing investment opportunities.

1. Overview of BOI Promotion in Thailand

The BOI offers investment incentives to companies that meet its criteria in sectors aligned with Thailand’s economic development goals, such as high technology, sustainability, and innovation. Eligible businesses typically include those involved in:

• Manufacturing and industrial production

• Technology and innovation (e.g., digital services, software, and R&D)

• Agriculture and food processing

• Renewable energy and environmental management

• Logistics, transportation, and infrastructure

• Healthcare and medical technology

These sectors are categorized into A and B groups, each with varying levels of benefits depending on the project’s contribution to Thailand’s development.

2. Types of BOI-Promoted Companies

The BOI divides its investment promotion categories into two main types based on the nature and contribution of the business: Group A (with tax incentives) and Group B (without tax incentives).

2.1 Group A: Companies with Tax and Non-Tax Incentives

Group A companies are those engaged in projects that promote technological advancement, innovation, research, and industrial development in Thailand. These businesses typically receive both tax and non-tax incentives.

Examples of Group A activities include:

• Manufacturing of high-technology products (e.g., electronics, automotive parts, machinery)

• Biotechnology and biopharmaceuticals

• Software development and digital platforms

• Research and development (R&D) centers

• Renewable energy and waste management projects

Tax incentives for Group A companies may include:

• Corporate income tax (CIT) exemption for 3 to 8 years (depending on project type)

• 50% reduction in CIT for an additional 5 years after the exemption period

• Exemption of import duties on machinery and raw materials used for production

• Deduction of transportation, electricity, and water supply costs

• Deduction for infrastructure construction or installation costs

Non-tax incentives include:

• 100% foreign ownership (for eligible activities)

• Permission to own land for business operations

• Facilitation of work permits and visas for foreign experts

• Exemption from foreign ownership restrictions under the Foreign Business Act

These incentives make Group A the most beneficial category for foreign investors involved in high-value or strategic industries.

2.2 Group B: Companies with Non-Tax Incentives Only

Group B includes businesses that contribute to Thailand’s economic development but are not heavily technology-driven or capital-intensive. These projects typically receive non-tax incentives but not corporate income tax exemptions.

Examples of Group B activities include:

• Manufacturing of supporting industrial components

• Service providers related to logistics and trading

• Industrial zones or estates development

• Environmental management and related services

Non-tax incentives for Group B companies include:

• Permission to bring in foreign experts and technicians

• Visa and work permit facilitation for foreign employees

• Land ownership rights for business use

• Foreign shareholding allowance in certain cases

Although the tax benefits are limited, Group B companies still gain significant operational advantages, particularly for foreign investors who need legal and administrative support to establish a presence in Thailand.

3. Other Common Company Types Under BOI Promotion

In addition to the Group A and B categories, BOI registration applies to different corporate structures, depending on ownership and investment goals.

3.1 Thai Limited Company with BOI Promotion

A Thai Limited Company is the most common structure for BOI-promoted businesses. It allows both Thai and foreign shareholders, though the BOI may grant 100% foreign ownership depending on the business activity.

Key features include:

• Minimum of two shareholders

• Limited liability for shareholders

• Flexibility in shareholding ratio for foreign investors under BOI privileges

• Eligibility for corporate and operational incentives

This type is ideal for companies aiming for long-term operations, manufacturing, or R&D in Thailand.

3.2 Branch Office with BOI Promotion

A Branch Office is an extension of a foreign company, registered to carry out specific activities in Thailand. Normally, Branch Offices are restricted under the Foreign Business Act (FBA), but with BOI promotion, these restrictions can be lifted.

Advantages:

• Full control by the parent company

• Eligibility for BOI non-tax incentives

• Ability to repatriate profits abroad

• Permission to employ foreign specialists

This structure is suitable for foreign corporations expanding their existing operations or engaging in specialized projects in Thailand.

3.3 Regional Office or Representative Office with BOI Promotion

A Regional or Representative Office typically engages in non-revenue-generating activities such as market research, product sourcing, quality control, and coordination with the parent company.

Normally, these offices cannot earn income in Thailand, but with BOI promotion, they can:

• Enjoy non-tax incentives (e.g., visa facilitation, foreign ownership rights)

• Employ foreign experts under eased immigration processes

• Operate under relaxed restrictions of the FBA

This type is ideal for multinational corporations managing regional operations from Thailand.

4. The BOI Application and Registration Process

Registering under the BOI involves several key steps:

1. Eligibility Assessment:
   Determine whether the business activity is eligible for BOI promotion based on the current list of promoted activities.

2. BOI Application Submission:
   Submit the application form, business plan, and feasibility study to the BOI for evaluation.

3. BOI Review and Interview:
   The BOI will assess the project’s merits, including investment value, technology level, employment, and environmental impact.

4. BOI Approval:
   Once approved, the company receives a BOI Promotion Certificate specifying eligible activities and incentives.

5. Company Registration with DBD:
   Register the company with the Department of Business Development (DBD) to obtain a legal entity status.

6. Post-Approval Compliance:
   The company must report progress, maintain investment levels, and comply with BOI conditions to retain incentives.

5. Key Benefits of Registering a BOI Company

• Up to 8 years of corporate income tax exemption

• 100% foreign ownership for approved activities

• Permission to own land for operations

• Simplified visa and work permit procedures for expatriates

• Exemption from import duties on machinery and raw materials

• Enhanced credibility and ease of doing business in Thailand

These advantages make BOI promotion one of the most attractive investment incentives in Southeast Asia.

Conclusion

Registering a company under the Thailand Board of Investment is a strategic choice for investors aiming to expand in Southeast Asia’s thriving economy. By understanding the types of BOI-promoted companies—from Group A technology-driven enterprises to Group B supporting industries—investors can align their projects with Thailand’s development goals and maximize available incentives.

Whether through a Thai Limited Company, Branch Office, or Representative Office, BOI promotion provides foreign and local investors with a robust legal framework, financial advantages, and long-term stability. With careful planning and compliance, a BOI-promoted company can unlock vast opportunities for growth, innovation, and sustainable investment in Thailand.