Registering a company under the Thailand Board of Investment is an excellent option for foreign companies looking to set up in strategic sectors. It allows them to avoid restrictions under the Foreign Business Act and offers tax incentives such as income tax exemptions for a period of time.
However, the process is long and tedious and requires submitting many business documents. Therefore, contacting legal and tax professionals is advised.
Business Feasibility Study
The Thailand Board of Investment (BOI) assists foreign companies to perform activities that are beneficial to the Kingdom, and it offers tax and non-tax incentives for eligible business projects. However, before you register your company under the BOI, make sure that you conduct a business feasibility study to determine whether your proposed project is suitable.
The BOI will not grant a promotion certificate if the project does not meet certain criteria, including focusing on a new technology, adding value to the economy, and bringing in employment opportunities. The feasibility study must also address stumbling blocks that may deter the company from proceeding with its business project.
Several laws and regulations establish restrictions on foreign ownership of businesses in certain sectors. These include List 2 business activities, which encompasses national safety or security; the production and distribution of firearms and armaments; trading Thai antiques or art objects; and mining and timber processing for the production of furniture and utensils. Foreign majority-owned limited companies can engage in these restricted activities only if the BOI grants them a special permission or exemption under the FBA.
Setting up a BOI Company is undoubtedly one of the most convenient ways for foreigners to set up and own their business in Thailand. It provides a range of handy incentives such as corporate income tax exemptions for a fixed period, ncreased land ownership in Thailand for foreigners and more.
The application process can be time consuming as it involves filling out numerous forms and submitting them to the BOI. It is important to have a consultant that can help you with the entire process to avoid any mistakes and delays.
After submitting the application, the BOI will then notify you of their decision. They will also provide you with a list of requirements that must be met before they can grant your company with their promotion certificate. Some of these requirements include proving that you have invested a certain amount of money into your business, meeting specific criteria for the business category and transferring knowledge to Thai employees.
BOI promotes companies with a wide range of tax and non-tax incentives. Tax incentives include exemption of corporate income tax for a certain period, deductions on transportation, electricity and project infrastructure installation costs.
Non-tax benefits include a simplified and faster process for obtaining work permits and visas for key executives and employees. In addition, a BOI-promoted company may be exempt from a requirement to employ four Thai staff for every foreign employee.
BOI promotion offers many advantages to investors, but the process can be complex. It is important to obtain the help of legal and business professionals to ensure that your company meets all the requirements. At Juslaws, our team of experts can advise you on how to obtain a BOI promotion certificate and get the most out of your investment in Thailand. To start the process, schedule a free consultation with us. We can speak with you in person or via video conferencing software.
A foreign investor who wishes to register a company in Thailand needs to deposit the needed minimum share capital and convene a statutory meeting in accordance with the Articles of Association. Then, the company must be registered for tax purposes and may require other sector-specific licenses from the relevant authorities.
The Company must prepare its financial statement and file it with the Business Information Service Office (BIO) within 30 days after the end of its fiscal year. In case of a delay, the company can request for an extension with a letter from the Board of Investment, but not more than three times.
Companies registered under the BOI can enjoy a wide range of benefits and incentives, including tax breaks and work permit facilitation. To learn more about how you can set up a BOI firm in Thailand, get in touch with one of our consultants today. They will guide you through the entire process of getting your company registered with the BOI.