Thailand is one of Southeast Asia’s most attractive investment destinations, offering strategic location, modern infrastructure, and a supportive business environment. To encourage foreign direct investment (FDI), the Thai government has established the Thailand Board of Investment (BOI), an agency that promotes and facilitates investment in priority industries. Registering a company under the BOI provides numerous benefits, including tax incentives, relaxed foreign ownership rules, and streamlined business procedures. This guide explains the importance, procedures, and advantages of registering a company under the BOI in Thailand.
Thailand Board of Investment (BOI)?
The Thailand Board of Investment (BOI) is a government agency operating under the Office of the Prime Minister. Its mission is to promote investment in industries that support the country’s economic growth, innovation, and sustainability. The BOI focuses on key sectors such as technology, manufacturing, renewable energy, healthcare, digital industries, and advanced agriculture.
Companies approved by the BOI enjoy significant incentives and privileges, making it easier and more cost-effective for both Thai and foreign investors to establish and operate businesses in Thailand.
Benefits of BOI Company Registration
Registering a company under the BOI provides numerous attractive benefits for investors, including:
1. Tax Incentives
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Corporate Income Tax (CIT) Exemption: Eligible projects receive CIT exemptions for up to 8 years, depending on the promoted activity.
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Reduction of Import Duties: Exemptions or reductions on import duties for machinery, raw materials, and essential components.
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Exemption of Dividend Tax: Dividends distributed from BOI-promoted profits may be exempt from withholding tax.
2. Non-Tax Incentives
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100% Foreign Ownership: Unlike regular businesses in Thailand, BOI companies in promoted sectors can be 100% foreign-owned without requiring a Thai partner.
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Work Permit and Visa Assistance: BOI facilitates long-term visas and work permits for foreign executives and specialists.
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Land Ownership Rights: Foreign-owned companies under BOI approval can own land for business operations, which is normally restricted under Thai law.
3. Streamlined Business Operations
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Fast-tracked business licensing and approvals.
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Simplified customs procedures.
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Access to BOI’s One-Stop Service Center, which supports investors with various government processes.
Who Can Apply for BOI Promotion?
BOI incentives are available to both Thai and foreign investors. However, not all types of businesses are eligible. BOI promotes investment in industries considered crucial to Thailand’s economic development.
Some of the promoted industries include:
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High-tech manufacturing (electronics, automotive, aerospace).
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Biotechnology and medical devices.
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Information technology and digital industries.
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Renewable energy and environmental management.
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Agriculture and food processing.
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Tourism development and healthcare services.
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Research and development (R&D) activities.
Businesses that simply engage in trading, retail, or activities with low value-added may not qualify.
Steps to Register a BOI Company in Thailand
1. Feasibility Study and Business Plan Preparation
Before applying, investors should carefully study the BOI’s current promotional activities list and assess if their business qualifies. Preparing a comprehensive business plan is crucial, as it must demonstrate:
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Financial viability.
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Technological advancement.
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Contribution to local employment and knowledge transfer.
2. BOI Application Submission
Investors must submit an application to the BOI, detailing:
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Business objectives.
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Investment capital.
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Project implementation plan.
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Expected benefits to the Thai economy.
Applications are submitted online through the BOI’s Investment Promotion System (IPOL).
3. BOI Interview and Clarifications
After the application submission, the BOI may schedule an interview or meeting to discuss the business proposal. Applicants should be prepared to explain:
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The technology used in their operations.
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Employment numbers and training plans.
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Environmental considerations.
4. BOI Decision and Approval
Once satisfied, the BOI committee will approve or reject the application. The approval letter will outline the incentives granted, conditions, and implementation timeline. The approval process typically takes between 40 to 90 working days.
5. Company Registration with the Department of Business Development (DBD)
After BOI approval, investors must register their company with the Ministry of Commerce’s Department of Business Development (DBD). This involves:
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Registering the company name.
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Drafting the company’s Articles of Association.
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Registering the company as a limited company.
6. BOI Certificate Issuance
After completing the business registration, investors must submit company documents to the BOI, which will then issue a BOI Certificate confirming the company’s promotion privileges.
7. Post-Approval Compliance
Companies must comply with reporting requirements, including:
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Regular performance reports to the BOI.
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Compliance with investment timelines.
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Employment and training commitments.
Failure to comply may result in revocation of BOI privileges.
Investment Capital Requirements
While the BOI does not impose a strict minimum capital requirement, approved projects must demonstrate sufficient financial resources to operate effectively. Certain activities may require a minimum capital investment of 1 million Baht or higher, especially for foreign-owned businesses under Thailand’s Foreign Business Act (FBA).
Legal and Practical Considerations
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Professional Guidance: Due to the complexity of BOI applications, it is advisable to engage experienced legal or consulting firms specializing in BOI matters.
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Time Frame: The entire process, from BOI application to company registration and commencement of operations, can take several months.
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Office Space: BOI companies must operate from legitimate office premises. Virtual offices are not acceptable.
Why Choose BOI for Company Registration?
Registering a company under the BOI is ideal for:
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Foreign investors who want 100% ownership in Thailand.
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Companies operating in high-growth or innovative industries.
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Businesses seeking tax reductions and legal privileges to enhance competitiveness.
BOI registration opens the door to Thailand’s dynamic market, offering not just legal advantages but also operational efficiencies and long-term business opportunities.
Conclusion
The Thailand Board of Investment offers a highly supportive environment for both local and foreign investors through its investment promotion policies. Registering a company under the BOI allows businesses to enjoy tax incentives, relaxed foreign ownership rules, and streamlined business processes. While the application process involves careful preparation and compliance, the benefits of BOI promotion can significantly enhance the profitability and sustainability of your business in Thailand. For businesses committed to innovation, technology, and contributing to Thailand’s economic development, BOI registration is a smart and rewarding option.
