BOI Thailand

Founded in 1966, BOI Thailand, or the Thailand Board of Investment, is a government organization under the Office of the Prime Minister. The Thailand BOI has since served as an important government body supporting both domestic and foreign business investments in Thailand. The BOI’s goals are to make Thailand more competitive and prevent the country from slipping into the “middle-income trap” by promoting steady and balanced economic growth.

What this means for you as a potential entrepreneur is that the BOI provides tax incentives and preferential treatment to businesses in the industries that the government has targeted for development. So, by applying for and acquiring promotion from the Thai BOI, your company can enjoy competitive advantages that will increase your profitability and make it easier for you to do business in Thailand.

If you’re planning to open a business in Thailand, this guide will show you how the BOI can give you early advantages. This page will explain what the BOI does, how it can benefit your business, and how you can apply for BOI promotion in Thailand.

BOI Thailand Services

To support the expansion of and investment in international businesses, the BOI provides a wide range of services to meet the diverse requirements of investors. Here's how they assist:

• Offer guidance and details on investment opportunities, including rules and regulations surrounding BOI investments.
• Connect investors with government and private sector entities to streamline business operations, like setting up a company and applying for work permits.
• Assist in creating industrial connections and finding local suppliers.
• Help in pinpointing potential investors.
• Facilitate the identification and acknowledgment of international experts or researchers in science and technology through the BOI Strategic Talent Center (STC).
• Give advice on investments abroad and conduct training sessions for Thai investors on the subject.

BOI Thailand’s Vision

The Board of Investment (BOI) in Thailand is working hard to bring in investment from other countries. They want to make Thailand's economy stronger by focusing on three big ideas: innovation, competitiveness, and making sure everyone benefits.

They're all about using technology and new ideas to make the economy better, making sure businesses can grow and compete, and taking care of the environment and people while doing it. This plan is designed to make Thailand a great place for investors to put their money, helping to bring in new kinds of businesses and modernize the country's economy.

• Innovation
  Aim for an economy fueled by technology, innovation, and creativity.

• Competition
  Strive for an economy that's competitive, adaptive, and capable of high growth.

• Inclusivity
  Build an economy that prioritizes environmental and social sustainability, opens up opportunities, and reduces inequality.

BOI Thailand Benefits

Thailand gives special perks to businesses that invest in areas like research, technology, and important projects that help the country grow. These perks include breaks on taxes and the ability to hire experts from other countries. If your business is in the right industry and will perform BOI-promoted activities, then you can qualify for these benefits.

The idea is to attract companies that can bring in new technologies and ideas, making Thailand's economy stronger and more innovative. Whether a company gets one perk or many depends on its operations and how it helps Thailand. The Board of Investment examines the activities of each company to decide if they are eligible.

Tax Incentives from the BOI:

• Exemption/reduction of import duties on machinery
• Reduction of import duties for raw or essential materials
• Exemption of import duties on materials imported for R&D purposes
• Exemption of corporate income tax on the net profit and dividends derived from the promoted activity
• A 50 percent reduction of the corporate income tax
• Double deduction from the costs of transportation, electricity, and water supply
• Additional 25 percent deduction on the costs of installation or construction of facilities
• Exemption of import duty on raw or essential materials imported for use in production for export

Non-Tax Incentives from the BOI:

• Permission for foreign nationals to enter the country for the purpose of studying investment opportunities 
• Permission to employ foreign skilled employees and experts
• Permission to own land
• Permission to remit money abroad in a foreign currency

What is the BOI Application Process?

To get started with the Thailand Board of Investment (BOI), you first need to show them your detailed business plan. They're looking for projects that will help Thailand's economy grow. You’ll need to present your plan to the BOI so they can examine it and decide if your project fits its goals.

If they like it, your project gets the green light and some perks. The whole process is designed to make sure that only the projects that really benefit Thailand's economy get approved. So, if you want to apply for BOI benefits, you've got to make sure your project lines up with what Thailand is aiming to achieve.

1. Preparing for the Thailand BOI Application Process
   The first thing you should do is examine the BOI’s criteria for promotion to see if your planned business is eligible for promotion. You can find this information on the BOI’s website or at their physical location.

   This information is dense with a good deal of legal language, so it may be better to go over the BOI’s requirements with your lawyer to ensure you have a good grasp of the information.

2. Submit Application for Investment Promotion
   If you are certain you are eligible for promotion, submit the completed online application with the necessary documents (see below) via the BOI Thailand e-service portal.

3. Scheduling Your Presentation
   Within 10 business days following the application's submission, the BOI office will make contact to arrange a meeting in which you will present your project and undergo an interview with the BOI committee.

4. Presenting Your Project and Evaluation by the BOI
   In this meeting, you will showcase your business idea to the Board and make your case as to why you should receive promotion. Following your presentation, BOI officers will assess your presentation, and provide you with the Board's decision after some time. The time it will take for you to get an answer depends on the investment amount (how much money you are putting into this business and industry) as follows:

   • For investments under 200 million THB, the review for BOI endorsement takes up to 40 working days after a complete application is accepted.
   • For investments under 2 billion THB, a subcommittee's review for BOI approval occurs within 60 working days after a full application is submitted.
   • For investments above 2 billion THB, a subcommittee's evaluation is required, and the consideration time is 90 working days after all the required documents are completely submitted.

5. Notification of Approval
   The BOI will notify you in writing whether your application is successful within 7 days from the resolution certifying date. This notification will detail the conditions, privileges, and benefits awarded. It also includes the form necessary to acquire the BOI certificate.

6. Promotion Acceptance
   You must acknowledge the consideration results within 1 month from the date of resolution notification by submitting your promotion acceptance forms via the online portal.

7. Promotion Certificate Application
   Once you have accepted the promotion, you will need to gather and submit additional paperwork to receive your BOI promotion certificate, which will provide your company with the many benefits mentioned above.

   You must submit your promotion certificate application forms (see below) within 6 months from the submission date of the promotion acceptance forms. This is also typically done through the online portal.

8. Promotion Certificate Issued
   The BOI will issue the operation start-up certificate within 10 working days from the date that you submit the full set of required documents.

What documents do you need for a Thailand BOI application?

Applying for BOI investment promotion certification involves gathering, preparing, and submitting a variety of documents at different stages. It is crucial for you to ensure your Thai company is fully set up within six months after your initial application gets approved by the Thailand BOI so that you have all the required documents. During this time, you must submit the following documents to the Office of the Board of Investment in Thailand:

• Application form for BOI promotion certification
• Company registration certificate
• Memorandum of association
• List of shareholders
• Certification including the registered capital, names, and addresses of the authorized directors along with the registered address of the company
• Investment certificate by the Bank of Thailand or receipts of transfer of funds from different countries
• Technology transfer agreement or contract
• Franchise agreement
• JV contract
• Form that includes all the human resource requirements

The registration form for the certificate is mostly 8-10 pages long and must include the following information:

• The total sum of registered capital of your company and how you plan on using or investing that money.
• Details about your business plan and the machinery or software that you will be using throughout the execution of your project.
• The number of people you will be hiring from Thailand and foreign countries along with their salaries.
• The steps or strategies you will be using for training your Thai employees.
• All the relevant details such as the skills and qualifications of the management team of the company.
• The estimated revenue of your company for the first few years.

This is a lot of things to collect and prepare, but Siam Legal’s corporate law team has extensive experience with this procedure and can assist in making the process faster and smoother.

Later, to apply for an Investment Promotion Certificate from the BOI and enjoy its benefits, you'll need the following documents:

• Promotion Certificate Application Form (F GA CT 08) with complete information
• Document showing the transfer of funds from overseas (in the case of foreign investment)
• Utility and Manpower Requirements Form (F GA CT 13)
• Other evidence specified in the letter notifying the resolution (if any)

Be aware that the BOI officer might ask for additional documents as needed. Applicants must also participate in a presentation and interview to provide more detailed information about their project.