BOI Company Registration Thailand

Foreigners can easily start a company in Thailand because of its resource-heavy environment and business-friendly policies. But, foreigners are restricted from starting a company in certain categories and owning 100% of the company.

A BOI promotion is required to tap into those restricted categories, own 100% of the company, and enjoy other incentives. It can be challenging for new entrepreneurs to complete the BOI company registration Thailand on their own. S & F Consulting Firm wants to make the process easy for you. This article covers everything you need to register a company for BOI promotion.

What Is a BOI Company Registration Thailand?

For those who are wondering about the BOI meaning, the Board of Investment of Thailand is a government body that promotes direct investment in Thailand. It offers a range of incentives to encourage businesses in certain categories to improve Thailand’s economy.

Foreign investors can start companies in specific categories after BOI registration that are otherwise restricted. Registering a company in Thailand is one of the BOI Thailand requirements.

After starting the company, the owners or promoters must go through an 8-step registration process to obtain BOI approval Thailand.

Eligible Industries for Thailand Board of Investment Registration

Only companies in certain industries are eligible for BOI application Thailand and here is a short list of those industries.

BCG Industries: Under Investment Promotion Division 1

• Agricultural and food industries

• Biotechnology industry

• Medical industry

Advance Manufacturing Industries: Under Investment Promotion Division 2

• Machine and automation system industries

• Automotive industry

• Space and aerospace industry

• Defense industry

• Electrical appliances and electronic industry

Basic and Supporting Industries: Under Investment Promotion Division 3

• Mineral industry

• Materials industry

• Steels and irons industries

• Chemical, petrochemical, and plastic industries

• Public utilities and environment

• Real estate development for industrial use

Digital, Creative Industries and High Value Service: Under Investment Promotion Division 4

• Digital industry

• Smart city development

• Light industries

• Film industry professional services

• Tourism industry

• Logistics industry

Check out the comprehensive list of eligible industries here.

Criteria for BOI License Thailand

Thai BOI has the following criteria for BOI investment promotion to maintain a competitive environment for businesses.

• The value-added of a project must be higher than 20% of the revenue. In projects related to agriculture, electronic products, etc., the value-added must be at least 10% of revenue.

• Modern production processes and new machinery must be used.

• If the investment capital of a project is 10 million THB or higher, it must obtain ISO 9000 or ISO 14000 certification within 2 years from the commencement of operation.

• The minimum requirement for investment capital is 1 million THB.

• All projects must follow the BOI Thailand guidelines to protect environmental quality and reduce environmental impact.

• For new projects, the debt-to-equity ratio must remain below 3 to 1.

• If the investment value of a project is over 2,000 million THB, the feasibility study of the project will require additional details.

Besides these criteria, BOI may have other criteria in specific categories.

BOI Company Registration Thailand Online: Step-By-Step Process

Once your company is legally registered, go through the following steps to obtain the BOI certificate of registration.

Step 1: Do a Feasibility Study

A feasibility study is a process of assessing the critical aspects of your project. It helps you understand the practicality of the proposed plan. BOI Thai analyzes the study to gain valuable insights into the business and only issues a promotion certificate if the project is satisfactory.

For new entrepreneurs, doing a feasibility study of a company or project can be challenging. It requires collecting a vast amount of data and analyzing it to find the probability of the project's success.

This type of complex process is best handled by seasoned professionals, especially those who are familiar with the business landscape in Thailand.

Process

• Step 1: Hire a firm to perform the feasibility study. S & F Consulting Firm is experienced in doing feasibility studies for new businesses.

• Step 2: Provide all the necessary information and the firm will come up with a suitable feasibility report.

Step 2: Apply for BOI Company Thailand Registration

In this step, company owners or their representatives must apply for company registration with the BOI. Remember, this isn’t the application for a promotion certificate. We will talk about that step later.

Once the feasibility report is ready, you can apply for the BOI investment promotion certificate by completing the steps below.

Required Documents

• Filled BOI application Thailand form or F GA CT 08 form

• Memorandum of association

• Certificate of business registration

• Certificate of the Office of the Company Limited and Partnership Registration

• List of shareholders and their nationalities

• Document showing the transfer of funds from overseas (for foreign investments)

• Joint venture contract, licensing agreement, or technical assistance contract (if applicable)

• Filled utility and manpower requirements form or F GA CT 13 form

• Copy of audited financial statement (if any)

• History and details of business

• Documents showing the production process and main machinery (if applicable)

Process

• Step 1: Visit the e-Investment Promotion portal and register for an account.

• Step 2: Log into the account and click on the application form.

• Step 3: Fill out the form with accurate information.

• Step 4: Upload supporting documents as required.

• Step 5: If the application is accurate, BOI will notify you about the next steps.

Step 3: Present Your Project to the BOI

Within 10 days of submitting your application, BOI officials will contact you or your representative to schedule a formal presentation. During this session, you must present the project to the BOI committee in detail.

The presentation must contain information about your business, industry, proposed activities, production processes (if any), and other crucial factors. It will help BOI officials understand if your project meets the promotion criteria set by the board and the government.

At S & F Consulting Firm, we have professionals experienced in making such presentations. Also, our team can assist you during the session to increase the chance of approval from the Board of Investment Thailand.

Process

• Step 1: Prepare an in-depth presentation about all aspects of the project.

• Step 2: Appear before the BOI committee to present your project according to the schedule.

• Step 3: Present your project to the BOI and explain why your business should receive BOI promotion.

Step 4: Project Evaluation

After the presentation, BOI in Thailand will evaluate whether the project is eligible for the promotion program. Key evaluation factors include the business’s proposed activities, industry, impact on the local economy, risk to national security, and more. The required time to evaluate the project is as follows.

• For an investment value of less than 200 million THB: 40 working days

• For an investment value of 200-2,000 million THB: 60 working days

• For an investment value of more than 2,000 million THB: 90 working days

Step 5: Receive the Resolution Notification

Once the BOI decides to accept your promotion application, they will notify you about the resolution. The process may take a maximum of 7 working days.

Step 6: Accept the Promotion

After BOI offers you the promotion, you must accept the resolution within 1 month from the date of resolution notification. Otherwise, the consideration for promotion will be canceled.

Process

• Step 1: Visit the e-Investment Promotion portal and log into your account.

• Step 2: Fill up the Promotion Acceptance Form or F GA CT 07 form and submit it to the BOI.

Step 7: Submit the Promotion Certificate Issuance Application

You must submit an application to receive the promotion certificate within six months of submitting the acceptance form.

Process

• Step 1: Log into your e-Investment Promotion account with the same credentials.

• Step 2: Fill up the Accompanying Application for Promotion Certificate form or F GA CT 08 form and submit it with supporting documents.

Step 8: Collect the Promotion Certificate

If the application is complete with all the necessary documents, BOI will issue a promotion certificate within 10 working days from the submission.

Conditions After Receiving Promotion Certificate

A registered BOI company must comply with the following regulations (as required).

1. Any machinery and equipment targeted to tax incentives must be imported within 30 months of receiving the certificate of registration.

2. The company must construct its factory and install the imported equipment to start production within 36 months.

3. If the company fails to meet the above-mentioned deadline for over two months, it must notify the BOI in writing.

4. Relocation, transfer, sale, lease, or mortgage of any machinery imported under tax exemptions or reductions requires written permission from the BOI.

How to Benefit from BOI Investment Promotion?

After you obtain the promotion certificate, you must take the following actions to enjoy BOI privilege in Thailand.

Incentives for BOI Registered Companies in Thailand

BOI Thailand benefits include tax and non-tax incentives.

Tax Incentives

• Exemption of import duties on machinery

• Reduction of import duties for raw or essential materials

• Exemption of import duties on material imported for R&D purposes

• Exemption of corporate income tax on the net profit and dividends derived from the promoted activity

• A 50% reduction of the corporate income tax

• Double reduction from the costs of transportation, electricity, and water supply

• Additional 25% deduction of the cost of installation or construction of facilities

Non-tax Incentives

• Permits for foreign nationals to enter Thailand to study investment opportunities

• Permit to bring skilled workers and experts into Thailand to work in promoted activities

• Permit to own land

• Permit to send remittance abroad in foreign currency

Besides these incentives, BOI-promoted companies in Thailand can enjoy other privileges. The scope of BOI privilege Thailand depends on their industries, activities, operational areas, and other factors.

Frequently Asked Questions

Q: Do all businesses must register with the BOI?

Not at all. Businesses that want to tap into industries restricted by the Thai authority need to register with the BOI. Non-registered businesses can perform their operations in allowed categories as usual.

Q: Is it necessary to visit the BOI office to submit the registration application?

No. BOI has online portals for every step of the registration process. Applicants can submit the application forms and necessary documents online. Alternatively, they can provide everything to their representative law firms who will handle the submission.

Q: Can BOI companies have 100% foreign ownership?

Yes. Obtaining the certificate of registration from the BOI allows companies to have 100% foreign ownership.