Registering a company under the Thailand Board of Investment offers a variety of benefits. However, it is important to understand the requirements and limitations of BOI promotion before applying.
The process is complicated and involves presenting a project to BOI officers. The officers often ask for complementary information and make sure the numbers make sense.
Requirements
In order to register a company under the Thailand Board of Investment, you must meet certain requirements. For example, you must prepare a Memorandum of Association and Articles of Association. You must also deposit the required registered capital in a bank account. Additionally, you must hold a statutory meeting to elect the directors and shareholders of the company.
Once your application is approved, the Department of Business Development will issue a certificate of registration for your company. You must also register for taxes with the Revenue Department. Depending on your business activities, you may need to register for additional licenses or permits. You must also pay Social Security, Withholding Tax and Value Added Tax.
Depending on your industry, you may be eligible for tax incentives from the government. In addition, you will be able to secure work visas for foreign employees. Moreover, you will be able to import machinery with reduced or exemption duty rates.
Documents
As part of the process of applying for BOI promotion, a company must submit various documents. These may include the company’s business plan, project analysis, and proposal. The company must also show proof that it will provide the required amount of registered capital. The company must also prepare for the interview with the BOI.
The interview process can vary, depending on the company’s business category and investment value. Foreign companies are usually interviewed in person, while local businesses are typically questioned by telephone or via video conference.
Once the company has been approved for BOI privilege, it must register with the Office of the Board of Investment and obtain a Foreign Business License. The company can then commence operations. The company may also receive tax benefits and other incentives, including more flexible visa regulations for its key executives and employees. Foreign investors can benefit from these incentives by establishing a BOI company before starting their operations in Thailand.
Interviews
The first interview is a short meeting with the BOI representative in charge of your business. This is a chance for you to clarify any questions the representative may have about your forms and project. You will also have to present your company’s products or services. The interview usually lasts about 20 minutes and is conducted in the BOI’s Chamchuri Square office.
The second interview, if necessary, takes longer. During this time, the BOI officer will ask you detailed information about your project and the finances behind it. The questions will mostly focus on how your project benefits Thailand and its economy.
Once your application is approved, you’ll receive various tax and non-tax incentives. These include exemptions of corporate income tax for up to eight years and reduced import duties on raw materials. In addition, you can hire foreign workers without having to meet a four-to-one ratio of Thai employees and you can own land within the BOI priority sectors.
Taxes
The BOI has the power to grant both fiscal and non-fiscal incentives for businesses that engage in certain activities. It offers tax and tariff reductions, easing foreign equity restrictions on manufacturing activities and services, and waiving the requirement for foreign freehold land ownership by foreign entities. These incentives are categorized into groups based on the level of importance.
All proposed projects must develop competitiveness and be in line with the BOI promotion policy. Additionally, a company must derive at least 20% of its revenue from the targeted industry and use modern production processes.
In addition to tax exemptions, BOI companies can also benefit from other advantages, such as reduced requirements for hiring foreign workers and access to local talent pools. However, these benefits can vary depending on the specific company and its investment amount. A business feasibility study is an essential step in assessing the viability of a company’s BOI application. It will help you understand the current state of Thailand’s economy and identify whether or not your business is eligible for a BOI incentive program.
