How To Set Up a BOI Company in Thailand
When it comes to setting up a company in Thailand as a foreigner, you may want to look into the option of having a BOI Company. Not only does it make it easier for a foreigner to own his company you will also enjoy handy incentives such as major tax waivers, ncrease land ownership in Thailand for foreigners and more. So if you are looking to set up a company in Thailand as a foreigner then you will want to what a BOI company is and how you can set up a BOI company in Thailand.
What is a Board of Investment (BOI) Company?
A BOI (board of investment) company is a able to gain a lot of benefits and incentives, created by Thailand’s principal government organization known as The Board Of Investment (BOI). Established in 1977, the Office of the Board of Investment operates under the Office of the Prime Minister. The BOI is a government body that helps promote direct investment in Thailand through a series of investment policies.
If you were granted a BOI company in Thailand you will have many major advantages. Some of which includes:
- Significant tax waivers
- Multiple work permits for foreigners without the requirements of having 4 staff to 1 work permit
- Quick work permit processing time
- Ability to own land in Thailand as a foreigner
Many of Thailand’s successful business ventures are thanks to the BOI.
The Different Types Of BOI Companies
- Technology and innovation development
- Agriculture and agricultural products
- Mining, ceramics and basic metals
- Light industry
- Metal products, machinery and transport equipment
- Electronic industry and electronic appliances
- Chemicals, paper and plastics
- Services and public utilities
How to Apply for a BOI Company in Thailand?
First and foremost, you will need to check if your business is eligible for BOI status. An example of businesses easily granted BOI listing include:
- Agriculture & Agricultural Products
- Light Industry
- Electronic Industry & Electric Appliances
- Mining, Ceramics & Basic Metals
- Metal Products, Machinery & Transport Equipment
- Chemicals, Paper & Plastics
- Technology & Innovation Development
- Services & Public Utilities
Once you know if your company is eligible for BOI status, you will need to go through two applications. The process to apply for BOI and the process to set up a company. These two applications are handled by different departments. There is a choice to submit the BOI application first, and if/when approved, you can proceed to set up your company.
There are a large variety of privileges for a BOI listed company including permission for foreign investors to own land, permission to operate the company under 100% foreign ownership, exemption for work permit and visa rules, and much more.
The BOI Thailand Application Process
There are 8 specific steps to go through when applying for BOI Thailand. As with all paperwork, the process might seem tedious, but it will be worth it in the long run especially if your company is approved for BOI. Here, we lay out the steps below:
1. Registration of the Investor Account
BOI is a paperless organization, so you will need to go to their website to set-up and register your Investor Account.
2. Prepare Application Form and Presentations
After you have filled out your application form online, you’ll need to attach any presentations to support your company. Such as your Business Plan, Marketing Plan and Investment Plan. If the BOI is satisfied with your application and presentations, they will send you an email to confirm a time to present in front of the board in real time.
3. Presentation to the Board
The Investor will need to give a presentation in person to the BOI. The Investor can either go alone or take their lawyer, but cannot send another company member on their behalf. At the interview and presentation, it is possible for the board to reject your project immediately, however, they cannot approve immediately due to a chain of command. If the BOI needs you to revise any documents and/or presentations, they will inform you in the meeting.
4. Notification of Approval or Rejection
After approximately 30 days from your presentation date, BOI will send you an email confirming whether your application has been approved or rejected.
5. Thailand Company Registration
When you get a notice of approval, then it’s time to set-up your company with at least 3 shareholders. At this time, it’s also possible to open up a company bank account.
6. Registered Capital to the Company’s Bank Account
Once you have opened your company’s bank account, you’ll need to transfer the registered capital (money) to the company’s bank account. The minimum required transfer is 25% of the registered capital.
7. Submit Company’s Documents to BOI
Once all your documents have been scanned and sent through their online system, your BOI Certification will be granted to the Investor within 7-10 days.
8. Pick Up BOI Certificate
The BOI will notify the Investor when the certification is ready. The Investor must go to pick up the certification face-to-face.
Looking to set up a company in Thailand as a foreigner and need some advise as to whether a BOI or a regular company is the best fit for you? Feel free to drop into our office and see us, or schedule an appointment online. We can help walk you through the process and possibly assist setting up your BOI Company in Thailand.