A BOI company registration is a good choice if you are looking to start a business from Thailand. Numerous benefits can be gained through the creation of this type of company. Learn how to register an BOI Thai company and what the procedure involves. You will also be able to learn about the process for applying and the Target industries.
Benefits of registering an BOI business in Thailand
Numerous incentives are offered to companies who sign up as BOIs. Over the first five years, the taxation of business activity is reduced by 70 percent. Companies that are located in the key investment zones of the BOI are exempt from the import duty on raw materials. In addition, businesses can be exempt from the cost of water, electricity, transportation and infrastructure installation costs. Some companies may also enjoy non-tax privileges such as hiring foreign workers without the need to hire four Thai employees. Companies that are BOIs can also benefit from 100% foreign ownership and expedited visa processing.
A BOI company must also possess a certain amount capital. This amount is called the registered capital. To register a business, it must have at least THB 250.000 of capital authorized. In addition, the company has to pay fees to register with the government.
Application process
Complete the necessary application forms to establish the process of establishing a BOI company in Thailand . These forms can be obtained at the BOI headquarters or through electronic investment platforms. They are eight to ten pages long and contain many questions related to the nature of the company and its clients, investors, and shareholders. After the form is completed, it must be submitted to the BOI along with the necessary documentation and fees.
Once you have received the required documentation, the next step is to apply for the required permits and licenses. Within 60 days of incorporating for foreign-owned companies, they must apply for a Foreign Business License in Thailand. It must also be registered for VAT within 30 calendar days of annual earnings that exceed 1.2 million THB.
Accounting requirements
There are certain accounting requirements you have to meet if you intend to open an BOI business in Thailand. First your investment capital must not exceed 1 million Baht. This can be in physical assets, cash, or any combination of these. Avoid using production costs, land, payroll budgets or other assets for investment capital.
Another condition is that your business adds at least 10 percent value to the product you sell. For instance, if you sell coconuts then you must add 10% value to the product. Also, you must pay a minimum of 1.5 million baht annually to your IT personnel. For manufacturers, it is essential to receive approval from the appropriate government agencies for your machinery and processes.
Target industries
BOI company Thailand offers incentives to industries that are competitive in the region. In order to draw investors, BOI has developed a special tax incentive program for the development of specific industries. Foreign companies that work in the designated districts of Thailand are eligible to enjoy a 17% personal income rate. This is among the lowest rates in the ASEAN region. The incentive package also includes tax holidays of up to 8 years, and five years of tax reduction. The government provides a one-stop service center for foreign investors. It facilitates the process of applying by providing relevant information and permits. In addition the Board of Investment has prepared special investment incentives for investors in the Eastern Special Development Zone, which has been approved in principle and promoted by the government.
BOI has approved measures to boost investment in targeted industries, and has also expanded its program to promote digital technology. The new measures are intended to encourage foreign investment and assist Thailand increase its industrial competitiveness and overcome its resource shortages and seek out new business opportunities. Thailand’s overseas investments are lower than other countries in the region. In the list of initiatives approved by the BOI, one of the most significant is a 50% corporate income tax exemption for five years on projects that involve the latest digital technologies. However, to benefit from this incentive, a project must invest 1 billion baht in the first 12 months following its approval. This tax incentive is valid for a period of 30 days starting on 4th January 2021.
