Business in Thailand: a Guide to Obtaining BOI Promotion

Thailand offers a wealth of opportunities for foreign investors, thanks in large part to the Board of Investment (BOI) promotions. These promotions provide a range of benefits designed to make Thailand a more attractive destination for businesses. At Siam Trade Development, we specialize in helping entrepreneurs and businesses navigate the BOI promotion process. Whether you are still in the planning stages or ready to take the plunge, we can guide you through the entire process, ensuring you take full advantage of the benefits available.

What is BOI Promotion?

The BOI is a government agency aimed at encouraging foreign investment in Thailand. By offering a variety of incentives, the BOI seeks to attract businesses that can contribute to the country’s economic growth. These incentives include tax exemptions, reduced import duties, and the ability to own land, among others. A significant advantage of securing a BOI promotion is the Smart Visa program, which allows for a stay of 2 to 4 years without the need for a work permit.

Pre-Company Setup: Starting with a Business Plan

One of the unique aspects of BOI promotion is that it can be obtained before you even set up your company. This forward-thinking approach allows you to base your application on a well-thought-out business plan, budget, and project proposal. Here’s how to get started:

Step 1: Feasibility Evaluation

At Siam Trade Development, our workflow begins with a comprehensive feasibility evaluation. For a minimal charge, we assess the viability of your business plan and project. This step is crucial as it determines whether your proposal aligns with the BOI’s criteria and stands a good chance of approval.

Step 2: Detailed Application Process

If the feasibility study results are positive, we proceed with the full application process, which typically takes about 3 to 4 months. This involves preparing detailed documentation, including financial projections, market analysis, and a thorough business plan.

Step 3: Submission and Follow-Up

Once your application is ready, we submit it to the BOI and handle all subsequent communications. We ensure that any additional information requested by the BOI is promptly provided, facilitating a smooth approval process.

Step 4: Post-Approval Implementation

Upon receiving BOI promotion, you have six months to start your project. This period allows ample time to finalize your company setup, secure necessary resources, and begin operations.

Advantages of BOI Promotion

Securing BOI promotion offers a host of benefits that can significantly enhance your business operations in Thailand. Here are some key advantages:

Tax Incentives

• Corporate Income Tax Exemption: Enjoy up to 8 years of exemption from corporate income tax, depending on the nature of your business.
• Double Deduction of Transportation, Electricity, and Water Costs: These expenses can be deducted twice when calculating your taxable income.
• Deduction of Installation and Construction Costs: Receive additional deductions for infrastructure-related expenses.

Import Duty Benefits

• Exemption on Machinery: Import machinery without paying import duties, reducing initial setup costs.
• Raw Materials for Export Production: Raw materials used in the production of export goods are also exempt from import duties.

Non-Tax Benefits

• Land Ownership Rights: Unlike many foreign investors, those with BOI promotion can own land for their business operations.
• Ease of Visa and Work Permits: The Smart Visa program allows investors, executives, and skilled workers to stay in Thailand for 2 to 4 years without the need for a work permit, simplifying long-term residence and employment.

Enhanced Business Opportunities

• Access to Government Support: Businesses with BOI promotion are often better positioned to receive support from various government agencies.
• Improved Credibility: BOI promotion signals to partners and clients that your business meets high standards of operation and sustainability, enhancing your reputation and credibility in the market.

Frequently Asked Questions

1. Do I need a lawyer to get BOI promotion?

No, BOI promotion is not about a legal process; it’s a business project that is more appropriate to be left to a business expert. While legal considerations are involved, the focus is on demonstrating the feasibility and potential economic contribution of your business. A business expert can provide the necessary guidance to ensure your application is robust and meets BOI criteria.

2. What type of businesses are eligible for BOI promotion?

Businesses that contribute to the development and modernization of Thailand’s economy are typically eligible. This includes industries such as manufacturing, technology, agriculture, and services. Each sector has specific criteria that must be met, which a business expert can help you navigate.

3. How long does the BOI promotion process take?

The entire process typically takes 3 to 4 months from application to approval. This timeline includes the initial feasibility study, preparation of the application, submission, and follow-up with the BOI.

4. Can I apply for BOI promotion before setting up my company?

Yes, you can apply for BOI promotion based on your business plan and project proposal. This allows you to secure BOI incentives before fully establishing your business, providing a significant advantage in terms of planning and resource allocation.

5. What happens if my application is rejected?

If your application is rejected, you will receive feedback from the BOI detailing the reasons. This feedback is invaluable for making necessary adjustments and reapplying. Our team can assist in revising your proposal to better align with BOI requirements.

6. What are the ongoing requirements after obtaining BOI promotion?

After obtaining BOI promotion, you must adhere to specific reporting and operational guidelines set by the BOI. This includes regular progress reports and compliance with the terms of the promotion. Our team can provide ongoing support to ensure you remain in good standing with the BOI.

Conclusion

Obtaining BOI promotion is a strategic move for businesses looking to establish or expand in Thailand. The process, though comprehensive, is streamlined by expert guidance and support. At Siam Trade Development, we are committed to helping you navigate this journey, from initial feasibility studies to full application and post-approval support. Contact us today to learn how we can assist you in unlocking the numerous benefits of BOI promotion and setting your business on the path to success in Thailand.