Registering a company under the Thailand Board of Investment can offer many privileges and benefits to foreign entrepreneurs. However, the procedure is complicated and requires careful consideration.
BOI-promoted companies enjoy tax exemptions and deductions, as well as non-tax incentives such as permits to bring in workers and own land. Plizz can help you understand these benefits and ensure your company qualifies for them.
Registration Fees
For investors interested in starting a business in Thailand, there are several costs to consider including registration fees, taxes, office space expenses, and other costs associated with licensing. Fortunately, the government offers a variety of tax incentives and other benefits for foreign investments.
Investors are advised to consult with an expert to get a complete understanding of these costs and other factors. A company registration professional can assist in calculating the total cost of establishing a business in Thailand.
In addition to these costs, investors will be responsible for a number of other charges, such as stamp duty and social security contributions. The amount of these charges varies depending on the type of documents and the value of the transaction.
Investors who are planning to register their companies under the BOI will also need to be sure that they are performing eligible activities. A comprehensive research and feasibility study can help identify whether or not a project meets the requirements of the program.
Documents Needed for Registration
The list of documents required for registration varies depending on the type of business. For example, a manufacturing business will have different requirements than a trading business. Similarly, a private company will have different requirements than a public company. The best way to determine what types of documents you will need is to consult with a local law firm.
Once you have determined the type of business you want to set up, you will need to prepare a Memorandum of Association (MoA). This document is an agreement between the shareholders regarding their responsibilities, ownership share and capital investment. It is important that this document includes a detailed description of the company’s objectives and how they will be brought to fruition.
BOI officials will review the MoA to ensure that it meets all of the required standards. If they are satisfied, they will provide you with an extension to submit all of the necessary documents. However, this extension will not be granted more than three times.
Requirements for Shareholders
A foreigner-owned company registered with the BOI can enjoy several benefits, including tax exemptions and privileges for a limited period. However, it is advisable to seek the guidance of local specialists before embarking on this venture as the country’s legislation provides a variety of stipulations pertaining to the types of business activities that can be conducted by foreigners.
For example, a BOI promoted manufacturing firm can only operate in the fields listed in the Investment Promotion Policy (IPP). If your proposed business is not included in the list, you will be advised to register as a Foreign Business License (FBL) holder instead.
A BOI promoted public limited company must have at least 3 promoters and details of all shareholders are made publicly available. At the time of incorporation, all shares must be subscribed and paid up. The total share capital may not be less than THB 1 million. Both common and preferred shares can be issued, but treasury shares are prohibited.
Licensing Requirements
BOI certification offers unique tax and non-tax incentives that companies can’t access without the designation. These include an 8-year exemption from business income tax, a waiver or reduction of import duties, and streamlined procedures for work permits and visas.
Companies registered under the BOI must also follow specific reporting and accounting protocols to ensure compliance with Thai laws. Revenue department officials and BOI inspectors conduct regular inspections to check that companies are following these protocol.
While Thailand has made progress in liberalizing foreign ownership, there are still several industries where it is restricted or subject to special conditions. These restrictions are typically based on national security or other industry-specific concerns. In addition, Thailand has entered into a number of bilateral investment treaties (BITs), which may offer additional protection and benefits for investors.
