The Thai market offers exciting opportunities, particularly for foreign investors setting up business. Thus, it is important to choose the right business structure to meet local ownership rules and apply for BOI compliance in which each has legal and practical implications. That is because success is not just about having a great idea—it is also about getting the groundwork right.
What It Means to be BOI Compliant
Businesses need to comply with the ongoing legal and procedural obligations in the country through the Thailand Board of Investment. When they abide by this rule, they will be granted promotion privileges.
Initial BOI Reporting and Documentation
After giving the approval, the company must register the business with the Ministry of Commerce. Progress reports must be submitted to the BOI, and an application for a BOI Certificate and provided with any supporting documents.
Project Implementation
You will also need to inject registered capital as committed. At the same time, you will comply with the procurement of equipment, machinery, or technology. Then, you will be able to commence operations within the approved timeframe of the BOI.
Annual and Ongoing Compliance
It is also important that you comply with the following documents to maintain your BOI privileges.
- Submit Annual Operation Reports
- File audited financial statements
- Ensure all business activities will remain within the approved scope
- Properly manage work permits and visas through the BOI One Stop Service
Inspections and Verifications
There will be site visits conducted by the BOI officers to confirm operations are aligned with your approved project.
Major Benefits for Your Business
100% Foreign Ownership
When your business is BOI-promoted, you will be allowed to fully own the company. This is even in sectors that usually require a Thai partner.
Tax Incentives
You can enjoy corporate income tax exemptions for up to 8 years, plus reductions or exemptions on import duties.
Work Permits and Visas
BOI-promoted companies also benefit from streamlined visa and work permit processes, making it easier to attract and hire foreign talent.
Land Ownership Rights
When your company receives a BOI promotion, it gains the right to own land—an important advantage, since foreign companies are generally restricted from owning property in Thailand.
Access to Government Support
This compliance will enable you to gain support in areas like utilities, infrastructure, and business networking via the BOI framework.
Final Thoughts
If you are a foreign investor looking to set up or expand in Thailand, the BOI route will offer unmatched flexibility, tax savings, and legal advantages that the standard company formation does not. You must understand the consequences if your company is non-compliant. This could lead to suspension or revocation of BOI privileges, tax liabilities, and delays in visa or work permit processing.
If you hire Acclime Thailand to guide you through every step of the process, you can launch your business with confidence. They can help you with certain services from incorporation to BOI registration and beyond. All you need to do is contact our experts today, they’ll provide tailored support to help you build your business on solid ground.