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Board of Investment (BOI) Registration of a Company in Thailand

Transcript of the above video:

In this video, we're going to briefly discuss the BOI, Board of Investment, certification of certain companies here in Thailand and the benefits derived there from. BOI was created to essentially encourage foreign investment here in the Kingdom and as a result of the creation of BOI, there are certain privileges that can be attached to a company through BOI certification, tax privileges, immigration privileges in the form of longer issued work permits and visas etcetera associated with BOI.

Basically to encourage foreign investment, the Thai authorities took it upon themselves to go ahead and create this scheme whereby if one brings in a certain foreign investment requirement, and there are certain categories which will sort of depend on the amount of money is to be brought in. But suffice it to say, if one brings in an investment or a group of people for that matter, or a company brings in enough money, an investment of money in Thailand, it can receive BOI approval after an adjudication by the Board of Investment themselves. Once that company is certified, that company can get certain tax advantages such as tax holidays. The company can enjoy the possibility of ownership of certain industrial estates here in Thailand and then there's also one-stop services for purposes of B visa processing with respect to attachment to BOI company of work permits to be issued for long periods of time compared to just sort of regular companies.

But again, there's a minimum investment requirement. There's an adjudicatory phase where the BOI application has to be scrutinized and subsequently approved. You're looking at probably 12 to 14 weeks associated with processing BOI matters.

BOI can be very advantageous for companies here. Depending on what one is trying to do, there may or may not be benefits with BOI and in fact, there may or may not be a scheme under which certain types of business, entities are going to be encouraged to take BOI.

For American citizens, another alternative is the Treaty of Amity which allows a hundred percent ownership by an American citizen or citizens of a company here in Thailand. But with respect to BOI, there are also foreign ownership benefits associated with BOI. But again, there are certain minimum capital requirements to have that capital invested here in order to receive BOI benefit.

So that being said, it's probably a good idea to contact a legal professional with respect to not only registering the underlying company but seeking BOI certification as they are rather a linking process, they're administratively complex and there are accounting issues that have to be maintained in order for the BOI certification to be kept up over the years that it continues to do business here in the Kingdom.

 

So for that reason, contacting a legal professional is probably not a bad idea in connection with BOI certification.