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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 kinds of companies here in Thailand and the benefits derived therefrom. BOI was created in an effort 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 notably 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 go and create this scheme whereby if one brings in a certain minimum for investment requirement and there are certain categories which will sort of depend on the amount of money that needs to be brought in but suffice it to say, if one brings in enough money invest network a group of people for that matter or a company brings in enough money and invest enough money in Thailand and can receive BOI approval after adjudication by the Board of Investment itself. Once that company is certified, that company can get certain tax advantages such as tax holidays. The company can enjoy the possibility of like owning, having ownership of certain industrial estates here in Thailand. And then there's also one stop services for purposes of BOI, B visa processing with respect to the attachment to BOI company. Work permits can be issued for long periods of time compared to just sort of “regular companies” but again there is there is 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 12-14 weeks associated with processing BOI matters. BOI can be very advantageous for individuals or companies here. Depending on what one is trying to do, there may or may not be benefit 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 one hundred percent foreign ownership by 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 in the Kingdom in order to receive BOI benefit.

So that being said, it's probably good idea to contact a professional with respect to not only registering the underlying company the seeking BOI certification as they are a rather lengthy process. They’re administratively complex and then there are accounting issues that have to be maintained in order for the BOI certification to be kept up over the over the years that it continues to do business here in the kingdom. So without raising contacting legal in tax professionals is probably not a bad idea in connection with BOI certification.