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ResourcesCorporate and Tax AdvisoryThailand Corporate LawHow Is a BOI Company Registered in Thailand?

How Is a BOI Company Registered in Thailand?

Transcript of the above video:

As the title of this video suggests we are going to be discussing the BOI company structure.

What are we talking about with respect to BOI? Well what we mean is the Thailand Board of Investment and as discussed in other videos, the Thai Board of Investment is empowered to provide certain types of enterprises here in the Kingdom certain benefits including tax exemptions, tax holidays, things like Thai work permit exemptions or exemptions from quotas of a certain number of work permits. There is also various benefits that can be gained that will put a BOI company sort of outside the bailiwick of the Foreign Business Act here in Thailand. So BOI provides a number of privileges or it can.

But a question I guess a lot is how can we register a BOI Company? Well the answer to that is that it depends. There are certain circumstances where you can actually seek BOI certification prior to an actual registration of a company or you can go ahead and register a company, seek BOI concurrently or seek BOI after corporate registration. All of this is going to be very, very circumstantially dependent on the facts of a given case. It is going to depend on a client's given needs. Another interesting thing about BOI is a company could have been in existence for a prolonged period of time in operation doing business and subsequently seek certification either for a new corporate activity or for something that it has already been doing or something it wishes to receive BOI privileges on. I have seen circumstances where there has been a corporate activity acquisition in Thailand and a subsequent petition for BOI certification. So while the question is sort of seemingly simple or the answer should seem simple, BOI certification should not be confused with the registration of the company proper, it is simply the certification of an existing enterprise in order to receive certain privileges and benefits. Another thing to keep in mind with respect to BOI,  is there is ongoing compliance that needs to be maintained in order to keep a company's BOI certification going, for lack of a better word, because failure to adhere to the provisions of the BOI Certification  can result in de-certification and that can result in serious penalties with respect to the business, most notably things like reversion to having to operate back under the Foreign Business Act or issues with respect to possible tax liability.

All of these issues are a reason why BOI compliance or maintenance of BOI compliance is important when operating a BOI Company here in the Kingdom.