Foreigners wishing to establish a business operation in Thailand should take full advantage of the government’s Board of Investment (BOI) services.
Availing of their services is a highly effective way to understand exactly what is permissible, how an application can be made, and how to take advantage of the many incentives offered by the board.
Before we explain the BOI application process we will outline some major benefits and services that a foreigner will be given access to:
Increasing competitiveness and investment opportunities:
- An attractive, competitive package of tax incentives are available
- No imposition in terms of foreign equity restrictions for manufacturing activities as well as some service operations
- Gives assistance with visa and work permit applications to ensure a smooth entry into the country and onward renewal of such requirements during the on-going business operation.
- Assist in waiving the current government restrictions on land ownership by foreign entities
- Arrange for any restrictions on foreign currency remittances to Thailand to be eliminated
The BOI can also play a crucial role in supporting business operations during their early days as well as onward expansion. Examples of this are:
- Providing extensive information and expert, accurate, up-to-date advice on the establishment of operations in Thailand
- Arrangement of on-site visits
- Identifying the most appropriate potential suppliers of products and services, sub-contractors and, if there is a requirement, joint-venture partners
- Providing meaningful contacts within key organisations from both the public and private sectors
- Co-ordinating dealings between the country’s foreign business community and public agencies.
BOI application procedure:
The BOI has streamlined its application procedure to ensure swift decisions are made. This effective procedure means that foreign companies can track applications and clearly identify timescales in which approval is given.
Once approval is given they can then begin to implement their project and be assured of BOI assistance where and when necessary.
The guidelines and requirements for the on-line completion of the BOI application form are clearly stated on the organisations website; www.boi.go.th
Amongst the comprehensive information available there is a very clear flow-chart showing the steps from start to finish of any application.
To indicate the effectiveness of decisions made, here are examples of timescales involved once an application has been submitted.
Meeting/presentation: The company submitting the application will contact BOI officials within 10 working days of submission to meet and present their proposals.
The proposal will then be reviewed by the BOI. Dependent upon the value of investment involved the following timescales will be adhered to in terms of making a decision of approval or non-approval:
- Less than 200 million baht – Consideration and decision made by BOI within 40 working days
- Between 200 million and 2,000 million baht – Consideration and decision made by the BOI sub-committee within 60 working days
- More than 2,000 million baht – Consideration and decision made by the BOI sub-committee and then the BOI Board within 90 working days
Note: The amount of investment excludes land costs and working capital.
Confirmation of decision:
The approval or non-approval of the application will be given to the applying company within 7 days from the above timescales.
Once approval is given the company concerned will submit a Promotion Acceptance Form. This can be completed either online via the e-investment portal or in hard-copy format using form: F GA CT 07 within 1 month of approval and acceptance.
Upon receipt and approval of the Promoted Acceptance Form the BOI will issue the official certificate of promotion within 10 working days.
The company concerned will then submit a Company Establishment Form either online via the e-investment portal or in hard-copy format using form: F GA CT 08 within 6 months of promotion acceptance.
Foreign concerns that are serious in terms of beginning a business operation in the Kingdom of Thailand will benefit tremendously from using the BOI services.
Their expertise and local knowledge will ease what is seen as a complex process for any foreign individual or organisation wishing to set up business in another country.
The BOI offer a one-stop shop that gives clear advice and correct information on such important things as:
- The types of admissible businesses
- What incentives are offered
- A dedicated section for visa and work-permit applications
- Assistance and attendance of potential site visits
- Contacts with qualified sub-contractors
- Introduction to potential suppliers, business associates and meaningful members of the private and public business sectors.
Don’t forget the ASEAN angle:
Thailand is extremely well-placed in terms of taking advantage of the ASEAN agreement and the BOI has not been slow in recognising this. They have developed the ASEAN Supporting Industry Database (ASID) on behalf of ASEAN as part of the organisations efforts aimed at increasing awareness of supporting industries, suppliers and companies in the member countries.
This free service is available at www.asidnet.org and is a comprehensive directory of companies from all ASEAN regions providing cost-effective products and services applicable to any specific business.
Such an example of assistance is yet another reason that the BOI application process should be considered by any foreign entity wishing to do business in the Kingdom
The Thailand Board of Investment procedural aspects of applying for BOI privileges are simply seen in detail on the flow chart below.
For details about the Board of Investment process, please contact us for an appointment and we’ll discuss with you in detail all the aspects of the BOI application procedure.