How to Apply for BOI Promotion in Thailand

For foreign investors looking to start a business in Thailand, applying for Board of Investment (BOI) promotion can significantly streamline the process and provide numerous benefits, including tax incentives, duty exemptions, and, importantly, the possibility of 100% foreign ownership. However, navigating the application process can be complex, requiring a clear understanding of the eligibility criteria and the procedural steps. In this post, we’ll walk you through the key aspects of how to apply for BOI promotion in Thailand.

Understand the BOI Promotion Scheme

The Board of Investment (BOI) is Thailand’s primary government agency responsible for promoting investments in sectors that contribute to the country’s economic growth. The BOI offers various benefits to investors who meet the criteria for promotion, including:

• Tax incentives: Exemptions or reductions in corporate income tax for a specified period.
• Customs duty exemptions: On machinery and raw materials used for export-oriented businesses.
• 100% foreign ownership: In specific sectors that are typically restricted under the Foreign Business Act (FBA), such as advanced technology, manufacturing, and R&D.
• Fast-track work permits: For foreign employees, and other streamlined procedures for setting up businesses.

To qualify for these incentives, businesses must be engaged in activities that support Thailand’s economic goals, such as innovation, technology transfer, or high-value industries. These sectors are listed in the BOI’s promoted activities list.

Check Eligibility

Before proceeding with the application, ensure that your business activity is eligible for BOI promotion. The BOI provides a comprehensive list of promoted sectors under different categories, such as:

• Manufacturing and industrial businesses
• Research and development (R&D)
• High-tech and digital innovation
• Infrastructure and energy projects
• Export-oriented businesses

>> For more information please consider checking our page on BOI Registration <<

If your business falls under one of these categories, it may be eligible for BOI incentives. However, businesses that involve mass media, certain financial services, or land ownership may still face restrictions even if promoted by the BOI. It’s important to carefully review the BOI’s guidelines and consult with a legal advisor to determine eligibility.

Prepare Required Documents

The application for BOI promotion requires several supporting documents. These documents are crucial to demonstrate the nature of the business and its alignment with Thailand’s economic development goals. Key documents typically include:

• Business Plan: A comprehensive plan detailing the business objectives, market research, financial projections, and how the business aligns with Thailand’s development goals.
• Company Registration Documents: The documents may include the company’s Articles of Association, a list of shareholders, and proof of registration with the Department of Business Development (DBD).
• Financial Statements: For existing businesses, you will need to provide audited financial statements for the past few years.
• Project Description: Detailed information about the business activities, such as the product or service offered, the production process, target markets, and employment creation.
• Investment Value: A breakdown of the planned capital investment, including machinery, equipment, land, and facilities.

You need to make sure that all documents are accurate and well-prepared, as the BOI review process is rigorous, and incomplete or incorrect submissions could result in delays.

Submit Your Application

Once the necessary documents are prepared, the next step is to submit your BOI application. The application is usually submitted through the BOI’s online portal or in person at their office in Bangkok. The submission should include all required documentation and a cover letter detailing the business’s objectives and why it qualifies for BOI promotion.

It’s important to note that the BOI reviews applications on a case-by-case basis. Therefore, it may take several weeks or even months for the agency to process your application, depending on the complexity of your business and the volume of applications being processed at the time.

BOI Review and Site Visit

After submission, the BOI will conduct an initial review of your application. This involves evaluating the alignment of your business with Thailand’s strategic economic sectors and assessing the projected economic benefits. In some cases, the BOI may request additional information or clarifications.

If the initial review is successful, the BOI may conduct a site visit to inspect your proposed business location, especially for manufacturing or infrastructure projects. This is part of their due diligence process to ensure that the project is feasible and complies with regulations.

BOI Approval and Issuance of Promotion Certificate

If the BOI approves your application, you will receive a BOI Promotion Certificate. This certificate confirms that your business is officially eligible for the incentives provided under the promotion scheme. Upon receipt of the certificate, you will be able to:

• Enjoy the benefits: Such as tax exemptions, import duty reductions, and foreign ownership rights (if applicable).
• Set up your business: With expedited processes for work permits, visa applications, and other administrative approvals.

It’s important to note that the BOI may impose specific conditions on your business, such as meeting certain employment targets, investing a minimum amount of capital, or adhering to particular environmental standards. Make sure to carefully review and comply with these conditions to maintain your BOI benefits.

Ongoing Compliance and Reporting

Once your business is granted BOI promotion, ongoing compliance is essential. The BOI may require periodic reports on the progress of your investment, including financial performance, employment generation, and adherence to the business plan. Failure to comply with these requirements could result in the suspension or withdrawal of BOI privileges.

How We Can Help

Navigating the BOI promotion application process can be complex and time-consuming, but our team of experts is here to guide you every step of the way. At Skyinterlegal, we specialize in helping foreign investors understand the requirements, prepare the necessary documentation, and ensure that your application aligns with Thailand’s economic development goals.

Our services include:

• Eligibility Assessment: We will evaluate whether your business qualifies for BOI promotion based on your industry and business model.
• Document Preparation: We can assist in preparing and reviewing all necessary documents, including business plans, financial projections, and company registration paperwork, ensuring that your application is complete and accurate.
• Application Submission: We handle the submission of your BOI application and ensure that it is properly filed with the Board of Investment, saving you time and effort.
• BOI Liaison: We will serve as your point of contact with the BOI, helping you communicate effectively and address any queries or additional requirements during the review process.
• Ongoing Compliance Support: Once you receive BOI promotion, we can assist with ongoing compliance, ensuring that you meet reporting and operational requirements to maintain your privileges.

Why Choose Us?

Choosing the right legal advisor is critical to the success of your investment in Thailand. At Skyinterlegal, we combine in-depth knowledge of the BOI framework, the FBA, and other relevant regulatory regimes with practical, hands-on experience in assisting foreign investors across a wide range of industries. We do not take a one-size-fits-all approach; instead, we provide tailored, commercially focused advice that aligns your business objectives with Thailand’s legal and regulatory landscape. From initial eligibility assessment to post-approval compliance, we offer end-to-end support, ensuring that your BOI application is strategically structured, legally sound, and efficiently executed. Our proactive approach and close familiarity with regulatory authorities enable us to anticipate issues, mitigate risks, and deliver a seamless investment experience.

Contact Us

If you’re ready to apply for BOI promotion in Thailand or need expert assistance with any part of the process, don’t hesitate to contact us today.

We look forward to helping you make your investment in Thailand a success. Contact us now to get started!