Registering a Company Under the Thailand Board of Investment is one of the most important steps for foreign companies looking to invest in the country. Obtaining BOI promotion offers many benefits to companies looking to establish operations in the country, including tax incentives. The process of registering a business under the BOI is complex, but our team of experts at Plizz can guide you through every step. Contact us today for a free consultation.
The BOI Thailand business set up process starts with undertaking a detailed business feasibility study to ensure that the project will be viable and profitable. Once complete, the company will need to submit forms relating to its specific business category to the Department of Business Development, Ministry of Commerce and then register with the Revenue Department for value-added tax (VAT) and corporate income tax. The company will also need to secure a work permit for its foreign director and employees.
Once the forms are submitted, a BOI officer will review the application and often ask for complementary information to make sure that the numbers included in the business plan match up and make economic sense. This back and forth can take time, but it is essential to the success of the application.
If the BOI approval is granted, the company will receive a number of non-tax benefits that can significantly boost the business’s bottom line. These include being able to import machinery and raw materials at reduced rates. Foreign investors are also exempted from paying taxes on their profits and can deduct a percentage of their operational expenses.
Additionally, companies that are approved for BOI will have a simpler and faster process to obtain work permits for their foreign employees. Foreign executives and senior managers may even be able to obtain visa extensions for extended periods of time.
The final benefit that BOI-promoted companies can enjoy is having access to a more extensive network of government agencies and support services. These can be vital for companies that are attempting to enter the Thai market, which is highly competitive and has an abundance of opportunities for global expansion.
The BOI is primarily focused on driving economic growth in Thailand by encouraging direct investments from foreign entities. This includes high-dollar projects that are considered to have a strategic impact on the country. Ultimately, the BOI is an important part of the country’s effort to become a global manufacturing hub, with a focus on enhancing technology and innovation for future generations. The country is currently undergoing a transformation to the new economy, or Thailand 4.0, and this will offer heightened incentives for companies wishing to set up shop in the country.