Setting Up a BOI Company in Thailand: What You Need to Know

Setting up a BOI company in Thailand can unlock numerous benefits for foreign investors. With incentives ranging from tax holidays to simplified visa procedures, the Thailand Board of Investment (BOI) makes the country a top destination for industrial operations. This guide walks you through how to set up a BOI company in Thailand, covering the approval process and the advantages of BOI promotion.

What Is a BOI Company, and Why Set Up a BOI Company in Thailand?

The Thailand Board of Investment (BOI) encourages foreign investment by offering a range of incentives, including:

• Corporate Income Tax Exemptions: Enjoy up to 8 years of tax exemptions.
• Import Duty Exemptions: No import duties on machinery and raw materials.
• 100% Foreign Ownership: Full ownership rights for BOI-promoted companies.
• Land Ownership: Rights to own land for business purposes.
• Streamlined Visa and Work Permit Processes: Faster procedures for hiring foreign workers.

With these advantages, setting up a BOI company in Thailand can help lower operational costs, providing a strategic advantage in Southeast Asia. This makes Thailand a highly attractive location for foreign manufacturers aiming to expand their footprint.

BOI Activity-Based Incentives for Setting Up a BOI Company in Thailand: Understanding Groups A and B

The BOI classifies businesses into activity-based groups, which determine the type of incentives a company can receive.

Group A: High-Technology and Innovation-Focused Industries for BOI Companies

• A1: R&D and innovation activities receive up to 8 years of corporate tax exemption with no cap, plus import duty exemptions.
• A2: Advanced technology projects get 8 years of corporate tax exemption (capped at 100% of the investment).
• A3: High-technology projects receive a 5-year corporate tax exemption.
• A4: Lower-tech projects that strengthen local supply chains benefit from a 3-year tax exemption.

Group B: Supporting Industries for BOI-Promoted Businesses

• B1: Projects receive non-tax incentives like import duty exemptions but no corporate income tax holidays.
• B2: Limited mainly to duty exemptions on raw materials used for export production.

Merit-Based BOI Incentives for BOI Companies in Thailand

In addition to activity-based incentives, the BOI offers further benefits for projects that boost Thailand’s competitiveness. These merit-based incentives fall into three categories:

1. Competitiveness Enhancement for BOI-Promoted Businesses

Projects that invest in R&D, technology training, or local supplier development can receive up to 3 additional years of corporate tax exemptions.

2. Decentralization Incentives for BOI Companies in Low-Income Provinces

Businesses that establish factories in one of Thailand’s 20 low-income provinces, such as Nakhon Phanom or Surin, can benefit from:

• An extra 3-year corporate tax exemption.
• A 50% reduction in corporate income tax for Group A1 and A2 projects after the exemption period.
• Double deductions on transportation, electricity, and water costs for 10 years.

3. Industrial Area Development for BOI-Promoted Zones

Setting up a factory in industrial estates or promoted zones can qualify your project for an additional year of tax exemption. These areas are ideal for foreign manufacturers looking to leverage Thailand’s BOI promotion.

High-Impact Sectors and Special BOI Incentives for Setting Up a BOI Company in Thailand

The BOI offers additional incentives for industries that are critical to Thailand’s growth, such as semiconductors, smart packaging, and renewable energy.

• Semiconductor Manufacturing: Front-end production, like silicon wafer manufacturing, can receive up to 10 years of tax exemptions.
• Smart Packaging: Eco-friendly packaging projects may qualify for up to 8 years of tax exemptions, supporting Thailand’s focus on sustainable development.

How to Set Up a BOI Company in Thailand: A Step-by-Step Guide

Here’s a simplified guide on how to set up a BOI company in Thailand:

Step 1: Identify BOI-Promoted Activities for Your Business

Ensure that your business aligns with one of the BOI’s promoted activities, such as electronics, agriculture, or advanced technology sectors.

Step 2: Prepare Your Documentation for BOI Company Registration

A comprehensive business plan, including detailed financial projections, is essential. The BOI assesses projects based on their economic impact and alignment with Thailand’s development goals.

Step 3: Submit Your Application via BOI’s e-Investment Portal

The BOI provides a streamlined online application process. Make sure to submit all necessary documents through this portal.

Step 4: Evaluation and Approval for Your BOI Company

The BOI reviews your application, evaluating the project’s investment in technology and local supplier development. This stage may involve interviews or additional documentation requests.

Step 5: Receive Your BOI Promotion Certificate and Start Your BOI Company in Thailand

Once approved, your company will gain access to a wide range of tax and non-tax incentives.

This guide helps answer the question, “How to set up a BOI company in Thailand?” With proper preparation, the process is manageable, allowing your business to benefit from BOI incentives.

Why Set Up a BOI Company in Thailand?

Establishing a BOI company in Thailand offers a competitive edge through reduced operational costs and access to one of Southeast Asia’s fastest-growing economies. The generous incentives, from import duty exemptions to 100% foreign ownership, make Thailand an appealing choice for manufacturers and industrial businesses.

Conclusion: Unlock the Benefits of BOI Promotion with SparkUp Solutions

If you are considering how to set up a BOI company in Thailand, understanding the BOI approval process is key to unlocking valuable incentives. With tax benefits, support for high-tech industries, and strategic location advantages, Thailand is a prime destination for industrial expansion.

Ready to make the most of BOI promotion? SparkUp Solutions is here to guide you through the entire process, from navigating Thailand’s legal requirements for factories to securing BOI approval. Contact SparkUp Solutions today to explore how we can support your business in achieving success in Thailand.