Registering a company under the Thailand Board of Investment can be a great option for foreign investors. This program allows foreigners to own 100% of the company, and it also offers incentives like years of corporate income tax exemption.
It also offers non-tax benefits such as a reduction in import duties on machinery and other expenses. However, the process can be complex and requires a lot of preparation.
Business line
The Office of the Thailand Board of Investment (BOI) offers both tax and non-tax incentives to foreign companies that invest in specific industries. The BOI currently prioritizes business categories that involve technology and innovation, manufacturing, export, and other investments showing potential for growth. Companies wishing to obtain BOI promotion must submit application forms related to their business category.
These forms are available at the BOI headquarters or online. After the company is approved, the BOI will notify it of the details of its promotion. The company must reply to this notification within 30 days. If it cannot meet this deadline, it must submit an explanatory letter to the BOI.
After the company receives a BOI certificate, it must register in the e-expert system and apply for work permits and visas. It can also take advantage of non-tax privileges such as exemption from corporate income taxes for up to eight years, reduction or waiver of import duties on raw materials, and deductions for the cost of transportation, electricity, water, and project infrastructure installation.
Capitalization
When a company is registered under the Thailand Board of Investment, it must meet certain capitalization requirements. This is especially true if the company is going to employ workers. The registrar must ensure that all shares have been subscribed to, the promoters have transferred their stake in the business and the share capital has been paid for.
Companies must also keep their books and follow accounting procedures. They must also have a physical address and arrange for annual general meetings of shareholders. Revenue department officials and BOI inspectors will monitor these activities strictly. In addition, companies must file reports on Social Security Fund, Withholding Tax and Value Added Tax.
The BOI provides both tax and non-tax incentives to promote businesses in targeted industries. These incentives may include exempting from corporate income taxes and reducing or removing import duties for raw materials, machinery and equipment. The BOI also allows foreign companies to hire skilled workers and experts by registering them in the e-expert system and providing express visa processing through “One-stop Visa.” Non-tax incentives can include exemption from property taxes and land ownership.
Articles of association
When registering a company, the articles of association are a key component. These documents define the company’s purpose and lay out how tasks are accomplished within the organization. They also include the process of appointing directors and handling financial records. In order to be approved by the Thailand Board of Investment, the articles must meet certain requirements.
Foreign companies can establish themselves in the country by registering as a private limited company, which allows them to have up to 49 percent foreign ownership. There are some restrictions on foreign ownership in specific sectors, such as telecommunications and banking, but American companies receive national treatment and are exempt from these restrictions.
The BOI promotes investment by offering tax and non-tax incentives in targeted economic sectors. These initiatives have helped the country improve its ranking in the World Bank’s Doing Business Report. This means it is easier to start a business in the country.
Shareholders
The Board of Investment (BOI) offers incentives to foreign businesses that provide new technology and benefits to Thailand. Companies that have been approved by the BOI can enjoy a number of benefits, including tax exemptions, tariff reductions, and free land ownership. To receive these benefits, it is important to follow the rules and regulations set by the BOI.
BOI-promoted businesses are subject to strict reporting and accounting protocols. These include the submission of basic reports, such as those on Social Security Fund and withholding taxes, as well as yearly audits by the Revenue Department. These reports and protocols are strictly enforced by BOI officials and Revenue Department inspectors.
In addition to the tax benefits of being a BOI company, entrepreneurs get protection from nationalization and the ability to bring in foreign workers and experts. They also have access to the BOI’s One-stop Service Centre for visa and work permit processing. In addition to these privileges, BOI companies can benefit from other non-tax privileges such as exemption from corporate income tax, tariff reductions or waivers on machinery imports, and free-trade treatment for raw materials used in production.