While Thailand stands as one of Southeast Asia’s most welcoming and dynamic hubs for investment, foreign entrepreneurs are often met with the legal framework of the Foreign Business Act (FBA), which places certain restrictions on foreign participation. However, for those with a vision aligned with Thailand’s economic goals, there exists a powerful and strategic pathway that transcends these limitations: securing promotion from the Thailand Board of Investment (BOI).
The BOI is the nation’s principal agency for promoting strategic investment. A Thai BOI company setup is not merely an alternative; it is the premium gateway for foreign investors, offering a suite of unparalleled incentives designed to foster growth in key sectors. This article explores the significant benefits that come with obtaining BOI promotion.
What Exactly Is a BOI-Promoted Company?
It is crucial to understand that a BOI-promoted company is not a separate legal entity. Rather, it is a standard Thai limited company that has been granted a “promotion” certificate by the BOI. This certification is a seal of approval, signifying that the company’s business plan aligns with the country’s development objectives.
This promotion is not available to all businesses. It is exclusively reserved for companies operating within a specific list of BOI eligible activities. These are industries targeted by the government for their potential to advance the nation’s capabilities, focusing heavily on technology and innovation, research and development, green energy, and other high-value sectors.
A Deep Dive into BOI Benefits
Securing BOI promotion unlocks a range of advantages that fundamentally change the landscape for a foreign investor. These are broadly categorized into tax and non-tax incentives.
Benefit 1: Overcoming Ownership Restrictions (The Ultimate Advantage) The single most significant benefit of BOI promotion is the right to 100% foreign ownership. This directly bypasses the FBA’s standard 49% limit on foreign shareholding, placing complete control of the company’s direction, management, and equity in the hands of the foreign investor. This level of autonomy is invaluable for strategic decision-making and long-term planning.
Benefit 2: Powerful Tax Incentives The tax incentives offered by the BOI are designed to give businesses a substantial financial advantage during their critical early years.
- Corporate Income Tax Exemption: The flagship tax benefit is a corporate income tax exemption. Promoted companies can be granted a “tax holiday” for a significant period—potentially for many years, depending on the business category and its merits. This allows the company to reinvest its profits directly into growth and expansion.
- Exemption on Import Duties: To facilitate a smooth setup and operation, BOI companies can receive exemptions on import duties for essential machinery. Furthermore, exemptions may be granted for raw or essential materials imported for use in production for export.
Benefit 3: Compelling Non-Tax Incentives Often just as valuable as the tax breaks are the non-tax incentives, which solve many of the logistical and legal challenges faced by foreign businesses.
- Permission to Own Land: In a landmark exception to Thai law, BOI-promoted companies are granted permission to own land necessary for carrying out their business activities. This provides immense stability and asset value, a privilege not available to standard foreign-majority-owned companies.
- Streamlined Work Permits and Visas: BOI companies benefit from a highly streamlined process for obtaining visas and work permits for foreign staff. This makes it significantly easier to bring in the required expatriate talent, technicians, and experts, with fewer restrictions and a faster-than-usual work permit for BOI company processing time.
- Permission to Remit Money Abroad: Investors are given a guarantee that they can remit foreign currency abroad without impediment. This applies to investment capital, dividends, profits, and other funds after tax obligations have been met.
The Path to BOI Promotion
Achieving BOI promotion is a merit-based process. It involves submitting a detailed and persuasive business plan that demonstrates how the project will benefit the Thai economy. The application must show a clear plan for investment, job creation, and, most importantly, alignment with national development goals, such as the transfer of advanced technology or the development of innovative products and services.
Conclusion
For strategic investors with projects in targeted industries, a Thai BOI company setup is the gold standard. It offers a clear and officially endorsed path to overcoming traditional investment barriers, providing a comprehensive package of benefits that includes 100% ownership, significant tax relief, the right to own land, and facilitated access for foreign talent. It is an unequivocal statement of support from the Thai government.
The application process is meticulous and requires expertise to navigate successfully. For any entrepreneur whose vision aligns with Thailand’s future, seeking professional guidance is the first step. Contact the experts at Act and Align Advisor to assess your eligibility and masterfully guide you through the BOI application process.
