If you're planning to start a business in Thailand, you should definitely apply for funding from the BOI Thailand (Thailand Board of Investment). The BOI offers incentives to businesses in selected sectors to promote Thailand's growth and support its economic goals. Take advantage of this opportunity to give your company a competitive edge. This page explains what the BOI is, how it can support you, and how to apply for funding.

What is the Board of Investment (BOI) Thailand?

Established in 1966, the Office of the Board of Investment (BOI) reports to the Prime Minister's Office and is a government agency that promotes foreign direct investment in Thailand by developing investment policies. Through tax incentives and other benefits, the BOI supports companies in sectors that the government wishes to strengthen and expand in order to achieve the country's overall economic goals.

For you as an entrepreneur, this means greater competitive advantages, higher profitability and better chances of success in the Thai economy.

Objectives of the Thai Investment Committee

These are the most important tasks that BOI Thailand plays:

  • Promoting investment opportunities in Thailand and abroad
  • Technology development and innovation in Thailand
  • Increased economic growth in Thailand

    • If it is determined that your company contributes to these goals, you can apply for BOI funding in Thailand.

    Benefits of BOI funding for a company in Thailand

    Limited companies in Thailand are subject to specific tax rules and regulations. However, if your company receives a BOI (Business Improvement Initiative) certificate, you will benefit from a variety of tax and non-tax incentives.

    Tax incentives of the Thai BOI

    Here are some of the tax benefits associated with a BOI promotional certificate in Thailand:

  • Exemption from or reduction of import duties on machinery
  • Reduction of import duties on raw materials or essential materials
  • Exemption from import duties on materials imported for research and development purposes
  • Exemption from corporate income tax on net profit and dividends from the supported activity
  • Double deduction from the costs for transport, electricity and water supply

    • Non-tax incentives of the Thai BOI

    Furthermore, a BOI funding certificate in Thailand also offers some non-tax benefits:

  • Authorization to recruit foreign specialists for activities within the framework of investment promotions
  • Authorization to transfer money abroad in a foreign currency

    • Is your company eligible for BOI funding?

    Your company qualifies for BOI funding if it meets the following criteria:

  • Your company falls into one of the four permissible business categories.
  • Your company carries out eligible activities according to its category.
  • Your company meets the minimum capital requirements.
  • Your company is properly registered under Thai law.
  • Your company is able to meet the conditions set by the BOI and provide the necessary evidence.

    • To obtain a BOI Thailand Promotional Certificate, you must first ensure that your planned business activity falls into one of the business categories identified by the BOI as growth sectors. These categories are:

  • BCG Industries: Agriculture, food, biotechnology and medicine.
  • Advanced manufacturing industries: mechanical engineering, automotive industry, aerospace, defense and electronics.
  • Basic and supporting industries: minerals, high-tech materials, metals and chemicals; public utilities and environment; real estate development for industrial purposes.
  • Digital, creative industries and high-quality services: digital, lighting, film, tourism and logistics; smart city development; professional services.

    • If you are unsure whether your planned business falls under these categories, you should speak to an experienced corporate lawyer to find out.

    List of BOI-eligible activities

    Once you have confirmed that your business operates in one of the categories mentioned above, you should verify that your business activities are required for BOI funding. These activities vary by industry; a complete list can be found on the BOI website or obtained from a qualified advisor.

    If your company does not carry out the relevant business activities, it may not be approved, even if it operates in the relevant industry.

    For example, if your company operates in the medical sector, it must carry out the following activities to obtain a BOI funding certificate:

  • Manufacture of medical devices
  • Medical and health services

    • If your company carries out at least one of the eligible activities in your business category, it can qualify for a BOI funding certificate.

    How to apply for BOI funding in Thailand

    Applying for BOI funding is a lengthy and complex process. Errors in completing the application can lead to permanent exclusion from BOI funding. Therefore, it is advisable to engage a team specializing in Thai corporate law, such as Siam Legal, to guide you through the process.

    Our experienced team will guide you through every step of the process to optimize your BOI funding application and offer you the best possible chance of approval. Here are the basic steps of our services:

    1. Feasibility study

    Before you begin the application process for the BOI Thailand, an important step is required: the feasibility study of your project. In this initial phase, we review your business plan to gain insights into your project and assess its prospects for success. This allows us to determine if and what changes to your BOI plan are necessary before submitting the final application.

    2. Submit application

    Once we have reviewed your BOI plan and strategy and made the necessary changes, we will submit your investment grant application on your behalf.

    3. Project presentation

    After we submit your application, the BOI will contact you within 10 business days to schedule a presentation. In this presentation, you will explain to the BOI why you should be granted the promotion. If you are worried about this, don't be. We will accompany you to the presentation to ensure everything runs smoothly.

    4. Project evaluation and consideration

    After the presentation, the BOI will review your project and make a decision. The review and decision time depends on the size of your investment.

  • Investment capital of up to 200 million Baht will be reviewed within 40 working days of receipt of the complete application.
  • Investment capital of up to 2 billion baht will be reviewed within 60 working days of receipt of the complete application.
  • Investment capital exceeding 2 billion baht will be reviewed within 90 days of receiving the complete application.

    • 5. Notification of the examination results

    Once the BOI has made its decision, you will be informed in writing within 7 working days whether your application has been accepted.

    6. Acceptance of investment subsidies

    If your application is accepted and you are offered a promotion, you have one month from the date you receive written notification to decide whether to accept the offer.

    7. Application for the issuance of a transport certificate

    If you accept the transport, you have six months from the date of your acceptance to submit your application for a transport certificate. Our team will be happy to assist you with this step; further information can be found in the next section.

    8. Issuance of the transport certificate

    If all required documents are submitted, the BOI will issue you a certificate of carriage within 10 working days.

    Registration of a company in Thailand while simultaneously applying for a BOI investment promotion certificate

    If you wish to obtain BOI Investment Promotion Certification, it is essential that your Thai company is fully established within six months of your application being approved by the Thai BOI. During this time, you must submit the following documents to the Thai Investment Board:

  • Application form for BOI funding certification
  • Company registration certificate
  • Articles of Association
  • Certificate including the share capital, the names and addresses of the authorized managing directors and the registered address of the company.
  • Investment certificate from the Bank of Thailand or receipts for money transfers from various countries
  • Technology transfer agreement or contract
  • Form containing all personnel requirements

    • The registration form usually comprises 8-10 pages and must contain the following information:

  • The total amount of your company's share capital and how you intend to use or invest this money.
  • Details of your business plan and the machinery or software programs you will use during the execution of your project.
  • The number of people you will hire from Thailand and abroad, and their salaries.
  • The steps or strategies you will use to train your Thai staff.
  • All relevant details such as the skills and qualifications of the company's management team.
  • Your company's estimated revenue for the first few years.

    • That's a lot of things to gather and prepare, but the corporate law team at Siam Legal has done this many times before and can help make the process faster and smoother.

    Deadline for submitting documents for a BOI application in Thailand

    It is essential that you submit all documents by the deadline. However, if you are unable to submit all documents to the Board of Investment (BOI) of Thailand within the specified timeframe, you must send a letter of explanation to BOI Thailand. BOI Thailand will then grant you an extension. Please note that this extension is limited to a maximum of four months and can be requested no more than three times.

    Once the Thai Investment Board has received all the necessary documents, you will receive the investment promotion certificate for your new business. From this point on, you are obligated to comply with all the conditions specified in the certificate for your business.

    Financial injection

    The investment must be made at least 30 days before the BOI funding certificate is issued. Foreign companies must provide proof of this. The investment amount varies depending on the industry, but is at least 1 million THB.

    Application for work permits and visas from the BOI

    Once your company has received the BOI Promotion Certificate, a few more steps are necessary to fully leverage all the benefits. First, you must register your company in the e-Expert system before hiring foreign employees. Once foreign applicants have been approved by the e-Expert system, they can submit their applications for work permits and visas for Thailand through the BOI One Start One Stop Investment Center (OSOS).

    This allows your foreign employees to obtain work permits faster and more cost-effectively than with the traditional procedure.

    Responsibilities related to compliance and reporting to the BOI

    To receive your funding, your BOI-supported company must meet the following requirements after receiving the BOI funding certificate and report back to the BOI as soon as you have done so:

  • Import the machinery and equipment within 30 months to benefit from reduced customs duties.
  • The construction of the company headquarters or factory must be completed within 36 months and all machinery and equipment must be installed.
  • If you need more time to complete these steps, you must inform the BOI in writing.

    • Accounting and reporting regulations for BOI companies in Thailand

    Every company registered with the BOI in Thailand must strictly adhere to accounting and reporting regulations. Officials from the Thai Revenue Service and BOI inspectors conduct regular, rigorous audits to ensure your company complies with all regulations. This includes reporting Social Security (SSF) contributions, managing withholding tax (WHT), reporting value-added tax (VAT), and undergoing an annual audit.

    Get in touch with our legal experts!

    Registering your company with the Thai Board of Investment (BOI) gives you an immediate competitive advantage when setting up your business in Thailand and will continue to benefit you in the years to come. While the time and effort are worthwhile, success is not guaranteed. Therefore, it is essential to contact Siam Legal's corporate lawyers in Thailand for support throughout this process and to ensure you are eligible for BOI funding.

    Our team of legal experts ensures a smooth and straightforward company registration process in Thailand. This allows you to focus entirely on building your business and confidently reap all the benefits. Contact Siam Legal today!

    For information and support in setting up your business in Thailand, please fill out the form below and send it to us.