If you set up a business as a foreigner in Thailand, you need to register it. The following information will give you the specifics of how a Board of Investment (BOI) application and registration are filed.
What is the Board of Investment?
The BOI law is a policy that came into effect in 1954 when the Thai government announced its Industrial Promotion Act. At that time, the government began subsidizing and supporting incentives for foreign business owners to establish themselves in Thailand. Through this law, the government promises that it would not interfere with foreign business activities or attempt to nationalize a business that was foreign-based.
The BOI’s Current Policy
Currently, the BOI promotes investment to increase business competitiveness by promoting research and development and supporting operations in the industrial, farming, and service sectors. The idea is to encourage fair competition and reduce levels of economic disparity. The BOI wishes to support business activities that are friendly to the environment while saving energy to back sustainable growth. By promoting overseas investments, Thailand can assume a viable role in the global economy.
Why a BOI Investment Registration Can Benefit a Foreign Business
If you are a foreigner wishing to do business in Thailand, setting up a BOI company will provide you with several benefits. For example, an investment of this type allows you to completely own the business. You can also permit the use of work permits and visas so skilled workers and professionals can support your business. Employees and their families from outside of Thailand can work for you and live in Thailand with their families.
Setting up a BOI company also enables you to run your company without paying corporate income tax (CIT) for up to 15 years. This benefit is extremely appealing to BOI-established companies. You can also own land if you set up a BOI business. Foreigners who are not business owners do not have this privilege.
As a result, Thailand provides unprecedented incentives for anyone who wishes to establish a company in Thailand. Foreign investors like these incentives as well as the country’s commerce-friendly location.
Why Foreigners Want to Invest in Thailand
Foreigners like to invest business money in Thailand, as they can experience steady growth economically and have access to natural resources. Also, Thailand features a solid consumer market that includes the ongoing export of goods worldwide.
Thailand’s Foreign Business Act (FBA)
Thailand’s Foreign Business Act (FBA) is the basis for foreign company formations, registration, and operations in Thailand. While registering a business in Thailand can be a challenge for people who are not familiar with Thai law, attorneys can help with the process.
Popular Business Structures
Thailand offers a number of business structures to foreigners. One of the more popular structures is the Limited Company, as it can be established quickly. Therefore, the registration process depends on the type of business structure chosen.
Another incentive accorded for foreigners is the owning and holding of company shares. Therefore, companies that are registered in Thailand can own shares, get tax breaks, and have easier access to work permits and visas. That is why the Board of Investment or BOI encourages foreigners to actively invest in Thailand.
If you set up a Thai limited company, you can protect your investment and start operating in a relatively short time. Foreign work permits are strongly supported under this structure. The next popular business structure is the BOI company. The major incentive, again, with this company, is the tax breaks. Foreigners with BOI sponsored companies can completely own land and own their business 100%.