Registering a company under the Thailand Board of Investment gives your business access to tax incentives and non-tax privileges. These benefits vary depending on your business’s activity, investment capital, and location.
Some of the privileges include corporate income tax exemptions that last up to thirteen years, no taxes on importing machinery and equipment essential for your project development, a fast process for work permits and visas, and more.
Choosing a Company Name
Choosing a company name is a crucial first step in the company registration process. It helps set the tone for your company’s identity and credibility in the Thai business market, so it is vital to make sure that the chosen name is legally approved.
You can reserve a company name on the Department of Business Development website. The name should be different from any other registered company and end with the word “Limited”. Name reservation is normally approved within 1-3 days, but the approval will only be valid for 30 days.
After reserving a company name, investors must complete the rest of the necessary paperwork to register the business. This includes drafting up the Memorandum of Association, listing the names and addresses of the founders, and explaining their shareholding ownership. Investors should also register their company with the Revenue Department and obtain a tax ID number if applicable. Depending on your company structure, you may need to register for other licenses and permits as well.
Organizing Shareholders and Directors
Before a company can register under the Thailand Board of Investment, it must have a set of shareholders and directors. This can be accomplished during a statutory meeting that follows certain guidelines established in the Articles of Association (AOA).
A business must also obtain any necessary licenses or permits to engage in its intended activities. These may include a domestic recruitment license, an import/export license, a factory license, a hotel or E-commerce license, and more. These may impose conditions such as minimum capital requirements and foreign share ownership or directorship.
If a company wants to apply for BOI promotion, its proposed project must develop competitiveness and utilize modern production processes. The business must also make sure that its value-added is not less than 20% of revenues. It must also follow strict accounting procedures. These steps must be followed to avoid misrepresentation, which could lead to legal trouble. A corporate lawyer can help guide the process and ensure that all documents are correct before submitting them to a BOI officer.
Obtaining a Commercial Address
When setting up a company, it is important to choose a commercial address that is easily accessible by the local community. It should also be in close proximity to public transport routes. We help clients find suitable commercial addresses that meet BOI requirements.
The BOI is a division of the Thailand government that promotes business start-ups in sectors deemed beneficial to the country’s economic outlook. It offers tax and non-tax incentives to companies that qualify for promotion.
Currently, the BOI gives more weight to applications in industries that develop the nation’s technological capacity, such as digital technology, “smart agriculture” and biotechnology, aviation and logistics, and automation and robotics. The BOI will analyze your application based on the criteria you present to them, and they will provide feedback within seven days of your submission. This will include details about the approval and BOI privileges you receive. Our services include preparing and filing BOI paperwork as well as assisting with post-BOI licensing compliance.
Creating an Online Account
In addition to tax incentives, BOI companies receive a host of privileges that can help make Thailand a great place to conduct business. These benefits range from financial support and regulatory exemptions to land ownership and foreign employee visas.
The first step in registering as a BOI company is to consult a legal and accounting professional who can assess your eligibility for BOI benefits. Then, you’ll need to prepare a comprehensive business plan. This portion of the process is crucial, as the reviewing BOI official will scrutinize all facets of your investment and operations in Thailand.
After the business plan is complete, you’ll need to submit it to the BOI through its e-investment platform. Once approved, you’ll then need to present your project to a BOI committee. After this, the committee will decide whether to approve or reject your application. If approved, you’ll then proceed with regular company registration.
