It’s very easy for foreigners to set up a business in Thailand. Apart from the fact that the country’s constitution freely allows it, the country also offers massive perks and benefits to foreign investors. This is the very thing that continuously boosts Thailand’s aggressive and strong economy.
Thailand is open for business and it goes all out in making foreign investors know that they’re more than welcome. Thailand’s Board of Investment is an established government entity with a mandate to encourage foreign investors – day in and day out — to invest in the country. Its government pays a group of people to go all out in making it easy for foreigners to bring in money to their country. So much so that Thailand’s BOI has categorized the following business to receive massive perks:
- Businesses in the agriculture and agricultural products
- Businesses involved in ceramic, mining, and basic metals
- Businesses in the light industry
- Businesses in the electronic industry and those involved in producing electric appliances
- Businesses involved in producing machinery, metal goods, and transport equipment
- Businesses that offer services and public utilities
- Businesses involved in the production of paper, chemicals, and plastics
- Businesses in technology and innovation development
Lumpini Park, Bangkok
If you’re a foreign investor and you want to bring in more value to your money and enjoy massive perks, you should highly consider investing and participating in Thailand’s ever-growing economy. Choosing to do so would have you enjoy the following massive perks that no other foreign country easily offers:
Advantages or benefits of investing in Thailand
a. Tax privileges
- Exemption from import duties
- Reduction of tax on import duties
- Exemption on income tax of a juristic person
- Exemption on dividends of a juristic person
- Double deduction on payment for water, electricity, and transportation bills
- 8-year exemption on corporate income tax – this is massive because this means that you will get eight quiet years of not having to pay tax if you’re a foreign corporation that established a business in Thailand — note though that this exemption is only applicable if you’re in the following industry: research and development for the improvement of the country’s competitiveness, infrastructure endeavors for the country’s development, and businesses that utilize advanced technology for the production of value-added services.
- 5-year exemption on corporate income tax if you invest in a business that uses advanced technology which is essential to the country’s development
- 3-year exemption on corporate income tax if you invest in businesses that use lower technology but improve the value of the country’s resources and local supply-chain
b. Non-tax privileges
- Permission to bring in skilled experts and laborers into the country
- Permission to own land – some countries, like the Philippines, don’t allow foreigners and foreign investors to own local land
- Permission to remit money abroad using foreign currency
- Permission for foreigners to stay in Thailand for the sole purpose of studying investment opportunities in the country
- Sensitive privileges
- Extra privileges
To fully enjoy all the massive BOI perks, one needs to register BOI in Thailand. BOI company formation in Thailand is made extra easy and hassle-free.
Documents Needed for BOI Registration in Thailand
To register and have a bona fide BOI certificate that can allow you to enjoy massive tax and non-tax privileges, you simply need to prepare the following documents:
1. Duly accomplished BOI promotion certificate application form
All BOI forms are fully accessible and easily downloadable on the official website of Thailand’s Board of Investment. Checklists for comprehensive and easy applications for BOI registration are also available on BOI’s official website.
2. Valid memorandum of association
This is a legal document that formalizes the founding (with promoters) of a company. Without one, the country is not going to acknowledge that a company is duly being found in its country. No corporation can be valid in the country without such a memorandum.
3. Valid certificate of company’s registration
It takes around one to two days for a lawyer to prepare documents for this registration. This registration is duly signed by the director and the shareholders.
4. Valid certificate pertaining to the company’s capital and address together with its authorized directors
This certificate will formally declare the address of the company that will be used for all future transactions (tax and non-tax related) of the company with the government. Should there be any legal cases, letters and documents pertaining to it will be sent to this address.
5. Valid list of shareholders
To date, the country requires that there should at least be a minimum of three shareholders.
6. Valid proof of fund transfer from abroad, if not available an investment certificate from the Bank of Thailand will do
A company can choose between two possible options. An investment certificate from the Bank of Thailand will require a separate list of needed documents.
7. Valid contract on any of the following: technology transfer, technical assistance, licensing agreement, or joint-venture
It is imperative for a foreign investor who wishes to enjoy BOI benefits to show a valid contract of any of the four listed above.
8. Valid form that defines HR requirements
This form will secure that a foreign investor will duly observe and comply with all pertinent labor requirements of the government of Thailand. This will enlist all the benefits, incentives, and particular protocols that employees and employers will duly observe.
Just prepare these documents and you are one step closer to BOI registration in Thailand. Get your registration and enjoy the perks of investing in Thailand.