The Thailand Board of Investment (BOI) is a government agency under the Office of the Prime Minister that aims to promote foreign and local investment in targeted industries and economic sectors. BOI offers a wide range of incentives and benefits to companies that qualify for investment promotion, making it an attractive option for entrepreneurs and corporations looking to establish or expand their business operations in Thailand.
Registering a company under the BOI can provide significant tax and non-tax benefits, 100% foreign ownership in many cases, streamlined work permits, and visa facilitation for foreign staff. However, the registration process is selective and involves several steps that require careful planning and documentation.
This article offers a comprehensive guide on how to register a company under the Thailand Board of Investment, including eligibility criteria, application procedures, incentives, and compliance requirements.
The Board of Investment (BOI) is Thailand’s main investment promotion agency. Its objective is to attract investment that contributes to Thailand’s economic development, competitiveness, and innovation. The BOI promotes industries in line with Thailand’s national development strategy, including high-tech, digital, green, and value-added sectors.
BOI promotion allows companies to enjoy benefits that are otherwise unavailable to standard Thai or foreign companies.
1. Tax Incentives:
2. Non-Tax Incentives:
The BOI targets a broad range of sectors, including but not limited to:
Each sector has specific criteria that must be met to qualify for incentives.
Before applying for BOI promotion, businesses must:
Consulting with a legal or investment advisory firm is recommended to ensure alignment with BOI policies.
Applications for BOI promotion must be submitted online through the BOI Investment Promotion System (e-Investment Promotion Portal).
Documents required include:
BOI officers may contact the applicant for clarification or request further documents during the review.
After initial review, applicants are invited to present their project to BOI officials. The company representative (or appointed consultant) explains:
This step is crucial, as BOI needs to evaluate the project’s developmental impact.
Following the presentation:
If the application is approved, a BOI promotion certificate is issued within 10 days, and the company is granted promotional privileges.
Once BOI approval is obtained, the company must:
The company must also open its BOI-promoted project within the approved timeline.
After registration, the company must follow BOI compliance requirements:
Failure to comply may result in revocation of promotional privileges.
BOI promotes foreign investment by facilitating immigration processes:
This flexibility is especially attractive for companies needing to deploy international talent quickly.
BOI-promoted companies must:
If the company meets the full conditions of its BOI certificate, it can enjoy tax and non-tax benefits without interruption.
Working with local advisors or BOI-accredited consultants can help avoid delays or rejection.
Registering a company under the Thailand Board of Investment is a strategic move for businesses seeking growth in Southeast Asia. BOI promotion not only provides significant tax breaks and legal advantages for foreign investors but also signals government support for your business operations in Thailand.
By carefully preparing your application, aligning with the BOI’s targeted industries, and meeting compliance requirements, you can take full advantage of Thailand’s investment-friendly environment. Whether launching a tech startup, manufacturing plant, or service center, BOI registration is a powerful tool to enhance your company’s competitive position in the Thai market.
A Representative Office in Thailand is a type of business structure that allows foreign companies to establish a presence in the country without engaging in revenue-generating activities. It serves as a liaison between the head office and Thai entities or customers, performing non-commercial functions such as market research, product sourcing, or quality control. Setting up a Representative Office is ideal for foreign companies that want to explore business opportunities or manage operations in Thailand without committing to a full-scale business investment.
This article provides a comprehensive guide to the purpose, benefits, limitations, and step-by-step process for establishing a Representative Office in Thailand.
Under Thai regulations, a Representative Office may conduct only five types of activities, as prescribed by the Ministry of Commerce:
These activities are strictly non-commercial. The RO cannot generate income, issue invoices, trade goods or services, or engage in direct business negotiations for profit.
Setting up a Representative Office offers several strategic advantages:
However, since an RO cannot earn income or enter into contracts, its use is suitable mainly for research, coordination, and support functions.
Foreign companies seeking to establish a Representative Office must meet the following conditions:
The parent company must gather the following documents:
All foreign documents must be notarized and legalized by the Royal Thai Embassy or Consulate in the country of origin.
As of 2023, the process of setting up a Representative Office is overseen by the Department of Business Development (DBD) under the Ministry of Commerce. The application includes:
Registration normally takes 7 to 15 business days, assuming all documentation is in order.
The parent company must remit a total of THB 2 million in stages:
The capital must be transferred from overseas to the RO’s bank account in Thailand and is used for operational expenses like rent, salaries, and administrative costs.
Even though an RO does not generate income, it must register with:
The office is responsible for withholding and submitting tax on employee salaries and contributing to the social security fund.
The RO can sponsor work permits for foreign managers and employees. The number of work permits allowed is generally linked to the size of the office and capital invested.
Usually, one work permit is allowed for every THB 3 million of capital, although exceptions may apply for managerial positions.
While Representative Offices are simpler to manage than full companies, they still have compliance obligations, including:
Before deciding on this structure, it is important to consider the limitations:
If you plan to actively do business or earn profits in Thailand, a Thai Limited Company or a BOI-promoted company may be more appropriate.
Establishing a Representative Office in Thailand is a strategic option for foreign companies seeking to explore the market, coordinate with Thai partners, or manage quality control without directly engaging in trade or generating revenue. It offers a low-risk, tax-efficient structure for limited operations, though it comes with restrictions on commercial activity.
With the right legal and administrative guidance, setting up a Representative Office can be a straightforward and effective way to establish a foreign corporate presence in Thailand. As always, it is advisable to consult with local legal professionals or corporate service providers to ensure full compliance with Thai regulations and to determine the best structure for your business objectives.
Registering a Thai limited company is a crucial step for entrepreneurs, both local and foreign, who wish to establish a business presence in Thailand. A limited company is the most popular and widely accepted business structure in Thailand due to its credibility, flexibility, and relatively straightforward setup process. This type of company offers shareholders limited liability and allows for structured corporate governance. Whether you're starting a small enterprise or entering the Thai market as a foreign investor, understanding the procedures, legal requirements, and necessary documentation for company registration is essential.
This article will guide you through the complete process of registering a Thai limited company, from name reservation to tax registration, and highlight important legal and regulatory considerations.
A Thai limited company is similar to a private limited company in other jurisdictions. It is a legal entity separate from its owners (shareholders), and its liabilities are limited to the unpaid portion of the company’s shares.
The company must have:
Foreign investors can participate in a Thai limited company, but there are restrictions on foreign ownership in certain industries unless promoted by the Board of Investment (BOI) or protected under treaties such as the US-Thai Treaty of Amity.
The first step is to reserve a company name with the Department of Business Development (DBD), under the Ministry of Commerce. The name must:
You can submit three name choices through the DBD's online system. Approval usually takes 1–3 business days.
The Memorandum of Association includes the following key details:
The registered capital can be any amount, but certain visas and licenses require a minimum capital, such as THB 2 million for foreign business operations.
Once the MOA is filed, a statutory meeting must be held with the promoters and subscribers (shareholders). During this meeting, the following are resolved:
After the statutory meeting, the company must be officially registered with the DBD within three months. The application for registration includes:
The registration fee is approximately THB 5,500 per THB 1 million of registered capital (minimum THB 5,000). This step establishes the company as a legal entity.
Once the company is registered, it must apply for:
Applications are submitted to the Revenue Department.
The company needs a corporate bank account to manage finances and receive payments. Banks will usually require:
Some banks may have specific requirements, particularly if foreign shareholders or directors are involved.
If the company hires employees, it must register with the Social Security Office (SSO) within 30 days of hiring. Both employer and employee are required to contribute monthly to the social security fund.
Depending on the nature of your business, additional licenses may be necessary, such as:
Foreigners involved in restricted industries may need to apply for a Foreign Business License (FBL) unless exempt under BOI promotion or international treaties.
Under the Foreign Business Act (FBA), foreigners cannot hold more than 49% of shares in companies operating in restricted industries unless they obtain a Foreign Business License or are promoted by the BOI.
Applying for BOI promotion provides benefits such as:
BOI applications must demonstrate economic benefit to Thailand, such as technology transfer or employment.
Once the company is registered and has the required capital, it can sponsor work permits for foreign directors or employees. Typically, the company must employ four Thai staff per foreign work permit and maintain a capital of at least THB 2 million per foreign employee.
The full process of company registration typically takes:
With proper preparation and legal support, the process can be completed within 2–4 weeks.
Registering a Thai limited company is a well-defined process but requires careful attention to legal and regulatory requirements. From name reservation and company registration to tax compliance and licensing, each step must be completed accurately to ensure a smooth business launch. Whether you're a local entrepreneur or a foreign investor, engaging a qualified legal or corporate services firm can help you navigate the registration process efficiently, stay compliant with Thai law, and set your business up for long-term success.