If you are seeking to establish your company in Thailand by registering the BOI company BOI company could be the best option. Several benefits can be obtained through the establishment of this type of business. Read on to find out how to register an BOI company in Thailand and what the process entails. Learn about the process of applying and the Target industries.
Benefits of registering a BOI company in Thailand
A business that is registered as a BOI can benefit from various incentives. The taxation of the business activity is lowered by 70% over the first five years. Companies that are located in one of the key investment zones identified by BOI are exempt from the import taxes on raw materials. In addition, companies can enjoy exemptions on water, electricity, transportation and infrastructure installation costs. Some companies may also enjoy tax benefits that are not tax-deductible, like hiring foreign-trained workers without needing to hire four Thai employees. Companies that are BOIs are able to also enjoy 100 foreign ownership and speedy visa processing.
A registered BOI company must also possess an amount of capital. This is referred to as the registered capital. A company must have at minimum THB 250,000 of authorized capital to be registered. To register, the business must also pay the government fees.
Application process
The first step in establishing the BOI company in Thailand is to fill in the necessary application forms. These forms can be obtained at the BOI headquarters or through online investment platforms. The forms are between 8 and 10 pages long and include questions regarding the nature of the company, its target clients, investors, shareholders and other details. After the form is completed, it must be sent to the BOI along with the required documents and the fees.
Once you have received the required documents The next step is to apply for the permits and licenses. A foreign-owned company has to obtain a Foreign Business License in Thailand within 60 days of its incorporation. It is also required to register for VAT within 30 calendar days of the company’s annual revenue that exceeds 1.2 million THB.
Accounting requirements
If you’re planning to open an BOI company in Thailand There are some accounting requirements you’ll need to satisfy. First of all the amount of your investment capital must be at least 1 million Baht. This amount can be physical assets, cash or any combination of these. Avoid using land, production costs and payroll budgets as well as other assets for investment capital.
Another requirement is that your company must add at least 10% value to the product that you create. If you sell coconuts, for example, you must add 10 percent to the price of the product. Your IT staff must also be paid a minimum of 1.5 million baht annually. For manufacturers, you must get approval from the relevant government bodies for your machinery and processes.
Thai BOI company that offer competitive incentives in the region. BOI has developed an incentive program to attract investors. Foreign companies that work in the designated districts of Thailand are eligible to enjoy a 17% personal income tax rate. This is among the lowest rates in the ASEAN region. The incentive package includes tax holidays of up to eight years and five years of tax reduction. In addition to tax breaks the government provides a one-stop-shop center for foreign investors, which eases the process of applying by providing helpful information and permits. Additionally, the Board of Investment has prepared special investment incentives specifically for investors in the Eastern Special Development Zone, which has been approved in principle and promoted by the government.
BOI approved measures to boost investments in specific industries and also expanded its program for digital technologies. The new measures are designed to encourage foreign investments and assist Thailand increase its industrial competitiveness, overcome its resource constraints and explore new business opportunities. Thailand’s foreign investments are lower than other countries in the region. In the list of initiatives approved by the BOI among the most important is a 50% corporate income tax exemption for five years for projects that incorporate the latest digital technologies. To benefit from this incentive, a project must invest 1 billion baht within the first twelve months following its approval. This tax incentive will be available from the 4th of January 2021 until December 2021.