Why BOI Registered Company and Not Private Limited Company in Thailand?
Before we go into any detailed analysis as to why a BOI company is more-preferable than just a private limited company it is important to look at their definition;
Private Limited Company: Sure, it is one of the most popular forms of business structures in Thailand. Its key elements are;
• Shareholders’ liability is limited to the amount left unpaid on the shares
• There is a gap between the owners and management
Under Thai Civil and Commercial Code, Section 1096, ‘A limited company is a kind of company, wherein a capital is divided into equal shares.
Board of Investment Registered Companies: Though not much people are aware of them, the benefits are manifold. Now, what is Board of Investment or rather who is? Well, Thailand’s Board of Investment is a Government agency that promotes foreign investment in Thailand by giving information and services plus incentives to the foreign investors.
To know exactly why you should register your company under BOI Thailand you must be aware of the many privileges foreigners are getting. They are mentioned below;
Tax Benefits
- Exemption of import duties on machinery and essential materials
- 0% tax for the first 8 years
- Exemption of CIT on dividends and profit obtained from the promoter activity
- 50% CIT reduction
- Double reduction in the costs of water supply, transportation and electricity
- Import duty exemption on materials that are imported for manufacturing of exports
Non-Tax Benefits
- Permission to enter Thailand for studying the various investment opportunities
- Permission to let in skilled employees to the Kingdom
- Permission to send money in foreign currency
- Permission to possess a land
And to cite some practical examples if you look back, BOI has offered some incredible privileges to the investors, especially in the year 2015-16. In fact, the foreign investors had received a double deduction on depreciation expenses in order to obtain assets such as computer software, buildings, equipment, and tools. Also, if you are seeking investment in the Thailand New Growth Engines you will receive even more benefits.
Well, to sum-up one cannot overly promote any of such types of companies. It is for you to see, judge and decide. So, think wisely before you invest.
If you need to know more about BOI-registered companies or any other business entities in Thailand we will be delighted to have you assisted.