The second wave of COVID has arrived, but it will have a smaller impact on Thailand’s companies than the first wave. It’s because of the Board of Investment’s (BOI) investor-friendly policies in the new standard. As a result, this article will assist you in creating a checklist for BOI Thailand company registration.
Stage I: Research and Gather all Information
Collect information and knowledge to boost your confidence in your business in Thailand. BOI Thailand Registration of your business needs a great deal of pre-startup research and market analysis.
Step 1: Know the Legal System of Thailand
As a foreign investor, you might be unfamiliar with Thailand’s legal system, laws, and protocols. But here’s where you’ll need to do some homework to get a better understanding of it. You can learn about the framework from freely available and open online tools. You can also consult with legal firms for Konrad Legal to assist you in the process.
Step 2: Know your Target Market
Either you can start an afresh business in Thailand or you can go for an expansion of your already existing business. But always try to penetrate the relevant market to help your business perform the best. This action is highly preferred in the New Normal in Thailand. BOI Thailand has announced special investment incentives and deductions for specific industries.
Step 3: Know the Business Structure in Thailand
You can form your company in Thailand in various registration and incorporation formats. It can be a Limited Liability Partnership, Private Limited Partnership or Thai Limited Company. There are other formats of business incorporation too in Thailand. But, in all cases, you must have a partner with the citizenship of Thailand.
Step 4: Know your Thai Partner Well
Until and unless you fall eligible under the Thailand-US Amity Treaty, you must have a partner for your business with Thai citizenship. If you are not from the United States, you will need a Thai partner. Therefore, take all the initiatives to know about the reputation, credibility and goodwill of your Thai partner.
These were the activities that you can carry out from your native region without moving into Thailand. Now the next stage is your preparation to fly to Thailand.
Stage II: Prepare to Move to Thailand
In the second stage of your checklist of required activities for BOI Thailand Registration, you must reach Thailand. To take this action, you have to undergo the following steps –
Step 1: Check your Eligibility to get Business Visa for Thailand
This step is very simple as you and your background must be abiding by the following conditions:
- You should not have any legal defaulting or absconding issues.
- There should not be any bankruptcy history.
- Have a job in Thai companies or be on a paid internship.
- Work in Thai educational institutions.
- Conduct business, e.g. short-term business visit upon an invitation by Thai business counterparts.
- You must be capable to invest in Thailand. It can be through ownership of a condominium, deposit in a Thai bank, or Thai government bond. The amount of face value should not less than 3 million THB.
Step 2: Check the Availability of Documents to get a Business Visa in Thailand
To apply for a Business Visa, you must have the following documents:
- Passport
- Duly filled application form
- Recent passport-sized photograph (4 x 6 cm)
- Proof of having sufficient finance
- Letter from your company stating your position, salary, tenure of employment and purpose of visits to the country
- Evidence showing correspondence with the business partners in Thailand
- Proof of financial status in case the applicant is self-employed
- Invitation letter from the trading partners
- Corporate documents including business registration and license. Secondly, list of shareholders, company profile, details of business operation and location. And finally, statement of Income Tax and Business Tax of the latest year and Value-added tax registration
- Copies of the company’s documents signed by the Board of Directors alongside the seal of the company
Step 3: Apply for Business Visa
It is the preliminary thing you need to do to reach Thailand. Depending upon your need, you must apply for any of the following types of Visa:
- B Visa (Non-Immigrant Business Visa) – Foreign nationals wanting to conduct business in Thailand.
- B-A Visa (Non-Immigrant Business Approved Visa) – Foreigners wishing to start a business in Thailand, or invest in a Thai business.
- IB Visa (Non-Immigrant Investment and Business Visa) – Foreign investors employed to work on investment projects under the regulations of the BOI.
To apply, you need to book an appointment with the Royal Thai Embassy in your region and submit the relevant documents in person.
Step 4: Wait for Approval and Fly to Thailand
Now you have to wait for the approval of your Visa application and issuance of your Business Visa. It is done by the Royal Thai Consulate of your country. The waiting time can be from 30 to 60 days. However, after receiving the Visa, you can fly to Thailand and commence your business set-up process.
Stage III: Go for BOI Thailand Registration
As you reach Thailand, you can proceed with the BOI registration process for your business.
Step 1: Apply for BOI Thailand Registration
You have to submit an application with details like the financial projection of your company. Your report should also state the estimated number of employees with proper evidence and supportive documents.
Step 2: Face Interview BOI Thailand Registration
Just after the submission of your initial paperwork is over at the BOI office, you need to appear for an interview at the BOI headquarters in Bangkok. The founder members of the company must be present in the meeting or interview. In the interview, they will inquire you about your business plans, estimated turnover and other facts related to your business.
Step 3: Approval of Your BOI Thailand Registration Application
If your company gets BOI approval, you can enjoy a minimum of 0% tax rate up to the first 8 years of your operations. This ratio, however, depends on the location and the category of your industry.
Step 4: Apply for Work Permit
A BOI approved company easily gets work permits to bring in foreign workers. The number can be negotiated with the authorities. If your company is into exporting machinery, then you can enjoy VAT exemption with BOI approval. Secondly, you are eligible if your company is supporting or funding research in any developmental institution in Thailand. In this case, you can enjoy additional 3 years of tax exemption.
Step 5: Apply for BOI Privileges
The privileges under the BOI can be obtained, if you have a registered capital of at least 10 million Baht. Your eligibility stands fit if you supervise associated enterprises in other foreign countries or its overseas branches to at least one country.
BOI Thailand Registration Privileges in the New Normal
Knowledge about the new privileges announced by the BOI is compulsory before applying for the same. To encourage foreign direct investment, the BOI has announced various new schemes which can help you to boost your Return on Investment as well.
The BCG Model
The Bio-Circular-Green Economy Model announced by BOI calls for foreign investments in industries of strategic importance. In fact, the industries include Agriculture and Farming, Medicine and Clinical Technologies, Biotechnology, Tourism and Creative Economy.
Specifically, you can get special additional incentives and tax discounts if your business belongs to the mentioned industries.
The SDG Initiative
Sustainability Development Goals or SDG initiative of the BOI aims in providing businesses in Thailand. BOI has planned to do so by restructuring the tax system. Indeed, it has announced various schemes and policies to restructure the debt repayment and credit facilities for businesses in Thailand.
Thailand Plus Package
The BOI announced the Thailand Plus Package covering comprehensive measures with investment acceleration incentives. It also covers fiscal measures supporting STEM manpower development, deregulation, and improved pre and post-investment services.
You must know that this package basically boosts investments in research, development and innovation projects. It allows privileges of up to double deduction in the taxes.
Wrapping Up!
Apart from the above-mentioned initiatives and privileges, BOI Thailand is having a long list of attractive bonuses for your business in Thailand. You can get to know about them from your Thai Partner. Still, for deeper and greater knowledge, you can initiate a consultation process with us. Mail us at [email protected].
