Has the BOI Application process changed after COVID-19?

The most unacceptable aspect which the pandemic brought with it was restrictions in mobility. The trend is still continuing as COVID-19 is not over yet. It is creating disrupting perils in business flow across the world. For this reason, various legal process and application procedures have changed worldwide, including BOI Application in Thailand.

So are you thinking to start a business in Thailand? For this, the BOI application is mandatory for various range of investment benefits. Before we discuss the changes in the BOI application process in Thailand, let us know about the benefits of the same.

Benefits from BOI Application in Thailand for Foreigners

The Board of Investment (BOI) always extends a welcoming gesture for foreign investors in Thailand. The board keeps on updating their schemes and policies to enhance the benefits of foreign investors. Added to the free-and-fair trade policies, these BOI schemes makes Thailand a dream destination for investors.

By investing in Thailand with BOI approval, you can get benefits like – 

1. For up to eight years, you may be free from paying taxes.
2. In addition, you will benefit from lower corporate taxes.
3. The majority of foreign enterprises and firms importing machinery and raw materials may face high import tariffs. Companies who seek and are approved for a BOI are given the ability to pay lower import tariffs.
4. The BOI promotion will also help you to reduce the costs of research and development.
5. Foreign enterprises that register with the BOI are excluded from certain production and export costs.

These were the tax benefits. Apart from these, there are non-tax benefits like – 

1. Foreign investors who do not register their companies with Thailand’s BOI can only own 49 per cent of the company’s shares. Whereas, registering with BOI gives them 100% ownership of the company’s shares.
2. You will be eligible for visas and work permits if you promote your company at BOI.
3. Foreigners are not permitted to own land in Thailand under Thai law. Land can be owned by foreign firms in Thailand if they have obtained BOI registration. Section 27 of the Investment Promotion Act of 1977 allows for this.

As we are talking about changes in the BOI application process, you should know that there are changes in the benefits as well. Additionally, BOI Thailand has expanded the scope of benefits for foreign investors. You can learn more about it from one of our previous published blogs.

Changes in BOI Application in Thailand Now

To start with, we must know about the change in the perspective of the Royal Thai Government on foreign investment. Moreover,  Government and BOI have increased the scope of business for foreign investors. The reason behind this is their intention to cope up with the economic retardation due to COVID-19.

Furthermore, we can outline the change in perspectives of the government and BOI as follows – 

1. BOI is now more focused on the BCG Model Economy and wants more foreign investment in related industries.
2. The Board is targeting projects focused on Sustainable Development Goals (SDG) with greater involvement of foreign investors.
3. The above two models are the new formulation to grant foreign investors special tax deduction and incentives.
4. The BOI visualizes Innovation, Creativity and Technology as the greatest prospects for revenue yielding industries.

Therefore, for greater chances for approval of your BOI application in Thailand, make sure that your project has the following attributes:

1. Your project is relevant to the Agriculture and Farming, Biotechnology, Medicines and Clinical Technology or Tourism industry. These are the four major target industries of Thailand under the BCG Economy model.
2. Your business idea promotes creativity, innovation and technology in the target industries.
3. Your company must be able to generate enough income opportunities for Thai Citizens.

These were the changes in the perspective of the BOI towards foreign investment. Additionally, you have to make sure that your investment plan in Thailand is in compliance with these.

Your Take!

As far as the BOI application process is concerned, mostly it is the same as it used to be in normal provisions. However, modifications in the process are as follows:

1. Now you can apply for BOI Registration in remote mode. This means you can seek BOI promotion by sitting in your own country.
2. You can use Power of Attorney and allot juristic powers to any person in Thailand who can take care of your company formation process. 

You should know that before COVID-19 also, there was a requirement of the involvement of Thai citizen for company formation for foreigners. So is now as well. Therefore, you must have a trustworthy and like-minded Thai acquaintance in your company. 

Along with all these, the most important resource you need is local Thai legal guidance. Premier law firms like Konrad Legal can extend you legal assistance and guidance in the BOI application process. All you need to do is to write us at [email protected] to avail of a free consultation session.