Thailand is known for its wonderful tourist spots and rich culture. It is also a good place for people planning to open a business abroad. In fact, there are many small firms now enjoying a great return due to the wider market and low cost of living in Thailand. Perhaps one of your dreams is to extend your target audience which is possible in the city.
The next thing to consider is to find a company registering a BOI company in Thailand. This is a wise decision regarding the number of benefits likely to get from foreign investors. Apart from nice people and workspaces, business ideas will eventually emerge and turn into higher profits within a short period.
Finish reading this post to begin running a business in Thailand through BOI assistance. Then, you will know how to protect your capital and enjoy other incentives.
How Does BOI Work?
Although non-residents can do business in Thailand, it still varies from running a local enterprise. Some parts would be strange to foreign entities that may put investments at risk. However, government agencies aim to help new entrepreneurs to invest in proper places.
To compete with the locals is not that easy for foreign entities, especially in Thailand. Many factors had to be kept in mind like the issue that Thais must own a majority of shares over foreign investors. Hiring employees is also a struggle as work permits and visas play a significant role. It will be more difficult to gain customers as well if you are new in the business.
With all the possible constraints, the Board of Investment or BOI will cater to foreign investors. It permits foreign companies to obtain incentives over the long haul. The agency will loosen the rules to benefit new firms in Thailand. They are free of charge in providing opportunities for foreign entities to expand their target market. BOI offers a lot more privileges, including tax incentives.
This is Thailand’s way of encouraging new businesses to operate in the city. That is why innovative technologies continue to explore more trade ideas for better economic growth. These are the key roles of BOI you should know about.
Advantages of BOI Approved Company
Most limited companies in Thailand are BOI-certified. They can take full advantage of tax and non-tax incentives. Each one has to offer certain privileges once the company is approved.
- For Tax Incentives
Foreign entities can obtain corporate income tax exemptions that vary in amount according to the business field. Companies that utilize new technologies will enjoy eight years of exemption from income tax, while 5 and 3 years for developing and domestic entities, respectively.
There will also be deductions on import duties, dividend taxes, and other utility expenses.
- For Non-Tax Incentives
Apart from the huge deduction on the overall costs, BOI may permit foreign entities to hire more skilled workers. Land ownership is another thing that requires extra grind in Thailand but is permitted for BOI certificate holders.
Non-tax incentives likewise give alien entities the freedom to remit foreign currency with added protection against rivals.
Other Benefits That Do Not Depend On Industries
- Machinery Importation
- 100% Foreign Ownership
- Capital Flexibility
- Getting Work Permits
- Tax Exemptions
Application For BOI
BOI is designed to assist foreign companies and is responsible for the approval of the businesses to convey awesome incentives. Here are things to consider when applying for BOI promotion in Thailand:
- Business Planning
The very first thing to do is to create a business plan with cost estimates for three years. It should be well-documented together with employee details and salary. This will help you set expectations of how the business would produce income within a specific timeline.
- Amount of Shares
BOI has the right to determine the amount of shares of a foreign entity since it is also composed of Thai employees. A 100% foreign business may take place, however, if it begins as a collaboration, the company could be assigned to Thailand shortly. The job of BOI is to protect foreign entities from possible expenses during the transfer.
- Identify Business Categories
BOI knows a certain industry that would fit your business plans. The main reason why approvals take time is that finding the right sort of business can be hard. Additionally, BOI prevents the chance of foreign investors getting rejected and the need to resubmit applications.
- Hire a Lawyer
The application process will last for a minimum of three months. It is not complex because the documents are written in English and also BOI officers can understand and speak English. However, it is still best to work with a lawyer to better impress BOI with well-formulated documents. This will also speed up the process.
- Meeting With BOI Team
After settling all the paperwork, there will be sorts of meetings to have a clear idea about the proposal. It comes with an interview on which BOI will base their decisions. Then, a company creation shall proceed with at least 25% of the capital being transferred to the bank account.
Looking for a company registering a BOI company in Thailand must be your top priority. Experts will journey with you from the beginning to the end of the company’s creation. They shall lead you to the correct industry that fits your interests.