Registering a company under the Thailand Board of Investment is beneficial for foreign entrepreneurs. It enables them to receive more investment incentives than companies operating within normal industrial estates. This includes exemptions from corporate income tax and reductions of taxes on dividends paid to shareholders.
Non-tax incentives include reduced or no import duties on raw materials and lower costs of electricity, transportation, water supply and infrastructure installation. These perks are granted for varying periods of time.
A BOI-promoted company offers a lot of benefits and privileges for foreign business owners. However, it can also be very time-consuming and frustrating. It is important to follow all of the rules and regulations for the process. If you don’t, you could end up having to visit the BOI several times and re-submit your forms.
Besides reserving the company name, foreign promoters should prepare all necessary documents like MOA, application form and list of shareholders, declaration of company office and address, and more. They should use the company stamp when signing all the documents.
After the company is registered, it must submit the documents to the BOI within six months. The BOI officer will then review the documentation and interview the company. Once the company is approved, it will receive a BOI certificate. In addition, the company can benefit from various perks, including exemptions on import duties on machinery and raw materials. This will help it compete with businesses in the international market and grow its business in Asia.
If you want to register a company under the BOI, you must meet certain requirements. You must submit your documents and provide proof of funds. In addition, you must pay a prepaid tax of about half of the estimated annual profit. This money will be credited against your company’s future tax liability.
The BOI offers a wide range of benefits and privileges for companies that have been approved. These include 100% foreign ownership, reduced work permit and visa requirements, and other business benefits. In addition, a BOI-promoted company can deduct the cost of raw materials and machinery.
In order to qualify for BOI benefits, your company must be registered in Thailand and meet the requirements for each sector. Additionally, it must be owned by at least three people. Moreover, the shareholders must be natural persons and their details must be disclosed on a public file. The BOI will evaluate your application and notify you of their decision within seven days.
The registration process for a BOI-promoted company is quite time-consuming and there are several costs associated with the registration. These include legal fees and costs associated with office space, hiring staff, buying machinery, and more. These costs can easily add up to tens of thousands of dollars, which makes the process expensive and time consuming.
The BOI provides tax and non-tax incentives for companies that operate in targeted sectors of the economy. These benefits include up to 13 years of corporate income tax exemption, 100% foreign ownership, and work permit and visa help.
BOI-promoted companies are also exempt from paying import duties on raw materials and equipment. They can also receive deductions on transportation, electricity, and construction costs. In addition, they can hire foreign workers without meeting the four-to-one quota. The company can even own land in Thailand under certain conditions. Moreover, the company can transfer foreign currency abroad. All of these benefits make a BOI-promoted business an attractive investment option for investors.
A company registered under the BOI gets a whole host of benefits. It is not only able to enjoy tax exemptions but also enjoys a number of non-tax benefits such as streamlined visa applications for foreign workers and waivers on foreign land ownership restrictions.
A Memorandum of Association must be prepared which should include the company name, address, business objectives, share capital, types of shares (ordinary and preferred), names of promoters (there should be at least 3 promoters) and their contact details. A copy of the MOA must be submitted to the registrar.
The amount of taxes a company pays depends on the type and value of its investment in Thailand. The BOI offers tax exemptions and deductions for foreign investments in certain promoted activities such as factories, electronics, pharmaceuticals, regional financial centres, and more recently digital businesses. Other benefits of being a BOI-promoted business include reduced immigration fees and relaxed rules for hiring skilled foreign employees.