BOI Promotion

Activities Eligible For Promotion Section 1

Activities Eligible For Promotion Section 2

Activities Eligible For Promotion Section 3

Activities Eligible For Promotion Section 4

Activities Eligible For Promotion Section 5

Activities Eligible For Promotion Section 6

Activities Eligible For Promotion Section 7

Activities Eligible For Promotion Section 8

List One Annexed to Foreign Business Act, B.E. 2542 (1999)

Thai nationals must hold shares not less than 51% of the registered capital.

List Two and Three Annexed to Foreign Business Act, B.E. 2542 (1999)

There are no equity restrictions for foreign investors as not otherwise specified in other laws.

1. The added-value of the project must not be less than 20% of revenues, except for projects in agriculture and for agricultural products, electronic products and parts, and coil centers. All of which must have an added-value of at least 10% of revenues.
2. Modern production processes must be used.
3. New machinery must be used.  Imported used machinery will be considerated according to the BOI conditions
4. Projects that have investment capital of 10 million baht or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 or similar international standard certification within 2 years from the full operation start-up date, otherwise the corporate income tax exemption will be reduced by one year.

The Board’s criteria shall be based on the Cabinet’s decisions dated May 25, 1998, and November 30, 2004, as follows:

1. An investment project of state enterprise according to the 1999 State Enterprise Corporatization Act shall not be entitled to investment promotion.
2. For Build-Transfer-Operate or Build-Operate-Transfer projects, the state agency that owns the project must submit its project to the Board for consideration prior to any invitation to bid, and bidders should be informed of any promotional privilege entitled to them, prior to the bidding. In principle, the Board will not promote a project where the private sector pays the state for a concession, unless such payment is deemed reasonable in comparison to what the state has invested in the project.
3. For Build-Own-Operate projects, including those leased to or managed by the private sector, which in return pays rent to the state, the Board shall use normal criteria for investment promotion.
4. For the privatization of state enterprises according to the 1999 State Enterprise Corporatization Act, in case of expansion after the privatization, only the expansion investment should be eligible for promotion. Incentives should be granted according to normal criteria for investment promotion.

1. The minimum capital investment requirement of each project is 1 million baht (excluding cost of land and working capital) unless otherwise specified on the list of activities eligible for investment promotion that is attached to this announcement.As for knowledge-based services, the minimum capital investment requirement is based on the minimum annual salaries expense specified in the list of activities eligible for investment promotion.
2. For newly established projects, the debt-to-equity ratio must not exceed 3:1.
3. Expansion projects shall be considered on a case-by-case basis.
4. For project with an investment value over 750 million baht (excluding cost of land and working capital) the project’s  feasibility study  must be submitted with details as specified by the Board.

1. Exemption of corporate income tax for up to 13 years (According to activity & conditions)
2. 50 percent reduction in corporate income tax for 5 years (only in special investment promotion zones)
3. Exemption of import duties on machinery
4. Exemption of import duties on raw or essential materials used in production for export
5. Exemption of import duties on raw or essential materials used in research and development purposes

1. 100% foreign ownership
2. Permit to own the land
3. Permit for foreigner to enter Thailand for the pupose of studying investment opportunities
4. Visa and work permit for expats and skilled workers
5. Permit to take out or remit money abroad in foreign currency

• Establish the company under Thai Law 
• The minimum capital investment is 1 Million THB (excluding cost of land and working capital)
• For knowledge-based businesses such as R&D activities, Software, Electronics Design, Engineering Design, and Creative Design must have salary expenses of specified personnel of at least 1.5 Million THB per year
• For newly established projects, the debt-to-equity ratio must not exceed 3 : 1
• For expansion projects shall be considered on a case-by-case basis

1. Set up 100% foreign company under Thai Law (at least 1-2 weeks)
2. Provide the estimated business plan for the next 3 years such as investment plan, scope of business, employment plan, estimated income and expenses etc. for BOI application submission (at least 1-2 months)
3. Review and correct the application and supporting documents by BOI (at least 1-2 months)
4. Make an appointment for the interview (at least 1-2 months)
5. Committee’s consideration and approval letter issuance (at least 1-2 months)
6. Accept the BOI approval (at least 1-2 weeks)
7. Obtain the BOI Certificate (at least 2 weeks)
8. Obtain the Foreign Business Certificate under BOI (at least 2 weeks)
9. Operate business immediately
10. Obtain the BOI incentives

Government fee for Foreign Business Certificate: 22,000 THB

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