BOI Thailand: Requirement & Procedure - Juslaws
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BANGKOK OFFICE

bangkok@juslaws.com
+66 2254 4117

PHUKET OFFICE

phuket@juslaws.com
+66 7630 4353
PRACTICE AREAS
Board of investment

Requirement & Procedure

Depending on your business areas, our team of Lawyers will represent your project and explain details it to the BOI officer. However, proposed projects must develop competitiveness in the agricultural, industrial and services sectors in order to be approved by BOI officer.

General qualifications as per BOI request

The value-added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, all of which must have value – added of at least 10% of revenues.

Modern production processes must be used.

For a concession project and the privatization of a state enterprise project, the Board’s criteria shall be based on the Cabinet’s decisions dated May 25, 1998 and November 20, 2004.

Projects that have investment capital of 10 million THB or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 certification or similar international standard certification within 2 years from the full operation start-up date, otherwise the corporate income tax exemption shall be reduced by one year.

The state enterprise investment projects under the Capital of Public Enterprise Act, B.E. 2542, will not be granted for concession if the project is operated by private sector. The project need to be transferred to be state-owned enterprise project in order to receive an investment promotions. The state need to submit project approval form to BOI for a consideration before start bidding with private company. During an auction, there must be a clear announcement on private’s privileges. Normally, BOI will not promote investment project if p0rivate sector need to pay compensations to the state except those compensation is reasonable for an investment project.

For state enterprise projects that are owned, operated and rent by private sectors, the Board will use normal criteria for project approval.

For the privatization of state enterprise projects, after privatizing from state enterprise, the limited companies should set appropriate budgets in order to ask for the Board’s investment promotion under the Capital of Public Enterprise Act, B.E. 2542. In case of expanding projects, the limited company will be granted only parts of expansion under normal promotion incentives.

Environmental Protection

Adequate and efficient guidelines and measures to protect environment quality and to reduce environmental impact must be installed. The Board will give special consideration to the location and pollution treatment of a project with potential environmental impact.

Projects or activities with type and size that are required to submit environmental impact assessment reports must comply with related environmental laws and regulations or Cabinet resolutions.

Project located in Rayong must comply with Office of the Board of Investment Announcement No. Por 1/2554 dated May 2, 2011, on industrial Promotion Policy in Rayong Area.

Capital to be approved under the BOI investment in Thailand

The minimum capital investment requirement of each project is 1 million THB (excluding cost of land and working capital) unless specified otherwise on the list of activities. As for knowledge-based services, the minimum capital investment required is based on the minimum annual salaries expense specified in the list of activities eligible for investment promotion.

For newly established projects, the debt-to-equity ratio must not exceed 3 to 1.

Expansion projects shall be considered on case-by-case bases.

For projects with an investment value over 750 million THB (excluding cost of land and working capita) the project’s feasibility study must be submitted with details as specified by the Board.

Consideration of Investment Promotion Application and timeframe.

Project’s value ≤ 200 million or ≥ 1 million THB – 40 working days

Project’s value ≥ 200 million but ≤ 750 million THB – 60 working days

Project’s value ≥ 750 million THB – 90 working days.

What Documents are required to apply for BOI?

Required document and information for applying BOI incentives

1. Corporate documents i.e. Affidavit, Shareholder’s list, Memorandum of Association, Financial Statement (in case the company has already established);

2. Copy of passport or Thai identification card of director of the tentative company (in case the company has not yet established);

3. Finances and Investment plan;

4. Explanation about scope of business;

5. Type and size of business;

6. Process;

7. List of machinery, tool, equipment, computer and software which will be used for this project; including country of origin, quantity and value;

8. Environment Protection Plan;

9. Employment details; including position, number and nationality;

10. List of major customers and business relation;

11. Marketing plan;

12. Corporate documents i.e. Affidavit, Shareholder’s list, Memorandum of Association, Financial Statement (in case the company has already established);

13. Operation plan, including building/operation site, estimated revenue;

14. Estimated revenue and expense of the project for the first 3 years of operation;

15. Merits of the project (if any);

16. Brochures of the company and affiliates;

Please be noted that the BOI officer may request further document as deemed appropriate. Furthermore, the applicant is required to join a presentation and interview session so that the officer would ask and interview about this project in deep details.

How is procedure to apply BOI?

Procedure to apply BOI which shows how we work and submit your application to BOI office
Guide chart
The Juslaws & Consult’s team lawyers provides a full range of support for the clients opening and starting their business under BOI – Board of Investment promotion in Thailand. The team of corporate lawyers in dedicated and always ready to deliver the best tailored solutions for your businesses.
Our team consists of professional experts work closely with BOI officers and has 12 years of experience working with BOI. Prestigious directories and legal publications highlight the preeminence of Juslaws’ corporate law practice and its professionals in their yearly rankings. Since our team of lawyers received accurate information from clients, we will submit and work our best during the process to ensure our clients can get BOI approval to start the business and success in Kingdom of Thailand.

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CHRISTIAN MOSER

Partner

christian.moser@juslaws.com

+66 2254 4117

CHONTICHA LEKKHAM

Senior Lawyer

chonticha@juslaws.com

+66 2254 4117

NITHIRAT CHAYAAPICHAT

Senior Associate

nithirat@juslaws.com

+66 7630 4353