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Board of Investment (BOI) Services
in Thailand with Thepphong Law

Board of Investment (BOI) Services

The Thailand Board of Investment (BOI) is a government agency under the Office of the Prime Minis-ter, responsible for promoting foreign and domestic investment in targeted industries. The BOI provides tax and non-tax incentives to encourage investment that contributes to Thailand’s economic and tech-nological advancement.

Foreign investors who obtain BOI promotion can benefit from corporate income tax exemptions, land ownership rights, relaxed foreign business restrictions, and streamlined visa and work permit pro-cesses. This article explains the legal framework, eligibility criteria, incentives, and application process for BOI promotion in Thailand.

Foreign investors who obtain BOI promotion can benefit from corporate income tax exemptions, land ownership rights, relaxed foreign business restrictions, and streamlined visa and work permit pro-cesses.

Legal Basis: The Investment Promotion Act B.E. 2520 (1977)

The Investment Promotion Act B.E. 2520 (1977) (amended by subsequent Acts) grants the BOI the au-thority to promote investment, offer incentives, and regulate investment applications.

Under Section 16, the BOI can provide incentives to projects that:

  • Contribute to national development, economic growth, and competitiveness
  • Utilize advanced technology or innovation
  • Promote sustainability and environmental responsibility
  • Enhance workforce skills and local employment

 

The BOI classifies investment projects into priority sectors that align with Thailand’s economic policies under the Thailand 4.0 initiative and the Eastern Economic Corridor (EEC) development plan.

Key Incentives Provided by the BOI

The BOI offers two main categories of incentives :

  • 1. Tax Incentives

Under Section 31 of the Investment Promotion Act, BOI-promoted companies may receive:

  • Corporate income tax (CIT) exemptions for 3 to 13 years, depending on the industry and pro-ject location.
  • Exemptions or reductions of import duties on machinery and raw materials used for produc-tion.
  • Additional tax benefits for projects in Special Economic Zones (SEZs) or high-tech industries.
  • 2. Non-Tax Incentives

Under Sections 27–30, BOI-promoted companies may also receive:

  • 100% foreign ownership, even in sectors restricted under the Foreign Business Act B.E. 2542 (1999).
  • Land ownership rights for foreign-invested businesses (normally restricted under the Land Code).
  • Work permit and visa privileges for foreign executives, specialists, and their families.
  • Permission to remit foreign currency abroad without restrictions.

Eligible Business Sectors for BOI Promotion

BOI promotion is sector-specific, prioritizing industries that align with Thailand’s long-term economic development goals. The key eligible sectors include:

  1.  Advanced Manufacturing and Digital Economy – Aerospace, robotics, smart electronics, and software development
  2. Healthcare and Biotechnology – Medical devices, pharmaceuticals, biotechnology, and digital health
  3. Renewable Energy and Environmental Protection – Electric vehicles (EVs), waste management, green energy production
  4. Agriculture and Food Innovation – Smart farming, food processing, and organic products
  5. Logistics and Special Economic Zones – Logistics hubs, high-tech supply chains, and warehous-ing
  6. Eastern Economic Corridor (EEC) Projects – High-value industries in Chonburi, Rayong, and Chachoengsao
  • Foreign businesses that do not fall under BOI-promoted categories may still be eligible for investment support through alternative programs such as the Industrial Estate Authority of Thailand (IEAT) or Spe-cial Economic Zones (SEZs).

BOI Application Process: Step-by-Step Guide

Foreign investors must submit a BOI promotion application detailing their proposed investment. The process involves four main steps:

Step 1: Application Submission

The applicant must submit a business plan to the BOI One-Stop Service Center in Bangkok or through the BOI E-Submission System. Required documents include:

  • Company profile and shareholder structure
  • Business plan, including investment capital, technology, and employment details
  • Estimated financial projections and revenue forecasts
  • Description of expected contributions to Thailand’s economy

Step 2: BOI Evaluation & Approval

  • The Foreign Business License (FBL) is a key regulatory requirement for foreign investors in Thailand seeking to operate in restricted business sectors. While obtaining an FBL can be complex, careful planning and legal guidance can improve the chances of approval. Investors should consider alternatives such as BOI promotion or strategic structuring to maximize business opportunities in Thailand.

The BOI evaluates applications based on:

  1. Economic Contribution – Job creation, local supplier partnerships, and value-added production
  2. Technology Transfer – R&D investment, innovation, and workforce skill development
  3. Capital Investment – Minimum investment thresholds vary by industry, with capital-intensive projects prio

Approval timelines depend on the project size:

LESS THAN 200 Million Baht Investment

LESS THAN 200 Million Baht Investment

LESS THAN 200 Million Baht Investment

Approved by the BOI Secretary-General

within 40 working days

Requires BOI Board approval

within 60 working days

Requires Cabinet approval

may take 90+ days

Step 3: Company Registration & Licensing

Once approved, the foreign investor must:

  1. Register the company under Thai law (if not already established).
  2. Apply for business operation licenses (if required).
  3. Open a corporate bank account and inject the required minimum registered capital.

Step 4: Compliance & Reporting

BOI-promoted companies must comply with reporting obligations, including:

  • Submitting annual performance reports to maintain tax incentives.
  • Ensuring employment and technology transfer commitments are fulfilled.
  • Complying with accounting, labor, and environmental regulations.

For professional legal advice on applying for an FBL in Thailand, contact our law firm for expert guidance.

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BOI vs. Foreign Business License (FBL): Key Differences

Many foreign investors compare BOI promotion with the Foreign Business License (FBL) under the Foreign Business Act. The key differences are:

FeatureBOI PromotionForeign Business License (FBL)
Foreign Ownership
✔100% allowed

Generally limited to 49%
Restricted Sectors
✔Can operate in restricted sectors

Requires case-by-case approval
Tax Benefits
✔CIT exemptions for 3-13 years

✖No tax benefits
Import Duty Exemptions
✔Available
✖Not available
Visa & Work Permit ProcessExpedited processingStandard processing
Approval AuthorityBOI (Prime Minister’s Office)Ministry of Commerce
  • The difference between BOI Promotion and a Foreign Business License (FBL)

comes down to foreign ownership rights, tax incentives, and regulatory approvals. BOI Promotion allows 100% foreign ownership, corporate income tax (CIT) exemptions for up to 13 years, and import duty waivers, making it the best option for eligible businesses. In contrast, an FBL generally limits foreign ownership to 49%, requires case-by-case approval for restricted sectors, and does not provide tax benefits. If your business qualifies, BOI Promotion offers greater advantages, but for industries outside BOI incentives, an FBL is required to operate legally in Thailand.

Legal Considerations for Foreign Investors

Foreign investors seeking BOI promotion should consider:

  • Minimum capital requirements – BOI applicants must meet industry-specific investment thresholds.
  • Local employment obligations – Some industries require minimum Thai workforce quotas.
  • Regulatory compliance – BOI projects must follow environmental, labor, and corporate gov-ernance laws.
  • Licensing overlaps – Certain industries may require additional permits beyond BOI approval.
  • The Thailand Board of Investment (BOI) promotion is one of the most attractive legal mechanisms for foreign investors seeking business opportunities in Thailand. By providing tax incentives, foreign ownership privileges, and regulatory support, the BOI helps companies establish a competitive pres-ence in the Thai market. Foreign investors interested in BOI promotion should seek legal assistance to navigate the application process, compliance requirements, and strategic structuring of their investment in Thailand.

For expert guidance on BOI applications and business setup in Thailand, contact our law firm today.

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Why Apply for BOI Promotion and Who Needs It?

BOI (Board of Investment) promotion offers foreign businesses a competitive edge in Thailand by providing key advantages:

  • Tax Benefits: Access to exemptions and reductions in corporate income tax, import duties on machinery, and raw materials—leading to cost savings and improved profitability.
  • Simplified Procedures: Streamlined application processes for visas, work permits, and land ownership for foreign executives, minimizing bureaucratic challenges and fast-tracking business operations.
  • Sector Access and Ownership Flexibility: Foreign investors can operate in restricted sectors with enhanced ownership rights and compliance ease, helping companies build a firm market presence.

Why Apply for BOI Promotion and Who Needs It?

Tech and Innovation Companies: Benefit from incentives promoting advanced technology, research, and sustainable practices.

  • Foreign Investors: Seeking tax relief, import duty exemptions, and a simplified entry into the Thai market will find BOI promotion advantageous.
  • Businesses in Growth Sectors: Companies targeting key economic development areas for expansion will gain from fewer regulatory restrictions.
  • Cost-Sensitive Enterprises: Firms focusing on cost efficiency and streamlined operations will see reduced overhead with BOI support.

What Happens If You Don’t Apply BOI?

  • Increased Tax Liabilities: Higher corporate taxes and standard import duties, impacting profit margins.
  • Complex Visa and Permit Processes: Foreign staff work permits may become slower and more cumbersome without BOI privileges.
  • Limited Sector Access: Non-BOI companies face industry restrictions, limiting business opportunities and market penetration.

By applying for BOI promotion, companies ensure compliance, cost-efficiency, and gain a strategic foothold in Thailand’s rapidly evolving business landscape.

Thepphong Law is here to guide you seamlessly through the process, maximizing benefits while minimizing challenges.

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Eligibility Criteria for BOI Applications

To qualify for BOI incentives, businesses must adhere to specific standards that align with Thailand’s strategic goals for economic and technological development:

  • Target Sectors
    • Eligible sectors often include advanced manufacturing, technology, renewable energy, agriculture, logistics, and healthcare.
    • Companies involved in innovation, sustainable development, or those contributing to industry modernization are prioritized.
  • Minimum Investment Requirements
    • A minimum capital investment is required, typically excluding land and working capital.
    • The exact investment amount may vary based on the sector and project scale.
  • Technology, Skills Transfer, and Innovation
    • Companies are encouraged to introduce new technologies, improve local skills, and engage in R&D.
    • Projects that involve technology transfer or innovative solutions receive favorable consideration.
  • Local Employment and Training
    • Hiring local staff and contributing to skills development is encouraged.
    • Businesses committed to training and development of the local workforce are prioritized.
  • Environmental Standards and Sustainability
    • Projects must comply with local and international environmental guidelines.
    • Initiatives focusing on sustainable practices and environmental responsibility are favored.
  • Promoting Regional and Economic Development
    • Businesses that contribute to the development of underdeveloped regions or enhance economic growth receive additional support.
    • Companies are incentivized to establish operations in key regions beyond major cities.
  • With Thepphong Law’s guidance, your business can navigate these requirements smoothly, ensuring a well-prepared BOI application that meets all necessary criteria. This service not only positions your company for success but also aligns with Thailand’s vision for a forward-thinking and competitive economy.

Ongoing Compliance and Reporting

To maintain BOI status and continue receiving investment incentives, companies must strictly follow compliance and reporting standards. This includes :

  • Annual Audits: Submitting accurate financial statements and business updates to BOI.
  • Activity Monitoring: Keeping BOI informed on project progress, expansions, or changes.
  • Compliance Reviews: Adhering to BOI conditions, including local employment and technology transfer.
  • Documentation Submissions: Periodically providing necessary documents like machinery imports and tax records.

Additional Services Related to BOI

Thepphong Law offers comprehensive support for businesses seeking BOI promotion, beyond the basic application process :

  • Post-Approval Assistance: Guidance in maintaining compliance with BOI requirements, including annual reporting and audits.
  • Permit and Visa Support: Assistance in acquiring work permits and visas for foreign staff.
  • Legal Compliance Reviews: Ensuring that your business activities align with BOI conditions for continuous eligibility.
  • Industry-Specific Advice: Tailored guidance for navigating sector-specific BOI requirements.

 

These services aim to maximize your benefits and maintain compliance, ensuring long-term success in Thailand.

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FAQ

The BOI (Board of Investment) is a Thai government agency that provides incentives to encourage foreign investment in key sectors. These incentives include tax holidays, reduced import duties, and streamlined processes for visas and work permits, making it easier for foreign companies to establish operations in Thailand.

Companies in sectors like technology, advanced manufacturing, renewable energy, healthcare, agriculture, and logistics should consider BOI promotion. Businesses seeking tax benefits, simplified administrative processes, and greater flexibility in foreign ownership are prime candidates.

BOI approval offers substantial tax exemptions, duty reductions, streamlined visa and work permit procedures, and access to restricted sectors with enhanced foreign ownership rights. It simplifies operations and reduces overhead costs, allowing foreign businesses to thrive in the Thai market.

To qualify, companies must meet minimum investment thresholds, comply with environmental standards, prioritize technology transfer, hire and train local employees, and align with Thailand’s strategic goals for economic and technological development. Each industry may have additional specific criteria.

The BOI prioritizes industries that drive innovation and economic growth, such as technology, advanced manufacturing, healthcare, agriculture, green industries, and tourism. Projects that contribute to sustainable practices, regional development, or skills training are particularly favored.

Key documents include a comprehensive business plan, financial records, technical specifications, investment breakdown, and legal company documents. Detailed descriptions of technology, investment sources, and project timelines are also necessary to meet BOI standards.

The process involves initial consultation, eligibility review, document preparation, application submission, BOI review, and post-approval compliance. Thepphong Law handles each step, ensuring documentation is precise, regulations are met, and the process is seamless for foreign investors.

Without BOI approval, companies face higher corporate taxes, standard import duties, more complex visa and work permit processes, and limited access to restricted sectors. This can lead to increased costs and more challenging market entry in Thailand.

Thepphong Law provides end-to-end assistance, from determining eligibility to document preparation, application submission, follow-ups with the BOI, and post-approval compliance. They ensure that each business meets all criteria for BOI approval, maximizing the benefits and reducing legal risks.

Companies must submit annual financial audits, monitor project activities, adhere to BOI conditions (like local employment), and regularly report updates to the BOI. Proper documentation must be maintained to continue enjoying the benefits of BOI approval.

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