Establishing a company under the Board of Investment (BOI) promotion in Thailand offers several advantages compared to forming a Thai Limited Company (also known as a Thai Private Limited Company or Thai LLC). Here are some key benefits:
- Tax Incentives: BOI-promoted companies are eligible for various tax incentives, including corporate income tax exemptions or reductions for a certain period. These tax benefits can significantly lower the operational costs and improve the overall profitability of the business.
- Import Duty Exemptions: BOI-promoted companies may enjoy import duty exemptions or reductions on machinery, raw materials, and other imported goods necessary for their operations. This can lower production costs and enhance competitiveness.
- Work Permit and Visa Privileges: BOI-promoted companies may have easier access to work permits and visas for foreign employees, facilitating the recruitment of skilled international talent.
- Ownership and Shareholding: While Thai Limited Companies typically require at least 51% Thai ownership, BOI-promoted companies may have more flexibility in foreign ownership and shareholding structures, depending on the industry and promoted activities.
- Streamlined Processes: BOI offers streamlined administrative processes for company registration, work permits, and other regulatory requirements, reducing bureaucratic hurdles and saving time for business owners.
- Investment Promotion Support: BOI provides investment promotion support, including assistance with market research, business matching, and access to investment incentives and privileges. This support can help companies navigate the local business environment and accelerate their growth.
- Industry-Specific Incentives: BOI offers industry-specific incentives tailored to promote certain sectors, such as manufacturing, technology, healthcare, and renewable energy. These incentives may include additional tax benefits, land ownership rights, or R&D grants.
- Enhanced Credibility: Being BOI-promoted can enhance the credibility and reputation of a company, both domestically and internationally, signaling commitment to quality, innovation, and sustainable business practices.
It’s essential to note that while BOI promotion offers significant benefits, it also comes with specific obligations and compliance requirements that businesses must fulfill to maintain their promoted status. Additionally, the suitability of BOI promotion depends on the nature of the business, its long-term objectives, and the regulatory environment in Thailand. Therefore, it’s advisable to consult with legal and financial advisors to determine the most appropriate structure for your business in Thailand.
For more information, please refer to: https://unionspace.co.th/setup-boi-company-thailand/
