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Why the BOI License is Crucial for Foreign Investment in Thailand?
As Southeast Asia continues its ascent as a global hub for investment and innovation, Thailand has strategically positioned itself as one of the region’s most welcoming destinations for foreign capital. Through its Board of Investment, the Thai government provides a structured, transparent, and incentive-rich pathway for foreign entities to legally and securely establish operations within the country. Whether launching a manufacturing plant, setting up a regional headquarters, or developing cutting-edge services, securing a BOI License in Thailand is often prerequisite to long-term operational and legal success.
Thailand’s Board of Investment (BOI) License represents one of the most strategic legal instruments available to foreign investors aiming to establish or expand within Thailand. This governmental authorization not only facilitates market entry but also offers an array of legal and fiscal incentives to eligible investors under the Investment Promotion Act B.E. 2520 (1977). Incentives include tax exemptions, land ownership rights, and streamlined visa and work permit processes.
This article is intended for a legally-informed audience and will provide a detailed breakdown of the process to obtain a BOI license in Thailand. It will be structured around the official eight-step procedure, as outlined in the BOI’s guidelines.
Table of Contents
First Step in obtaining the BOI License in Thailand: Understanding BOI-Promoted Activities and Their Specific Conditions
Before initiating the BOI License in Thailand process, it’s crucial to properly ascertain the eligibility and suitability of your proposed business endeavor. The Thailand Board of Investment meticulously categorizes supported undertakings into numerous sectors, with every grouping possessing unique conditions and incentives.
Agricultural, Food, Biotechnology, and Medical Industries
- Eligible Activities: Cultivation and refining of agricultural commodities, biotechnological investigations and progressions, manufacturing of medical apparatuses and gadgets.
- Conditions to obtain the BOI License in Thailand: Projects must integrate sophisticated strategies and adhere to global benchmarks.
- Incentives: Up to 8 years of corporate income tax waiver without limitation, plus exemption of import tariffs on required machinery and equipment.
Machinery, Automotive, Electrical Appliances, and Electronics Industries
- Eligible Ventures: Production of automotive components, household appliances, and electronic modules.
- Conditions to obtain the BOI License in Thailand: Projects should prioritize advancement, energy efficiency, and environmental protection.
- Incentives: Corporate income tax exemption ranging from 3 to 8 years, subject to the project’s magnitude and technological prowess.
Metal, Material, Chemical, Petrochemical Industries, and Public Utilities
- Eligible Ventures for the BOI License in Thailand: Fabrication of progressive materials, specialized chemicals, and petrochemicals.
- Conditions to obtain the BOI License in Thailand: Compliance with ecological regulations and employment of modern production methods.
- Incentives: Corporate income tax waiver up to 8 years as well as import duty exceptions on essential resources and manufacturing requisites.
Digital, Creative Industries, and High-Value Services
- Eligible Ventures for the BOI License in Thailand: Software development, digital content generation, and high-value service contributions.
- Conditions to obtain the BOI License in Thailand: Projects must augment the digital economy and hire skilled experts.
- Incentives: Up to 8 years of corporate income tax exemption plus other non-fiscal incentives like land ownership rights.
Research and Development, and Targeted Core Technology Development
- Eligible Ventures for the BOI License in Thailand: R&D in biotechnology, nanotechnology, advanced materials, and digital technology.
- Conditions to obtain the BOI License in Thailand: Projects should prioritize pioneering concepts and the dissemination of knowledge.
- Incentives: 8 years of corporate income tax waiver without limitation, as well as additional deductions for research and development costs.
Public Utilities and Infrastructure
- Eligible Ventures for the BOI License in Thailand: Establishment of public utilities, mass transit networks, and logistics hubs.
- Conditions to obtain the BOI License in Thailand: Projects must satisfy precise infrastructure standards and acquire approvals from relevant governing bodies.
- Incentives: Corporate income tax exemption up to 8 years along with import duty exceptions on construction materials and equipment.
Environmental Protection and Conservation
- Eligible Ventures for the BOI License in Thailand: Waste handling, recycling, and renewable energy projects.
- Conditions: Projects must conform to ecological standards and contribute to sustainability.
- Incentives: Up to 8 years of corporate income tax exemption plus import duty exceptions on applicable machinery and technology.
Human Resource Development
- Eligible Ventures for the BOI License in Thailand: Launch of vocational training centers and educational institutions.
- Conditions: Institutions must offer programs aligned with industry demands and employ qualified personnel.
- Incentives: Corporate income tax exemption up to 8 years and other support measures.
Second Step in obtaining the BOI License: Submission of the Application via the E-Investment Promotion System
Once eligibility is confirmed, the investor must proceed to formally register the BOI License application utilizing the BOI’s online interface: the e-Investment Promotion System.
The BOI License in Thailand application must be filed using verified login credentials, and investors should ensure that all details are accurate and supported by verifiable documentation. The BOI reserves the right to reject applications that are incomplete or inconsistent.
Required Documents for the BOI License Application
Including a synopsis of current undertakings (if any), the shareholding constitution, and an organizational chart.
A robust document delineating the project scope, product or service lines, target markets, sales forecasts, and competitive strategy.
A budget detailing capital investment in land, buildings, machinery, technology, and human capital.
Descriptions of machinery and equipment, including origin, specifications, and their role in the production process.
Market exploration and assessment upholding the economic practicability of the project.
Projected number of local and foreign employees, with details on roles and qualifications.
Required for industries such as manufacturing, chemicals, and energy.
Corporate documents such as the Certificate of Incorporation, Company Affidavit, and list of shareholders.
If land use is implicated in the investment plan.
It is highly advised to have legal counsel inspect the full package before submission of the BOI License application. Omissions or mistakes at this stage could cause sizable delays or outright rejection.
Get expert legal guidance.
Third Step in obtaining the BOI License: Project Evaluation and Consideration by BOI Officials
Following submission of the BOI License application, a meticulous multi-step review is initiated by the BOI to thoroughly examine the proposed investment. Projects are classified into one of three streams for assessment based on capital value:
- Proposals requesting ≤200 million THB are first inspected by a Working Group.
- Those involving 200-2,000 million THB undergo preliminary screening by a Sub-Committee.
- The most substantial investments exceeding 2,000 million THB require approval from both the Sub-Committee and the high-level BOI Board.
The timeframe permitted for diligence ranges from a swift 40 working days for smaller projects to up to 90 days for more elaborate proposals depending on industry and scale.
The BOI analyzes a number of crucial factors to fully comprehend the undertaking’s potential impacts and synergies with Thailand’s vision, focusing on technology diffusion, employment generation within local communities, environmental sustainability, and congruence with the goals of the Thailand 4.0 national agenda – especially within targeted sectors deemed essential to future prosperity.
Fourth Step: Scheduling and Conducting the BOI Project Presentation
Once the BOI License application in Thailand passes the initial screening and is forwarded for review, the BOI will request a formal project presentation typically scheduled within ten working days of receiving the complete application. This pivotal procedural step offers BOI License applicants an opportunity to directly engage with officials, clarify technical aspects in depth, and demonstrate broader economic and strategic value beyond the written submission.
During this meeting, investors—either directly or through legal and financial representatives—are expected to provide a clear, persuasive narrative of the business plan, especially concerning alignment with Thailand’s priorities. Capital structure and expected returns stated in the BOI License application in Thailand must be thoroughly justified. The roles and qualifications of local and foreign employees should be explained, like any transfer of knowledge and technology. Environmental compliance measures must be outlined, particularly for industries subject to EIA requirements. Clarification is also needed on the investment timeline, implementation phases, sourcing of funds, construction schedules, and commercial operation dates.
The project presentation typically involves a panel including legal analysts and technical specialists attentive to detail. They may raise queries relating to shareholding structure and compliance with the Foreign Business Act. Eligibility of certain machinery or software for duty exemptions is scrutinized. Conformity with regional development criteria is examined if the project is located outside Bangkok. The sufficiency of capital injection, especially for advanced technology or infrastructure-heavy operations, deserves consideration.
Furthermore, investors should recognize the presentation may shape final incentive scope. Additional conditions are not uncommon following such sessions, especially if safeguarding policy priorities or environmental interests.
The presentation should not be viewed as mere formality but as an advocacy opportunity. Investors demonstrating strong governance, technological merit and social responsibility tend to fare better during this phase. A well-prepared presentation can also expedite subsequent Board resolution issuance.
Fifth Step in obtaining the BOI License: Receiving Notification of the BOI Resolution
Upon completion of their extensive review, the BOI will issue a formal decision on whether the BOI License application in Thailand is approved. This determination is communicated to the applicant within seven business days of the resolution date.
The resolution provides details on:
- Whether the application is accepted or declined;
- Any special conditions attached to the investment incentives;
- And maximum funding caps and benefit limitations, if relevant. Legal counsel must scrutinize this resolution to ensure all stipulations can feasibly be met and that no unexpected compliance obligations were stealthily imposed.
Sixth Step: Acknowledging and Affirming the Approval Grant
If the resolution favors acceptance, the applicant has one month following notification to submit a Promotion Acceptance Form. This must be filed through the BOI’s Promotion Certificate System using the same credentials as the application portal.
In instances involving paper-based applications, such as for business transfers, the acknowledgment needs processing at the Promotion Certificate Division headquarters. Failure to accept the resolution within the prescribed timeframe will automatically nullify the approval.
Seventh Step in obtaining the BOI License in Thailand: Submitting the Promotion Certificate Application
After consenting to the resolution, the investor has six months to submit the Promotion Certificate application. This step finalizes the legal framework governing how the investment will operate and should feature:
- The final list of shareholders and directors;
- Evidence of sourced or invested capital; and
- An updated technical and operational plan.
For business transfer cases, Form F GA CT 08 must be directly filed at the BOI’s central office. Legal experts should validate that the documentation accurately portrays the intended operational and legal organization, as any discrepancy risks invalidating the promotional privileges.
Eighth Step in obtaining the BOI License: Issuance of the Promotion Certificate
The BOI promptly issues the promotion certificate within ten business days upon receiving a complete BOI License application in Thailand. This official legal document confirms the rights and advantages granted under the Investment Promotion Act.
The certificate generally includes: conditions for tax holidays or exemptions as stated in the Revenue Code; exemption on import tariffs; land ownership under Section 27 of the Investment Promotion Act; and expedited work permit processing for foreign experts. Failure to adhere to deadlines or documentation needs may lead to denial or revocation of promotional benefits. It is strongly advised to seek legal guidance to monitor post-approval compliance such as progress reports and annual audits.
Conclusion
Acquiring a BOI License in Thailand is a intricate legal process involving multiple administrative and regulatory milestones. However, companies that succeed in obtaining this permit gain significant competitive advantages and establish themselves as contributors to Thailand’s economic growth.
Legal advisors play a core role in guiding clients through the eight-stage procedure, ensuring accuracy in submissions, advocating during evaluation, and sustaining compliance afterwards. This article has outlined each step with legal precision to assist law firms and their international clients in navigating Thailand’s investment promotion framework with confidence.
For further counsel or legal representation on your BOI application, please contact our legal team specialized in foreign investment and BOI processes.