How Thailand's BOI Boosts the Robotics and Automation Industry

How Thailand’s BOI Drives Growth in the Robotics and Automation Industry

The Board of Investment (BOI) of Thailand recognizes the robotics and automation industry as a pivotal component of the country’s economic development strategy. Understanding the potential of technology to drive transformative and long-term change, the BOI aims to support this sector through additional assistance and incentives. The relationship between the BOI and the industry is based on a mutual goal of driving technological innovation and industrial advancement, positioning Thailand as a key player in the global robotics marketplace.

Starting a Robotics and Automation Company in Thailand with BOI Support

This section outlines the step-by-step process of establishing a compnay in the robotics and automation industry in Thailand with support from the Board of Investment (BOI).

Market Research and Business Planning: Conduct a market research to understand the needs and demands of robotics and automation in the key industries in Thailand such as manufacturing, agriculture, or healthcare. Then develop a business plan, which should consist of your business model, products, target market, and financial forecast.

Understanding BOI Promotion Eligibility : Check if your business activity is eligible for promotion by the Board of Investment (BOI). Understand the benefits offered by the BOI, such as tax incentives, import duty exemptions, and other non-tax incentives including ownership of land and facilitation of work permits for foreign employees.

Prepare a Detailed BOI Application : Create an application to the BOI highlighting your use of technology, size of investment, and plans for employment. Submit your application through the BOI’s online system. It involves ensuring that all necessary documents are prepared and included accurately

Presentation to the BOI : Once the application is submitted, you may have to present your project to a BOI panel. It entails ensuring that the presentation explains the BOI’s criteria and conditions for the economy of Thailand

Obtain BOI Certification : The BOI will review your application, which can take several weeks. If approved, you will receive a certificate that outlines the terms and conditions of your promotion.

Incorporation of the Company : Decide on a company structure, with a private limited company being a common choice. Register your company with the Department of Business Development (DBD) under the Ministry of Commerce. This includes reservation of company name, preparation of company documents such as the memorandum and articles of association, filing an application, and paying the registration fee.

Compliance and Reporting : Ensure that you meet all conditions specified in the BOI certificate. You may be required to submit regular reports to the BOI to show you are complying with the terms of your promotion.

Additional Registrations and Licenses : Depending on your business activities, you may need additional permits from agencies like the Industrial Works Department, Ministry of Industry. Also, register for VAT and obtain a tax ID from the Revenue Department.

Hiring Staff : Hire qualified staff, ensuring compliance with Thai employment laws and BOI requirements for foreign workers. This includes applying for work permits through the BOI’s One Stop Service Center.

Operational Setup : Establish your manufacturing process or your research facility. Furthermore, you need to make you get the right equipment and form long-term relationships with customers and suppliers.

Each of these steps should be carefully managed, often necessitating consultations with legal and financial advisors who specialise in Thai business law and BOI processes.

How the Board of Investment (BOI) Incentivizes the Industry

The Thai government, through the Board of Investment (BOI), provides various incentives to stimulate the growth of the robotics and automation industry. These incentives include tax breaks, import duty exemptions on machinery, and additional benefits for investments in designated economic zones. Such measures are designed to attract foreign investment and support domestic companies in adopting advanced technologies. Please find the detailed description of the incentives and benefits from the BOI in the following section.

Incentives and Benefits Offered by BOI

The Thai government, through the Board of Investment (BOI), actively supports the growth of the robotics and automation industry with a variety of incentives designed to attract foreign investment and encourage domestic companies to adopt new technologies. These incentives include:

Corporate Income Tax Exemptions: Considerable reductions or total exemptions for specific periods, based on the project’s economic impact.
Double Deductions from Utility Costs: Designed to help companies lower operational costs and boost profitability.
50% Tax Deduction on Project Investment: Provides substantial tax relief for eligible companies, applies over 5 years.
Exemption on Raw Materials: Intended for manufacturing products for export, designed to boost businesses focused on exporting
Machinery Import Duty Exemptions: Relevant for specific machinery and robotics technologies not found locally, enabling the uptake of advanced technology.
Permission for Foreign Ownership: Allowing 100% foreign ownership in certain business categories related to robotics and automation.
Land Ownership Rights: Enables foreign investors to own land for business use, particularly in industrial estates.
Facilitation of Visas and Work Permits: Simplified procedures for foreign experts and technicians involved in BOI-promoted projects, ensuring a smooth process for skilled labor entry.

Key Considerations for Starting a Robotics and Automation Company in Thailand with BOI Support

Launching a company in the robotics and automation industry in Thailand with support from the Board of Investment (BOI) offers numerous benefits, but there are key considerations to ensure success and compliance. Here are important things to keep in mind:

Alignment with BOI Criteria: Ensure your business activities align with the BOI’s criteria, which prioritize projects involving technology transfer, innovation, and significant contributions to the Thai economy. Robotics projects that enhance productivity, reduce costs, or introduce advanced technology are particularly favored.
Comprehensive Business Planning: Develop a comprehensive business plan that includes market analysis, financial projections, risk assessment, and strategic goals. Plan your resources effectively to cover both the initial setup costs and ongoing operational expenses.
Regulatory Compliance: Familiarize yourself with Thai business laws, labor laws, and industrial standards, as these will influence your operations. Stay informed about changes in the regulatory environment to ensure ongoing compliance.
Technical and Operational Setup: Establish the right infrastructure for your robotics company, which may require substantial investment in technology and facilities. Build a reliable supply chain to support the technological and logistical needs of your operations.

The robotics and automation industry is set for continued growth, with advancements in AI and machine learning driving its evolution. As robots become more sophisticated and capable of performing complex tasks, industries across the globe are set to witness transformative changes, which will present new challenges and opportunities. With supportive policies and incentives, such as those provided by Thailand’s BOI, the industry’s potential is limitless, promising a future where automation is synonymous with advancement and efficiency.