BOI Company vs Thai Limited Company: Which Suits Foreign Investors?

Foreign entrepreneurs setting up in Thailand must choose between registering a normal Thai limited company or pursuing BOI (Board of Investment) promotion. Each option affects not only ownership structure but also tax benefits, work permits, land rights, and regulatory exposure. GENTLE LAW IBL presents a clear comparison to help you decide strategically.

Quick Comparison of Key Features

Feature	BOI-Promoted Company	Normal Thai Limited Company
Foreign Ownership	Up to 100%	Max ~49%
Work Permit Ratio	Exempt via OSOS center	4 Thai staff per foreigner required
Corporate Tax Incentives	0–8 years standard, up to 13 benefits	Standard 20% corporate rate
Import Duty Exemption	Yes, for machinery/R&D	No
Land Ownership Rights	Allowed for promoted activity	Generally restricted
Setup Time	1–3 months (BOI processing)	3–7 days typical
Compliance Requirement	High: reporting, certification	Standard corporate and tax filings

⚖️ Key Benefits of a BOI Company

1. Full Foreign Ownership Without local partners

2. Eased Work Permit Requirements — No Thai staff quota, faster permits via OSOS

3. Tax Holidays — Standard 3–8 years, up to 13 in some categories

4. Duty-Free Imports for equipment and R&D materials

5. Land Ownership Permissions for BOI-approved projects

6. Enhanced Credibility — BOI status signals commitment and government support

When a Normal Thai Limited Company Is Preferable

• You’re starting a small/retail service business that doesn’t fit BOI categories.

• You need quick setup with minimal documentation.

• You can work within a 49% foreign ownership limit.

• You’re okay with standard corporate tax and regulatory compliance.

🛡️ Legal & Strategic Considerations

• BOI regulations are strict—eligible sectors only, plus minimum capital, debt-to-equity caps (max 3:1) and potential ISO requirements

• Non-BOI companies must comply with Foreign Business Act—use proper shareholders or apply for licenses to operate in restricted sectors. No nominee setups permitted (illegal).

What Our Clients Say (Example Case)

“After initially planning a simple Thai limited company, we restructured under BOI with guidance from GENTLE LAW IBL. Now we own 100%, employ foreign specialists, and benefit from 5‑year tax holidays.” — Foreign logistics client.

How GENTLE LAW IBL Can Help

• Evaluate BOI eligibility and suitability

• Draft and submit BOI application + business plan

• Facilitate company setup and post‑approval structuring

• Coordinate visa/work permit processes via OSOS

• Ensure ongoing compliance, VAT, tax, and reporting

We offer a one-stop legal solution tailored to your strategic business goals and risk profile.

🧭 Final Takeaway

Choose a BOI‑promoted company if you want full foreign ownership, investment incentives, and flexibility to scale with foreign staff and equipment.

Opt for a normal Thai limited company if your business is small, straightforward, and needs fast market entry.

Both paths require legally sound structure—no shortcuts. GENTLE LAW IBL is ready to guide your decision based on your goals, investment size, and sector.

📞 Book your free strategy session today.

Line OA : @gentlelawibl

Whatsapp : +66 96 579 5345