BOI Promotion in Thailand: Benefits, Eligibility & Application Guide

BOI Promotion in Thailand: Benefits, Eligibility & Application Guide

If you're a foreign entrepreneur exploring business in Thailand, BOI promotion may be your gateway to greater operational flexibility and financial incentives. GENTLE LAW IBL, a trusted one‑stop legal advisor for foreign SMEs, outlines the true benefits, eligibility requirements, and procedural steps—anchored in legal frameworks and BOI policy.

What Is BOI Promotion in Thailand?

The Thailand Board of Investment (BOI) is a government agency under the Office of the Prime Minister. It promotes targeted industries through investment incentives under the Investment Promotion Act. BOI promotion grants privileges to Thai companies meeting BOI criteria—but does not create a separate legal entity.

Key Benefits of BOI Promotion in Thailand

✅ 1. 100% Foreign Ownership

BOI-promoted firms can be fully foreign-owned, bypassing typical 49% limits under the Foreign Business Act.

✅ 2. Corporate Tax Holidays

Promoted companies enjoy 3–8 years (up to 13 in special cases) of corporate income tax exemption, based on business type and project scope.

✅ 3. Import Duty Exemptions

Duty-free import of machinery, R&D equipment, and raw materials under eligible investment projects.

✅ 4. Streamlined Visa & Work Permits

BOI companies use the One-Stop Service Center (OSOS) for faster visa and work permit approvals, without the 4:1 Thai-to-foreigner staffing requirement.

✅ 5. Land Ownership Possibilities

BOI promotion may allow companies to own land used for the promoted activity—unlike typical foreign-owned companies.

Who Should Consider BOI?

Ideal for foreign investors who:

• Require 100% foreign ownership

• Operate in BOI-priority sectors: tech, manufacturing, R&D, digital platforms, logistics, biotech, smart farming, etc.

• Aim to hire foreign specialists freely

• Need import duty relief for equipment or R&D

• Are prepared to manage compliance reporting and adhere to BOI conditions

For small service businesses with low capital or infrastructure needs, BOI may impose unnecessary burden.

Legal Eligibility & Conditions

To qualify, your project must meet:

• Inclusion in a promoted activity list

• Minimum investment of THB 1 million (excluding land/working capital) 

• Debt-to-equity ratio ≤ 3:1 (for new projects)

• Potential requirement of ISO or quality certifications, depending on category and investment level

Special incentives—such as extended tax holidays or grant eligibility—may apply under specific categories (e.g., A1, A2, digital platform).

BOI vs Non‑BOI Company

Feature	Non‑BOI Thai Co.	BOI‑Promoted Company
Foreign Ownership	Max 49%	Up to 100%
Thai‑Staff Ratio	4 Thais per foreigner	Exempt via BOI
Corporate Tax	20% standard rate	0–8 years (up to 13)
Import Duty	Charged	Exempt for eligible items
Land Ownership	Restricted	Allowed under BOI
Visa & Work Permits	Lengthy, quota-bound	Fast via OSOS
Reporting & Compliance	Standard filings	Detailed BOI reporting
Setup Timeline	Quick incorporation	Longer due to BOI vetting

BOI Application Process

1. Feasibility Review Confirm your business fits a BOI-promoted category and meets investment thresholds. 

2. Submit BOI Application Via e-Investment portal: include detailed plans, financials, ISO certifications (if required), etc.

3. BOI Approval & Issuance BOI committee reviews (typically 40–90 days). Approved projects receive a promotion certificate.

4. Company Registration Incorporate your Thai limited company in compliance with BOI terms.

5. Operational Launch & Reporting Begin business operations and submit periodic investment and hiring reports per BOI regulations.

6. Support for Visas & Permits Use OSOS system for visa/work permit issuance, including skilled staff and families.

Common Mistakes & Risks

• Choosing wrong promotional category

• Insufficient business plan or investment amounts

• Ignoring debt-to-equity limits or certification requirements

• Failing to fully report BOI conditions—even tax holidays can be revoked on non-compliance

How GENTLE LAW IBL Supports You

As your one‑stop legal partner, we provide:

• BOI eligibility assessment

• Application and feasibility preparation

• BOI certificate drafting & submission

• Post‑approval company setup

• Visa & work permit coordination via OSOS

• Compliance audits and reporting setup

Final Takeaway

BOI promotion is a strategic tool—not an easy pass. It offers powerful advantages (100% ownership, tax holidays, reduced constraints), but only if your business is aligned with promoted sectors and capable of maintaining compliance.

Let GENTLE LAW IBL guide your assessment and execution—for clear strategy, legal security, and smoother setup.

📞 Book a free BOI evaluation today.