BOI vs Non‑BOI Company Thailand: What Foreign Investors Must Know

BOI vs Non‑BOI Company Thailand: What Foreign Investors Must Know

Introduction

When starting a business in Thailand, understanding the differences in BOI vs Non‑BOI company Thailand is crucial. Choosing the correct structure impacts your ownership, tax incentives, immigration flexibility, and overall business strategy.

What Is the BOI vs Non‑BOI company Thailand Difference?

The Board of Investment (BOI) promotes strategic industries like tech, green energy, and R&D. BOI‑promoted companies benefit from foreign ownership privileges, tax breaks, and smoother work permit processes. On the contrary, Non‑BOI companies follow standard Thai regulations with more limited foreign control and fewer incentives.

Quick Comparison

Feature	BOI Company	Non‑BOI Company
Foreign Ownership	100% permitted (if eligible)	Max 49% unless FBL obtained
FBL Required	❌	✅ Often required
Work Permit Ratio	❌ No 4:1 rule	✅ 4 Thai employees per foreigner
Tax Incentives	✅ 3–8 years exemption	❌ Standard 20% corporate tax
Visa Processing	Fast‑track via One Start One Stop	Normal processing speed
Activity Scope	Restricted to BOI‑approved fields	More flexible activities
Reporting Obligations	Mandatory BOI audit/reporting	Standard DBD/Revenue filings
Location Requirements	Sometimes limited zones	No geographic restrictions

Which Businesses Qualify for BOI?

Common sectors include:

• Software & tech startups

• Green energy & smart farming

• Digital platforms & data centers

• International trading operations

• R&D and design-driven enterprises

GENTLE LAW IBL offers pre-assessment to identify BOI eligibility.

Pros and Cons of BOI vs Non‑BOI Company Thailand

✅ BOI Pros

• Full foreign ownership

• No FBL needed

• Easier visa/work permit

• Tax & customs incentives

• Regional scaling benefits

⚠️ BOI Cons

• Application takes 1–3 months

• Must adhere to BOI‑approved activities

• Annual audits/reporting required

• Staff/capital committments mandatory

• Not ideal for local B2C businesses

✅ Non‑BOI Pros

• Operational flexibility

• Faster setup

• Simpler accounting & reporting

⚠️ Non‑BOI Cons

• Foreign ownership capped at 49%

• FBL required for restricted sectors

• No government incentives

• Must hire 4 Thai employees per foreigner

What Is a Foreign Business License (FBL)?

If you exceed 49% foreign ownership in a restricted sector, apply for an FBL via the Ministry of Commerce. The process typically takes 3–6 months and may not be guaranteed.

BOI avoids FBL by offering automatic foreign ownership where eligible.

Real-World Use Cases

• Tech Startup → BOI (Software category)

• Consulting Firm → Non‑BOI (FBL if foreign-majority)

• Manufacturing/Exports → BOI

• Restaurant → Non‑BOI, FBL required

• Trading Company → BOI or Non‑BOI + FBL

Strategic Guidance on BOI vs Non‑BOI Company Thailand

1. Want full foreign control + incentives? → BOI

2. Planning a local business (e.g., restaurant)? → Non‑BOI

3. Need work permit ease + no 4:1 rule? → BOI

4. Business not supported by BOI? → Non‑BOI + FBL

5. Need speed over incentives? → Non‑BOI

How GENTLE LAW IBL Supports You

• Pre‑qualification screening for BOI

• BOI & FBL application planning

• Company structuring to optimize ownership & compliance

• Visa/work permit support

• Full lifecycle legal & compliance facilitation

Final Thoughts on BOI vs Non‑BOI Company Thailand

Choosing between BOI vs Non‑BOI company Thailand is a strategic decision tied to ownership, incentives, and operational goals. BOI is powerful for expansion-ready ventures, while Non‑BOI offers quick setup and flexibility for local businesses.Let GENTLE LAW IBL guide your decision, ensuring legal compliance and business efficiency.

TAG : NON B VISA