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Thailand BOI Investment

The Board of Investment (BOI) is the Thai government agency responsible for attracting foreign investment to Thailand. They use a wide range of incentives to encourage investors to engage in specific kinds of projects.

Generally, such incentives include certain protections and guarantees from the government (e.g. against nationalization, competition from new state enterprises etc.), reductions on various types of Thai taxes and the relaxation of some of the restrictions on foreign companies with regard to the issuance of work permits and visas . Most importantly, at least from the point of view of this discussion, the BOI is able to grant permission for foreigners to own land in order to carry out such promoted projects.

Who qualifies for BOI incentives?

It’s important to note that individuals cannot qualify for BOI incentives: only limited companies, cooperatives or foundations are eligible to apply. The BOI has well-developed areas of business it is prepared to promote, and the most up to date list should be obtained directly from the BOI at http://www.boi.go.th/english/ Such lists have been developed by the BOI in accordance with the Investment Promotion Act (1977) and, in keeping with the act, particularly favor projects that will:

•    Locate in provincial areas
•    Develop industries that are capable of stimulating further industrial development
•    Develop public utilities and infrastructure
•    Conserve energy or replace imported energy
•    Contribute to technological development
•    Strengthen the balance of payments

The number of employees is also an important consideration, as is the project’s ability to generate foreign exchange. Note also that different activities will qualify to receive varying levels of incentives and, as such, some activities do not necessarily include the right to own land .If the right to own land is granted, it normally applies throughout the life of the project.

How does the application process to the BOI work?

Applications for BOI promotion can normally be completed in around 2-4 months from the submission of all required information (which can be done before the company’s final registration with the Ministry of Commerce). The process usually involves a series of meetings between the applicant and BOI officials to discuss the specifics of the proposed project. In simple terms, the BOI will generally evaluate applications from the point of view of how the project will benefit Thailand. In this respect, it is also a good idea for applicants to meet with senior BOI executives to explain the potential benefits of the project to Thailand, despite there being no formal requirement to do this.