When you apply for BOI approval in Thailand, it’s vital to do your research thoroughly. Your business plan and the benefits of operating in Thailand will need to be presented. It is crucial that you’re prepared to answer any questions about your experience in the field and your background. Although the interview might seem difficult, don’t fret. Your task is to convince the BOI agents that your initiative is a success, and that they should accept the project.
Benefits from taxation that are not tax-deductible BOI approval
Foreign investors can avail a number of benefits by registering with the Board of Investment of Thailand (BOI). Businesses can enjoy reduced corporate taxes tax exemptions of up to eight years and reduced import duty on raw materials and important commodities. Foreign companies can also enjoy reduced production and export costs. The economic climate is also favorable, making the investment of foreign companies a desirable option.
BOI approval also comes with tax-free advantages, including the ease of hiring foreigners, easy access to permits and land ownership. Companies that have BOI approval in Thailand are guaranteed a certain number of employees and a certain value of investment. They are also protected from nationalization and are able to hire foreign experts without quota.
Time-consuming process
Thailand is a great location to start a new business. Its low operational costs make it a great location for business owners. It is simple to hire staff and to reduce tax from Thailand. A BOI license is required for the establishment of a Thai business.
The first step of the process is to submit an application. The application should contain the basic information about your business such as its primary market and financial strategy. It must include a business plan along with your marketing strategy, as well as an environmental policy. The process is extremely time-intensive this is the reason it is advised to seek legal advice and prepare the necessary documents in advance. After BOI companies in Thailand is submitted you must schedule a meeting with the BOI within ten days to present your business plan. You must be prepared to address any concerns that the BOI might have regarding your business plan during the interview.
Requirements for share capital
If you’re looking to establish a company in Thailand the first step is to apply for BOI approval. There are several requirements you have to meet, including the minimum capital investment as well as working capital requirements. To be eligible for a work permit, you’ll require a capital investment of THB 2,000,000 in case your business is set up to hire foreign workers. For registration of your company, you will also need government fees.
While the minimum investment could be a concern for some business owners , it is not an issue for many Thai investors who are willing to invest in companies that have been approved by BOI. There are many variables that affect the share capital requirements for different projects. If you have any doubts ask a lawyer. The current share capital requirement in Thailand is three million baht. However, it could vary depending on the type of business.
Corporate tax exemptions
Corporate tax exemptions are available for foreign companies that invest in Thailand. Benefits can be extended for up to eight years based on the nature of the business. Non-tax incentives such as tax holidays of between three and eight years, exemptions on raw materials, machinery or tax holidays are some examples of incentives. Incentives are available for front-end and back-end capital investments, which include R&D in-house, joint ventures.
Tax exemptions for corporations in Thailand are available for many industries. Businesses typically invest in industries that qualify for the tax breaks. Those companies that invest in manufacturing and exporting products will be eligible for exemptions that will help them cut costs while still retaining the profitability.