Many companies that are ran by foreign national in Thailand strive to get BOI status as this affords them many benefits that are otherwise unattainable but what are these benefits exactly and what does a company have to do or perform in order to get them? Read on to find out. A company can gain BOI status (granted by the government) if it is approved by the BOI which is a division of the Thai government who promote business startups and business projects in areas of industry and enterprise that are deemed desirable for the economic outlook of Thailand.
What this really means is that your company must be doing something that either Thai people are not very good at or are doing in a way that is better than how Thai companies in the same field do it and so an exchange of knowledge can take place meaning that Thais and Thailand can learn from new business practices, new technologies and such and this would clearly promote and improve the economic outlook of Thailand and would most certainly mean the company would be awarded BOI status.
But there are specific guidelines as with everything business related which means that not every company can attain BOI status and, as the usual with Thailand, there is a lot of requirements and regulations which must be met before a business can attain the coveted BOI status. The BOI guidelines mean that the BOI looks towards long term sustainable growth industries with a good safety profile. This means that a company with BOI status is likely to last in Thailand and shows good signs for future growth and companies that have attained BOI status usually cover specific industries such as high tech areas, manufacture and export businesses. Thailand also provides investment incentives for other non-industrial projects such as nursing homes for the elderly or film related projects.
The benefits offered by the BOI include both tax and non-tax benefits. These include features such as tax holidays, relief from import tax duties on machinery and materials that have been imported. Deductions for transportation, electricity and water costs for a project which are all part of a projects infrastructure are all part of the benefits of being BOI approved also and can help many projects get off the ground and get started.
In order to get started with the BOI application process you obviously need an application form and because industries are categorized and specific for each industry it means that you need the correct form for the company you registered in Thailand and the application forms request detailed information in terms of the work process, capital investment and material requirements and the time frame for the project.
Once the application is completed it needs to be submitted to a BOI official who will review it and make recommendations and then a further BOI committee will then offer a proposal of BOI benefits or a package for how the BOI can benefit that particular company and that specific industry.
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