What is a BOI Structure?

A Thai BOI Company is a Company Limited promoted by the Thailand Board of Investment (BOI), a government agency responsible for encouraging foreign investment in strategic industries.

Unlike a standard Thai Company Limited, a BOI-promoted company benefit from significant tax incentives and, in many cases, 100% foreign ownership, depending on the approved business activity.

This structure is primarily used by foreign investors and international companies operating in targeted sectors such as technology, manufacturing, engineering, logistics, and certain service industries.

Main characteristics of a BOI Company

A BOI application can be submitted either before or after company incorporation. In most cases involving foreign investors, the BOI application is prepared and reviewed prior to incorporation, as the approval defines the structure, incentives, and ownership conditions of the company. The minimum of capital of a BOI company is THB 3 million or more, depending on the activity.

Once approved, the company benefits from a range of incentives, which can include: corporate income tax exemptions, import duty exemptions on machinery, and permission for foreign majority or full ownership.

The BOI also facilitates the hiring of foreign employees by allowing companies to obtain work permits and visas under more flexible conditions compared to standard Thai Company Limited.

However, BOI promotion is strictly activity-based. Only specific business categories defined by the BOI are eligible, and the application process requires a detailed business plan, investment structure, and compliance commitments.

BOI application process in Thailand

To obtain BOI promotion, the company must submit an application to the Thailand Board of Investment, including detailed information on:

• Business activities
• Investment capital
• Technology and operational plan
• Employment structure

The BOI application is reviewed and often requires a presentation meeting with the authorities.

If approved, the company receives a BOI promotion certificate, which defines the granted incentives and conditions.

After approval, the company must comply with ongoing reporting obligations to maintain BOI status.

Advantages of a BOI Company

Key benefits of a BOI-promoted company include:

• Possibility of 100% foreign ownership (depending on activity)
• Corporate income tax exemptions for a defined period, up to 15 years
• Certain goods may be exempt or benefit from reduced from import duty rates
• Permission to bring in skilled personnel and experts into the Kingdom to work in investment promoted activities with their families (without restriction ratio of Thai to foreigner employees)
• A company under BOI can be allowed to own land
• Strong government support for strategic industries
• Enhanced credibility with investors and partners

Limitations and obligations

Despite its advantages, BOI promotion comes with strict requirements:

• Eligibility limited to approved business activities
• Detailed application process with business plan submission
• Ongoing compliance and reporting obligations after obtaining the BOI status
• Minimum investment requirements depending on activity
• Operational restrictions defined by BOI conditions

BOI status must be carefully maintained to avoid penalties or loss of privileges.

Who should use a BOI Company?

A BOI Company can be suitable for:

• Manufacturing and industrial businesses
• Technology and software companies
• Engineering and infrastructure projects
• Export-oriented businesses
• International groups expanding into Thailand

For standard commercial or service activities, a Thai Company Limited may sometimes be a more appropriate option. As BOI eligibility depends on several factors, including the nature of the activity, investment level, and business objectives, each project should be assessed individually.

At Gorioux Siam, we support businesses in evaluating the most suitable structure for their activities and objectives. Where specialised expertise is required for a BOI application, we also work closely with trusted partners to ensure our clients receive the most appropriate guidance throughout the process.

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Frequently asked questions

Can a BOI company be 100% foreign owned?

In many cases, BOI promotion allows 100% foreign ownership, depending on the approved business activity and conditions stated in the BOI certificate.

Can I decide to open a BOI company in Thailand?

No. BOI status is not granted simply by choosing a company structure. A company must first meet specific eligibility criteria and obtain approval from the Thailand Board of Investment (BOI). Approval depends on factors such as the business activity, investment plan, and contribution to the Thai economy.

Is BOI approval guaranteed?

No. BOI approval is discretionary and depends on several factors, including the business activity, investment plan, and alignment with BOI strategic objectives. As the application process requires a detailed assessment of the project and supporting documentation, working with experienced professionals can help ensure that the application is properly structured and presented. At Gorioux Siam, we support our clients throughout this process and work closely with trusted partners to provide the most suitable expertise when needed.