Criteria and Capital Required for BOI Application
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Embarking on the path to invest in Thailand through the Board of Investment (BOI) program is an exciting opportunity, yet it comes with its set of requirements and financial considerations. In this exploration, we will unravel the essential conditions and capital prerequisites necessary for a successful BOI application. This concise guide aims to simplify the complexities, offering a clear understanding of what it takes to initiate your business venture under the BOI framework. Whether you are a local entrepreneur or an international investor, this overview will provide invaluable insights, guiding you towards a seamless BOI application process.
Criteria for Project Approval
In order to develop competitiveness in the agricultural, industrial and service sectors, projects submitted for BOI promotion must have the following qualifications
Qualifications
**except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, all of which must have value-added of at least 10% of revenues.*
• New machinery must be used. In case of imported used machinery, the criteria for consideration will be classified into 3 cases, as follows
capital investment requirement
Projects that have investment capital of 10 million baht or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 certification or similar international standard certification within 2 years from the full operation start-up date, otherwise the corporate income tax exemption shall be reduced by one year.
Minimum capital investment and project feasibility
The minimum capital investment requirement of each project is 1 million baht (excluding cost of land and working capital) unless specified otherwise on the list of activities eligible for investment promotion that is attached to this announcement. As for knowledge-based services, the minimum capital investment BOI requirement is based on the minimum annual salaries expense specified in the list of activities eligible for investment promotion.
• For newly established projects, the debt-to-equity ratio must not exceed 3 to 1. Expansion projects shall be considered on a case-by-case basis.
• For project with an investment value over 750 million baht (excluding cost of land and working capital) the project’s feasibility study must be submitted with details as specified by the Board.
• Projects with investments exceeding 2,000 million baht are required to submit a feasibility study report to the committee.
Criteria for Foreign Shareholding
The Board stipulates the following criteria for foreign shareholding in projects that apply for investment promotion:
• For projects in activities under List One annexed to the Foreign Business Act, B.E. 2542, Thai nationals must hold shares totaling not less than 51% of the registered capital.
• For projects in activities under List Two and List Three annexed to the Foreign Business owner Act, B.E. 2542, there are no equity restrictions for foreign investors except as specified in other laws.
• The Board may set foreign shareholding limits for certain activities eligible for investment promotion, as deemed appropriate.
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