To set up a company in Thailand it is necessary to comply with certain business rules. You will need a Foreign Business License. This is a lengthy process. Your company must obtain a tax ID within 60 calendar days of incorporating. You must also sign up for VAT within 30 days of achieving a certain annual revenue threshold.
Benefits of a BOI promotion card
Your company will be able to establish the legal basis for investment by having a BOI promotional certification for Thailand. Under the Investment Promotion Act of 1977 the promoted companies are permitted to own land in Thailand and make use of it for production, offices and living areas for their employees. However after the company has closed its doors, it must sell the land within a year. It must also meet certain requirements, such as transfer of technology and paying minimum wages. However, the requirements are subject to be modified at any point, based on the needs of the Thai government.
The process of obtaining an BOI promotion certificate is essential for foreign investors looking to invest in Thailand. These investment incentives have many advantages which include tax exemptions for up eight years. Additionally, there are reduced corporate taxes for registered businesses. Foreign companies can also avoid paying huge import duty for machinery and equipment. BOI thailand benefits will help your business save on the cost of production and export.
Corporate income tax exemptions
Thailand’s Board of Investment (BOI) encourages certain types of companies by offering Corporate Income Tax Exemptions. These tax breaks are available only to income earned by a BOI-sponsored business. Nevertheless, many BOI-registered companies also earn income from sources that are not BOI-promoted.
In order to qualify for an exemption an organization must meet certain requirements. It must have a sustainable and well-established business model. It should also have at least 80 percent revenue.
Application process
You must complete an application form to open a BOI Thailand company. You can get these forms from the BOI headquarters or an online investment platform. These forms typically include up to ten pages of questions. The questions address your company’s status, shareholders and product development. They also address specific clients. To avoid mistakes, please fill out every section of the form accurately and completely.
Next, submit all required documents on time. If you fail to submit your documents on time, you can write an explanation letter to the BOI Thailand and request an extension. But, you can’t request more than three extensions in three consecutive weeks.