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Archives for Thailand BOI

Thailand BOI company registration for Industrial Chemicals

Does the nature of your business involve industrial chemicals? Are you planning to take your operation to Asia or specifically to Thailand? Do you wonder if this is possible? The answer is YES and we can assist you to make it happen. Your industrial chemicals business can benefit from Thailand BOI company registration as long as your products are not paint, cleaning products, automobile lubricants, compound chemical fertilizers, insecticides, herbicides or cement based adhesives.

There are the advantages of enlisting your business under BOI (Board of Investment) in Thailand.

  • Corporate tax amnesty for 3 years
  • No import tax for machinery
  • No import tax for raw materials for one (1) year (can be extended according to BOI rules & eligibility)
  • Other non-tax incentives

Read Thailand BOI benefits here.

Don’t worry even if your industrial chemical products are similar to those mentioned above. You can still operate your factory here without Thailand BOI.

Sounds interesting and beneficial for your industrial chemicals business? Drop us an email info@MSNAgroup.com. Get an advice from the experts in Thailand BOI company registration. MSNA Group of companies are experts in providing consulting to foreigners wishing to set up their business operation is Thailand at very reasonable prices for world class services.

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Software business with super cluster policy from Thailand BOI

Thailand Board of Investment launched the Cluster-based Special Economics Development Zone Policy to enhance investment potentials and competitiveness. There are Super Cluster and other targeted clusters. Software is one of the activities granted highest incentives under Super Cluster policy.

Without the cluster policy, embedded software development business normally can get 8 years of corporate income tax exemption while enterprise software and digital content can get 5 year income tax exemption.

Under Super Cluster policy, all types of software development are granted 8 years corporate income tax exemption without cap plus 5 years 50% income tax reduction and import duty exemption on machinery if operating in either Chiangmai or Phuket.

Additionally, the international specialist may enjoy the personal income tax exemption, details of which will be announced soon by the Ministry of Finance.

Apart from the above tax related benefits, other incentives include consideration of granting Permanent Residence to the leading specialist and permission for foreigners to own land to implement the activities that receive Thailand BOI promotion. – However, we checked with the Immigration Office and they do not really have any special treatment regarding permanent residence yet.

General Conditions for BOI incentives

  • The business have to spend THB 1.5 M in IT employees’ salaries per year.
  • Projects must include software development process specified by the Software Industry Promotion Agency (SIPA).
  • Projects with an investment of 10 million baht or more (excluding cost of land and working capital) must obtain a quality standard certificate from SIPA or receive a Capability Maturity Model Integration (CMMI) quality standard certificate or any equivalent standard within two years from the full operation start-up date. If the project fails to meet such conditions, one-year corporate income tax exemption shall be withdrawn.
  • Revenue derived from sales or the provision of services that are directly related to a promoted software business shall be regarded as revenue of such promoted businesses.

Additional condition for special incentive under Super Cluster

  • The business must have a cooperation with academic institutions / research institutions / centers of excellence in the designated areas e.g. Talent Mobility / Work-integrated Learning / Co-operative Education / Dual systems or Cooperation in development of human resource or technology as approved by Thailand Board of Investment
  • The BOI applications must be submitted by the end of 2016.
  • The production or operation must start by the end of 2017. (Extension is possible if deemed appropriate.)

Read Thailand BOI promotion process for more information.

Contact us today for your BOI needs.

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BOI Measures to Promote Improvement of Production Efficiency

With regard to the recently issued Announcement of the Board of Investment No. 1/2557, the Thailand BOI is encouraging both BOI-promoted and non-BOI promoted manufacturers to invest additionally for the improvement of production efficiency. This improvement is to be achieved through 3 measures as follows:-

The announcement includes 3 measures as follows:

  1. A measure to promote energy conservation, alternative energy utilization, or reduction of negative environmental impact. The investor must submit an investment plan detailing proposed upgrading of machinery to save energy, a plan to introduce alternative energy into the project or a plan to reduce damaging environmental impact according to the stipulated criteria.
  2. A measure to promote investment to upgrade manufacturing technology and machinery to increase production efficiency. Investors must submit an investment plan detailing replacement or modification of machinery used in automated production lines.
  3. A measure to promote investment in research and development to upgrade manufacturing technology and advanced engineering designs for improving efficiency. Investors must submit an investment plan for research and development or implementation of advanced engineer designs that conform to the stipulated criteria. Investors with large projects must invest no less than 1% of their total revenue for the first three years from the date of application submission in research and development or advanced engineering designs. For SMEs, projects must invest no less than 0.5% of their total revenue for the first three years from the date the application is submitted in research and development or advanced engineering designs.

Interested investors for incentives under these measures must operate businesses of a type that is specified on the BOI list of businesses that are eligible for promotion. The minimum capital investment requirement for each project must not be less than 1 million Baht, excluding land cost and working capital. For Small and Medium Enterprise (SME) projects, the BOI requires an investment value of Baht 500,000, excluding the cost of land and working capital.

The incentives given to approved projects in all zones include exemption from import duty on machinery and a three-year corporate income tax exemption based on the revenue of an existing project, and will not exceed 50% of the total investment value under this measure, excluding land cost and working capital. Project applications must be submitted by December 31, 2017 and the projects must be completed within three years from the date the promotion certificate is issued.

The investment promotion measures to improve production efficiency are in accordance with the National Economic and Social Development Plan No. 11 which outlines a strategy for restructuring the economy to ensure quality and sustainable growth, with the focus on improving manufacturing production efficiency and promoting the use of advanced science, technology and innovation while also furthering the use of clean energy and alternative energy.

Know more about Thailand BOI promotion and its benefits for your business. Consult with ThaiLawyers for getting BOI certificate, Thai company registration, visa and work permit application.

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Thailand BOI: New Investment Strategy

Thailand BOI has recently approved the seven-year draft investment promotion strategy which will commence from 2015 to 2021. The new investment strategy will shift from broad-based to focused and prioritized investment promotion that will lead to the restructuring of the Thai economy. It will also move the country forward to become a higher-income economy with sustainable growth in the long run.

The new strategy will still offer promotional privileges to seven groups of industries: agro-industry and agricultural products; mining, ceramics and basic metals; light industry, metal products, machinery and transport equipment, electronics industry and electrical appliances; chemicals, paper and plastic; and services and public utilities although greater emphasis will be placed on high technology, high added value, research and development or design and environmentally friendly activities.

There are two types of incentives to be offered: (1) activity-based incentives and; (2) merit-based incentives. For instance, basic incentives will be offered in accordance with the types of activities. Additional incentives will also be provided for projects that will benefit the country, such as research and development, high-skill development, and the distribution of wealth to regional areas.

Meanwhile, the previous zoning policy, whereby Thailand was divided into three zones for investment purposes, will be revoked. It will be replaced by the promotion of new regional clusters in order to create new investment concentration in each region and stronger value chains.

Moreover, the new strategy will attach importance to both inbound and outbound investment promotion. This will help ease constraints in terms of domestic resources. It will also enable the country to seek new business opportunities for the Thai private sector, especially when the ASEAN Economic Community (AEC) goes into full effect and Thailand plays a greater role in the international arena.

In this regard, the first target countries include Indonesia, Myanmar, Vietnam, Cambodia and Laos. The second ones are China, India and other ASEAN nations, while the third group includes Central Asia, South Asia and Africa.

Contact MSNA for company setup, BOI promotion, Foreign Business License, factory license, visa and work permit application in Thailand.

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Thailand BOI – Application for Bringing in Foreign Experts and Technicians

Today, we talk about the application for bringing in foreign experts and technicians to work for promoted business under the Investment Promotion Act B.E. 2520.

The Foreign Expert Services Division, Investment Services Center, Office of the Board of Investment, offers services at the One-Stop Service Center for Visas and Work Permits to facilitate the bringing in foreign technicians or experts, as well as their families, into the Kingdom to work for businesses promoted under the Investment Promotion Act B.E. 2520

The procedure has two steps:

STEP 1: The company submits an application at the Foreign Expert Services Division requesting approval of the positions of the foreigners.

This step involves submission of a document describing the company’s objectives and the necessity to bring in foreigners to work in specified positions, the personnel plan of the company showing the number of positions of foreign experts or technicians required and the periods during which foreign technicians or experts are required to work for the company.

Required documents:

  1. Form for Requesting Permission to Bring in Technicians (F FR NI 01)
  2. The company’s organization chart

The chart must show the organization’s lines of responsibility, specifying the positions for which approval is requested. The positions which have been approved must also be shown on the chart.

  1. Form F FR NI 02 (Kor Kor Tor 41)

The following details are required:

– Position titles in English

– Job descriptions, covering all actual jobs required

– Job requirements

– Duration (The periods during which the foreigners are required)

  1. A copy of Investment Promotion Certificate

A copy of the main Investment Promotion Certificate is required. In case of multiple certificates, only the ones relevant to the request should be attached.

  1. A copy of the License to Commence Operations

In the event the company is not in a position to furnish the License to Commence Operations, a written explanation, stating the reason (s) and the current stage of the company’s business plan shall be required.

  1. A copy of the Company Registration Certificate

The document must not be older than six months, as of the submission date.

  1. A copy of a list of shareholders

An up-to-date list of shareholders and their shareholdings is required. For public companies, the document provided must contain pages showing the major shareholders and the ratio of Thai to foreign shareholders.

  1. A copy of Balance Sheet and Profit & Loss Statement
  2. All documents (except the ones issued by the Office of the BOI) must be signed by the authorized directors as specified in the Company Registration Certificate with the company seal affixed, or by a person duly authorized by the directors (with a Power of Attorney clearly specifying the authorized powers and duties and a thirty-baht duty stamped affixed).

Once approved, the company will receive a Letter of Approval for use as a reference in Step 2.

In case it was not approved, a written notification is issued to the company.

STEP 2: The company files an application at the Foreign Expert Services Division requesting approval to bring in foreigner to work. (Filing the approved positions)

The foreigners in question will need a non-immigrant category “B” visa to enter the Kingdom. They need to obtain the visa at a Thai embassy or consulate in a foreign country and to declare the objective of entering the country to work. Upon arrival into Thailand, their non-immigrant category “B” visa will be stamped by immigration. After that, they are required to request an extension of their stay in order to work.

Documents required in Step 2:

  1. A company letter containing details and reasons

The letter shall mention the company’s intention to fill the specified positions with details of the individuals (names specified and justifications provided as to why such persons are suitable for the jobs) being proposed to fill the positions.

  1. A Bio-data form

Once approved, a written notification is issued to the company, the Immigration Bureau and the Department of Employment

However, in the event that it is not approved, a written notification will be issued to the company.

Interested in obtaining BOI promotion in Thailand, contact ThaiLawyers for BOI application, Thai company registration, visa and work permit application for bringing in foreign experts and technicians to work for your company.

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Thailand BOI conditions for the compliance by the promoted person or company

In the case where Thailand Board of Investment grants promotion to any applicant, the BOI may set conditions in the promotion certificate for the compliance by the promoted person in one or more areas as follows:

(1) Amount and source of capital;

(2) Nationality and number of shareholders;

(3) Size of activity including the types of products, commodities or services and the production or assembly processes and capacity thereof;

(4) Amount of local raw materials to be used;

(5) Nationality and number of workers, technicians and experts;

(6) Training and employment of manpower;

(7) Prevention and control of damaging elements to the quality of the environment;

(8) Period of time to commence the implementation of the promoted project;

(9) Period of time to place orders for the purchase of machinery;

(10)Period of time to import machinery into the Kingdom;

(11)Period of time to re-export the imported machinery after the termination of their use;

(12)Extension of time limits under (8), (9) or (11);

(13)Date of commencement of operation;

(14)Report on implementation of the project and operation;

(15)Report on the performance of the training provided by the foreign technicians and experts to the Thai personnel;

(16)Requirements that the products or commodities produced, assembled or exported conform to the standards prescribed either by the Board or other government agencies;

(17)Distribution of products or commodities produced or assembled or services rendered;

(18)Export of products or commodities produced or assembled;

(19)Requirements that the cash, bank guarantee, the Thai government securities or other securities deemed appropriate by the Board, be deposited with the Office for the purpose of guaranteeing the compliance with the conditions stipulated by the Board;

(20)Other matters relating to the provision of facilities to the competent official, granting, exercising or controlling of the rights and benefits under this Act.

Application for Thailand BOI promotion would be easier if you have a partner to guide you in the application process. Contact ThaiLawyers for BOI promotion, company registration, visa & work permit and further Thailand BOI questions.

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Thailand BOI Promotion – Hotel Business

We want to setup a Thai company and engage in hotel business. Can we be eligible for BOI promotion? What are the benefits if we got promoted?

Answer:

Yes, you can be eligible for BOI promotion provided that you meet the criteria and conditions set by the Board of Investment. For each hotel that you will build, there must have at least 100 rooms in it. Also, the minimum investment, not including cost of land and working capital, should not be less than Baht 500 million.

Once you got promoted, you can receive BOI privileges depending on your hotel location:

  1. If it is located in Zone 1, Zone 2, Hat Yai district of Songkhla or Muang district of Chiang Mai, you will be granted only non-tax incentives.
  2. If it is located in Zone 3, you will receive only an exemption of import duty on machinery and other non-tax privileges.
  3. If it is located in the provinces of Kalasin, Nakhon Phanom, Narathiwat, Nan, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakon Nakhon, Satun, Surin, Nongbualamphu, Chaiyaphum, Nongkhai, Ubon Ratchatani, Udon Thani and Amnat Charoen, you will receive the rights and benefits according to the BOI Announcement No. 1/2543 dated August 1, 2000.

Interested in getting BOI promotion for your company in Thailand, contact ThaiLawyers for more information.

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BOI Promotion on Manufacturing Textile Products

Under Section 3 of the Permitted Activities of the Board of Investment, activities for Light Industry are as follows:

3.1 Manufacture of textile products or parts

3.1.1 Manufacture of natural or synthetic fibers

3.1.2 Yarn spinning

3.1.3 Manufacture of fabrics

3.1.4 Bleaching, dyeing and finishing

3.1.5 Printing and finishing

3.1.6 Manufacture of garments

3.1.7 Manufacture of parts or accessories for garments

3.1.8 Manufacture of household textiles

3.1.9 Manufacture of carpets

3.1.10 Manufacture of trawling nets

Conditions

  1. Bleaching, dyeing and finishing project must be

1.1 Located in an industrial estate specified by the Industrial Estate Authority of Thailand or promoted industrial zones which have waste elimination systems and environmental conservation according to legal standards

1.2 Only the promoted companies that plan to expand the project in the existing location must obtain ISO 14000 certification within 2 years from the start-up date.

Rights and benefits

  1. Shall be according to the Board of Investment Announcement No. 1/2543 dated August 1, 2000
  2. Projects located in industrial estates for integrated production of the textile (except Bleaching, dyeing and finishing) shall be granted:

2.1 Exemption of import duty on machinery, regardless of zone

2.2 Exemption of corporate income tax for:

(1) Five years if located in Zone 1

(2) Seven years if located in Zone 2

(3) Eight years if located in Zone 3

2.3 Other rights and benefits shall be granted according to the BOI Announcement No. 1/2543 dated August 1, 2000

  1. Only the manufacture of functional fiber and functional yarn shall be classified as a priority activity.
  2. Bleaching, dyeing and finishing projects that are located in an industrial estate specified by the Industrial Estate Authority of Thailand and industrial estates for integrated production of the textile shall be granted:

4.1 Exemption of import duty on machinery

4.2 Eight-year corporate income tax exemption

4.3 Other rights and benefits shall be granted according to the BOI Announcement No. 1/2543 dated August 1, 2000.

Contact ThaiLawyers for BOI application, Thai company registration and visa and work permit application.

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Setting up a Thai Company to Open a Fertility Clinic

Can foreigners set up a Thai company in order to open a fertility clinic in Thailand?

Answer:

Yes, foreigners can set up a Thai company and operate a fertility clinic in the Kingdom. The steps involved are:

  1. Set up the Thai company
  2. Have fully equipped clinic ready to do the services/business
  3. Apply for the licenses, where the officials will come to check your facility

We think your biggest challenge is to find at least one doctor, i.e. Obstetrician Gynecologist who will hold the license for your clinic. And if you hire more doctors to work at this clinic, all of them need to apply for a license to work at your clinic and they have to be gynecologists like the first one. If any of the doctors are not Thai, they will still need to have the medical license from Thailand.

Contact ThaiLawyers for company setting up, visa and work permit and related business licenses application in Thailand.

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BOI Promotion of Data Center in Thailand

Data Center is classified as one of the priority activities by the Thai Board of Investment. In order to promote investment in Data Center, develop information technology infrastructure, and enhance efficiency and to reduce costs of doing business which are crucial to the development of Thailand as center for regional operating headquarters and information technology, the BOI has set the following conditions and privileges of activities eligible for investment promotion as follows:

  1. There must be hi-speed fiber optic telecommunications connection throughout data center.
  2. The main hi-speed telecommunications system must link data center with domestic and international telecommunications centers.
  3. There must be continuous power distribution backup system and backup power generator to support normal operation of information technology system.
  4. There must be high-efficiency air conditioning and filter system to support efficient device operation.
  5. Area of data center must not be less than 5,000 square meters.
  6. Complementary services for customers located in the project e.g. server co-location, managed service, customer’s server backup service, disaster recovery services (DRC), data center professional consultation etc. must be provided.

Contact MSNA for your Thailand BOI company registration, visa and work permit, accounting, tax and other business needs.

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