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Archives for Thailand Company Registration

Thailand Investment Promotion for Software Park Business

Software park

Thailand Investment Promotion for Software Park Business

As the digital way of life has now been touching all corners of the Thai society, the software industry is a very crucial driver for the country’s technological, social and economic development. With a very competitive market, Thailand is a very attractive software investment location for its skilled and affordable workforce, with programmers with a strong suit. If you are planning to invest in a Software Park business in Thailand, then the conditions and incentives below might help you.

 

Conditions:

  • Project must have high-speed fibre-optic main communication system throughout the area.
  • The main telecommunication system must have a high-speed cable from the software park to domestic and international telecommunication centre.
  • Continuous back-up of electricity supply must be installed.
  • The total area must not be less than 5,000 square meters.

 

Incentives to set up a software park in Thailand promoted by the board of investment are:

  • An 8 year exemption from corporate income tax
  • Exemption of import duties of machinery such as computers and software
  • Exemption of import duties on raw materials used in production for export
  • 100% foreign ownership
  • Permit to own the land
  • Permit to bring skilled workers and experts to work in Thailand.

 

For further queries, please feel free to read the Thailand BOI information and contact MSNA to help you with your BOI company registration.

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BOI Promotion for Nanotechnology Development

Nanotechnology Development

 

BOI Promotion for Nanotechnology Development

Thailand Board of Investment sees the crucial benefits to Thailand in promoting the nanotechnology industry. If your business can meet these conditions, it is definitely worthwhile to pursue the BOI application.

Conditions:

  1. Target technology development procedures shall be used as a base for the manufacturing process or service provision in the target industry as approved by the BOI.
  2. There must be a technology transfer with an educational institution or research institute as approved by the BOI e.g. Technology Research Consortium.
  3. Project located in a science and technology park promoted by the BOI or one that is approved by the Board will receive an additional 50 percent reduction in a corporate income tax for 5 years after the end of its corporate income tax exemption period.
  4. Project may apply for merit based incentive and be granted the corporate income tax exemption for not exceeding 13 years.
  5. Project shall be granted import duty exemption on goods.

 

Here are the benefits of getting BOI promotion for your business in the nanotechnology industry

  1. Exemption from corporate income tax for 10 years without cap on the income tax you can save.
  2. Exemption of import duties on new machinery that you may need to import for your new business.
  3. Exemption of import duties on raw materials used in production for export.
  4. 100% foreigner ownership of your business
  5. Your BOI promoted company can own land that you will use only for your promoted business activity.
  6. Your company will be able to get a lot of work permits for your skilled workers and experts.

MSNA Group can help you set up your BOI company in Thailand with ease. Talk to us today.

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BOI Promotion for Manufacture of Medicine

Manufacture of Medicine

 

BOI Promotion for Manufacture of Medicine

Thailand Board of Investment offers incentives and benefits for businesses within the medicine manufacturing industry. In order to qualify for the benefits, medicine manufacturing operations must meet certain conditions as set forth below.

 

The BOI conditions and incentives are summarized below:

  • Conditions:
  1. For conventional medicine projects, such promoted projects must achieve GMP standard prescribed by PIC/S within two years from the full operation start-up date.
  2. For traditional medicine projects, such promoted projects must achieve GMP standard within two years from the full operation start-up date.
  3. For the improvement of existing projects, existing machinery can be used in the promoted project but its value shall not be included in the investment amount eligible for corporate income tax exemption.

 

  • Incentives are A3 category:
  1. Exemption from corporate income tax for 5 years.
  2. Exemption of import duties on new machinery.
  3. Exemption of import duties on raw materials used in production for export.
  4. 100% foreigner ownership.
  5. Permit to own land.
  6. Permit to bring in skilled workers and experts to work in the Kingdom.

Let MSNA Group help you in setting up your BOI company in Thailand.

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BOI Promotion for Manufacture of Metal Products or Metal Parts

Manufacture of Metal Products or Metal Parts

 

BOI Promotion for Manufacture of Metal Products or Metal Parts

The Board of Investment provides incentives and benefits for doing business in Thailand within the metal manufacturing industry. In order to qualify for the benefits, the project must have metal forming process continuing from iron/steel casting process (using induction furnace) or iron/steel forging process, i.e. machining and stamping within the same project. Incentives for doing business in the manufacturing of metal products or parts includes corporate income tax and import duty exemptions.

 

The BOI incentives granted to the business of Manufacture of Metal Products or Metal Parts are summarized below:

  1. Exemption from corporate income tax for 5 years.
  2. Exemption of import duties on new machinery.
  3. Exemption of import duties on raw materials used in production for export.
  4. The company can be owned 100% by foreigners.
  5. You can own land enough for your business use.
  6. Getting many work permits for your skilled expat employees.

Let’s discuss your Thailand’s business plan today. Contact MSNA Group for expert advice in setting up your BOI company.

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BOI Promotion for Plant or Animal Breeding

BOI Promotion for Plant or Animal Breeding

 

BOI Promotion for Plant or Animal Breeding

The BOI provides incentives and benefits for doing business in Thailand within the plant or animal breeding industry. This incentive aids those companies that are not eligible for biotechnology activity. In order to qualify for the benefits, plant or animal breeding operations must meet certain conditions as set forth below.

 

The BOI conditions and incentives are summarized below:

  • Conditions:
  1. Projects must have research and development activities.
  2. For breeding of sensitive plants according to the policy of the Ministry of Agriculture and Cooperatives, projects must have Thai nationals holding shares not less than 51 percent of the registered capital.
  3. Projects must have expenses for salaries for R&D personnel of at least 1,500,000 baht per year.
  4. Projects located in the science and technology park promoted by BOI or one that is approved by the Board will receive an additional 50 percent reduction of corporate income tax for 5 years after the end of its corporate tax exemption period.
  5. Revenue derived from plant propagation after plant breeding in the project shall be regarded as revenue of promoted projects, except for the propagation of cassava.

 

  • Incentives:
  1. Exemption from corporate income tax for 5 years.
  2. Exemption of import duties on new machinery.
  3. Exemption of import duties on raw materials used in production for export.
  4. 100% foreigner ownership.
  5. Permit to own land.
  6. Permit to bring in skilled workers and experts to work in the Kingdom.

Contact MSNA Group to set up your BOI company in Thailand now.

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Thailand BOI for Digital Service and Software Platforms

BOI software platform

 

Thailand BOI for Digital Service and Software Platforms

The BOI provides incentives and benefits for doing business in Thailand within the expanding digital services industry. Such business operations include:

  • Software platform
  • Managed service
  • Digital architecture design service
  • Digital services such as FinTech, DigiTech, MedTech, AgriTech, etc.

 

The BOI conditions and incentives are summarized below:

  • Conditions:
  1. The project must hire digital specialists
  2. The project must have capital investment (excluding cost of land and working capital) not less than 1,000,000 baht.
  3. It must include digital service processes as approved by the Board.
  4. The project with an investment of 10 million baht or more (excluding cost of land and working capital) must be certified with ISO 20000 or other quality standard certificate as approved by the Ministry of Information and Communication Technology within 2 years from the full operation start-up date, otherwise the corporate income tax exemption shall be reduced by 1 year.
  5. Revenue derived from sales or the provision of services that are directly related to a promoted digital service business shall be regarded as revenue of such promoted business.
  6. Projects must gain approval from the Ministry of Digital Economy and Society before applying for investment promotion.

If you work with MSNA Group in applying for the BOI promotion, we will walk you through the process and make it very easy for you to write the details for the BOI application. You may want to read some of our BOI testimonials from our clients that we help get the investment promotion.

If you get the BOI for this business, the benefits are as follows:

  1. Corporate income tax exemption for 5 years
  2. Exemption of import duties on new machinery.
  3. Exemption of import duties on raw materials used in production for export.
  4. 100% foreigner ownership.
  5. Permit to own land.
  6. Permit to bring in skilled workers and experts to work in the Kingdom.

Contact MSNA Group now to start the BOI process.

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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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To register a Thai company with BOI or not

We often receive inquiries concerning Thailand company registration with BOI. For the benefit of those wondering whether to apply for BOI or not, below are some questions from one of our clients before they decided to register their software business and apply for BOI privileges.

Questions:

We are a software developer from Denmark. As what we understand, we must apply for BOI status, and we know that this may not be approved 100%. However, we will appreciate if you could give us advice on the following:

  1. What are the benefits of getting BOI promotion?
  2. The registered capital (1M Baht), do we have to show this amount? If not, what does it actually mean that it is “registered” then?
  3. We would like to have the company 100% owned by Danes, not Thais. Does that weaken our case with the BOI?

Answers:

  1. Benefits of BOI promotion

If what your new company will do is to develop software, then we can help you get a BOI promotion. Below are the actual benefits that will be given to your software business if you get approved.

Under Section 25, the promoted company can bring in the foreign technicians or experts, spouse and person under the guardian of such foreign technicians or experts, in to Thailand. The number of foreign technicians or experts and the period to work and stay in Thailand will be fixed as the Committee deems appropriate.

Under Section 26, the foreign technicians or experts, who are authorized to stay in Thailand under Section 25, shall be allowed to work only in the position that the Committee approves throughout the approval period.

Under Section 27, the promoted company is permitted to own the land according to the criteria approved by the committee.

Under Section 28, the promoted company is exempted for the import duty for the machinery as approved by the Committee.

Under Section 31;

Paragraph 2, the promoted company is exempted for the corporate income tax for the net profit generated from the promoted activity for a period of 5 years from the date you start to generate such income.

Paragraph 4, in case the promoted company suffers loss during the period of corporate income tax exemption under paragraph 2, the promoted company is allowed to carry over the loss to deduct from the net profit generated after the exemption period for a period of FIVE years after the end of the exempted period. The promoted company may deduct the loss from the net profit of any year or many years.

Under Section 34, the dividends derived from the promoted activity, which is exempted from corporate income tax under Section 31; do not have to be included for income tax calculation throughout the period of corporate income tax exemption of the promoted company.

Under Section 37, the promoted company is allowed to transfer money to overseas in foreign currency.

If you get BOI approval, your registered capital can be only Baht 1M (100% owned by the 2 Danes, and able to get more than 2 work permits), instead of Baht 4M if you will do it another way (51% Thai and 49% foreign share structure) because you will need 2 work permits for the 2 Danes (For non-BOI companies, the ratio of work permit to paid-up capital is 1: Baht2M.)

2. Registered capital

The registered capital is the capital you registered with the Department of Business Development that the company will have, but it can be different from the paid-up capital, which means the shareholders put their money into the company according to the number of shares held by them. In most cases, because the foreigner in the company needs a work permit, the paid up capital and registered capital both need to be Baht 2M for the company to be able to sponsor one work permit.

3. 100% foreign ownership

It will not affect the result of BOI approval at all whether you decide to register the company as 100% Danes owned. Actually the BOI’s purpose is to attract investment to the country so it is fine that the company will be 100% owned by foreigners.

We hope that the above information would be a great help to those who are still undecided. Please contact MSNA for expert advice on Thailand BOI application.

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Factory License Application – Steps and Timeline by MSNA

Question:

We would like to operate a factory in the industrial estate. How do you usually process the application for a factory license, say in Chonburi area? How long will it take to complete the application?

Answer:

As our company policy, we will require the first payment of our fees then, we will send to you the list of preliminary documents that we need in order to prepare the application.

It should take us 3-5 business days to finish the application after getting all information and documents from your side.

After submitting the application to the Industrial Estate Authority of Thailand (IEAT), the official will contact you to have a meeting to visit the factory site within 1-2 weeks if all documents are complete, which we will work with you for the most convenient time for the appointment of the meeting and the visit by the official. We will also consult with you and provide all support on the phone. If necessary, we will send our team to Chonburi to liaise with the IEAT officials.

It may take the IEAT official up to a few weeks (in most cases, shorter than that) for finish the evaluation of the project. Then the IEAT will notify us of its approval and we will request for the fees to pay to the IEAT before the licenses are issued.

Once we obtain the license, we will need 2 business days to translate it for you.

Contact MSNA for company registration, BOI promotion application and factory license application in Thailand.

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Thai Limited Company Registration – Corporate Name Reservation

Today, we talk about the first step of the company registration process, the corporate name reservation.

To reserve a name, the company can either submit a signed Name Reservation Form (one of the promoters is required to sign in such form) to the Department of Business Development of the MOC or fill in a Name Reservation Form and submit it through the Department of Business Development’s website.

The promoter is required to provide the requested company name together with two alternative names. The registrar will then examine the application in order to ensure that:

(a) No similar company name have previously been reserved; and

(b) The names do not violate any ministerial rules

If the applicant’s preferred name is in conflict with either of the above, that name will be rejected and the registrar will consider the two alternative names submitted. This process can normally be completed within 2 to 3 working days. If all three names submitted are rejected, the applicant will be required to re submit the form with 3 new names.

The registrar has considerable discretion with regard to the matter of company names. Oftentimes, the first name or even the first two names are rejected due to the violation of one of the two rules stated above. Once the name is approved, the corporate name reservation is valid for 30 days, with no extensions. However, after the name has expired, the promoter can still re apply for Name Reservation again and again if the name is still available.

We will talk about the next steps of the company registration process in the succeeding articles. Contact ThaiLawyers for company registration in Thailand.

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