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BOI companies with incomes from various sources

Recently Thai Lawyers have received many inquiries from businesses that want to obtain BOI (Board of Investment) promotion. Most of them think that with the BOI status, they can own their business in Thailand 100% and can receive incomes from different sources. We want to explain here that having a BOI promoted company does not mean you can do any businesses. You can do only the business activity that the BOI approve on the BOI certificate.

For example, if you get the BOI certificate to do E-commerce platform, you need to start building your E-commerce platform inside the country and only charge the buyers and sellers on the platform for using your platform. (Just for E-commerce category, you can charge as a percentage of the transaction amounts). You cannot use the company to earn income from renting and selling real estate, consulting, trading goods, brokerage, etc.

Thailand has its Foreign Business Law, which allows foreigners to do certain business activities. For most business activities, if you do not want to have a Thai majority partner, you need to get a permission to operate the business. One way of owning your business 100% is to get a BOI promotion whose main purpose is to promote investment in the business categories that Thailand need for they create jobs or bring in new technologies. So if you want to know if your business is one of the BOI eligible activities, you should talk to us. We have the best solutions for you.

The post BOI Companies With Incomes From Various Sources appeared first on Thai Lawyers.

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MOTION PICTURE SUPPORT SERVICES

For foreigners who want to own a company in Thailand that provides motion picture support services, the way to do it is to get a BOI promotion. We would like to give you some useful information that you should know about this interesting activity before registering a company.

Benefits:
  • 5 year corporate income tax exemption
  • Exemption of import duties on machinery
  • Exemption of import duties on raw materials used in production for export
  • Non-tax incentives:
  • 100% foreign ownership
  • Permit to own land
  • Permit to bring in skilled workers and experts to work into the Kingdom

Getting a BOI certificate is not difficult if you understand the requirement and how to prepare an application that will get your project approved for sure. However, there is a learning curve, which, for some businessmen, is not worth it to try to get the BOI themselves.  If you choose to save time (we are talking about months!) and energy, contact Thai Lawyers at MSNA Group.

Now let’s see the conditions of this business.

Conditions:

Your company must have a registered capital of at least 1 Million Baht.

Motion picture support services shall include documentaries, television programs, animation and commercials, which have a scope of business, as follows:

  1. Rental services of movie production equipment and/or movie production props must have main equipment machinery, such as camera, grip equipment, light set, etc.
  2. Film development and duplication services must have main equipment/machinery, such as film development machine, film duplication machine, digital film duplication machine, etc.
  3. Sound recording services must have main equipment/machinery, such as digital sound recorder, digital sound editing machine, digital sound mixing machine, etc.
  4. Picture technical services must have machines and equipment capable of creating special pictures that are not possible with cameras. The service providers must have main equipment and machinery, such as standard definition/high definition digital recorders, editing suites, digital compositing and special effect creation, etc.
  5. Coordination services for foreign movie production in Thailand must include coordinating with related government agencies for permits, location scouting and sourcing of staff and movie equipment.
  6. Studio rental services for movie and television program production.

The post BOI Motion Picture Support Services in Thailand appeared first on Thai Lawyers.

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Thai Lawyers by Thai Lawyers - 6M ago

Open Restaurant in Thailand

Opening a restaurant in Thailand seems to be tough because there are a huge number of restaurants all over Thailand and it is really hard to compete against the Thai people since Thailand has a foreign business law that prohibits foreigners from doing most businesses. However, it does not mean that you cannot do it.

You will need to set up a company with at least 3 shareholders, and a Thai person must be one of them, who will hold at least 51% of the shares. In case you are American, you can be the majority shareholder of the company because of the Treaty of Amity between Thailand and USA.

Once you open a restaurant, if you want to get a work permit for yourself or a foreign employee, you must have at least 2 million Baht registered  and paid up capital and hire 4 Thai employees for each work permit. These ratios of 2M capital and 4 Thais per work permit apply to US and other nationalities alike.

Contact Thai Lawyers Ltd. for professional advice and best solutions for all your business needs in Thailand.

The post Open Restaurant in Thailand appeared first on Thai Lawyers.

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Setting up a chocolate factory in Thailand

A foreign client wanting to set up a chocolate factory in Thailand consulted with Thai Lawyers on the process of doing so. Here are the steps involved:

  • Register a new company. As you will be a manufacturer, you can set up your company without a Thai partner to hold 51% shares. You can own it 100%. However, you still need totally 3 shareholders.
  • You do not need to obtain the Foreign Business License (FBL). Thailand Foreign Business Law allow manufacturing business to be owned by foreigners 100% and you can sell your products that you produce in Thailand both retail and wholesale.
  • Get a construction license if you are going to build your factory building.
  • If your factory will not have more than 20 workers and the machines are not bigger than 20 horsepower, you don’t need a factory license. Otherwise you must get one from the Department of Industrial Works.
  • Get a permit to manufacture food and certificate for your food products.
  • Register in the VAT system. This is compulsory once your gross sales has reached Baht 1.8 M per year.
  • Register in the Social Security system once you have at least 1 employee.
  • Register with the Department of Business Development to file financial statements online.

As you can see the process is quite difficult, especially if you do not know Thai regulations and you do not speak Thai. That’s why you need to use reliable consultants like Thai Lawyers Ltd. to assist you throughout the entire process.

The post Setting Up a Chocolate Factory in Thailand appeared first on Thai Lawyers.

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Foreigners and manufacturing business in Thailand

Once you decided to manufacture goods in Thailand, two options are available for you: either rent a ready-made factory or buy (or lease) land and build your own factory.

Foreign Ownership of Land

While in general, foreign companies or individuals cannot buy and own land in Thailand, there are some exceptions. A majority foreigner owned company can buy freehold land for manufacturing purpose in two cases: having its project promoted by the Board of Investment (BOI) or having its factory inside an industrial estate (not just an industrial park). However, the exceptions are only valid for as long as your business operates. Once you close the company, you must immediately sell the land, as you cannot keep it for any other purposes (for example, investment).

The Board of Investment and the Industrial Estate Authority of Thailand offer many of the same benefits (tax and non-tax benefits). However, the additional advantages of locating your factory inside an industrial estate are:

  • An industrial estate offers ready to use infrastructure and provides maintenance of the whole estate.
  • Being in an industrial estate avoids the risk of off-estate land being rezoned.
  • IEAT (The Industrial Estate Authority of Thailand) offers a number of benefits which may be valuable to the manufacturers whose business activity is not one promoted by the BOI.
  • Setting up a factory outside an industrial estate generally requires the manufacturer to obtain an Environmental Impact Assessment (EIA) and a Factory License, which are not required in an industrial estate.

Foreign Business License

Everything you manufacture can be sold (retail or wholesale) in Thailand. You do not need to get a Foreign Business License for the retail or wholesale business activities. However, if your revenues are from services (consulting, repair and maintenance, etc) even though it is related to the products you manufacture in Thailand, you need a Foreign Business License to provide services.

Talk to ThaiLawyers today to start your manufacturing business the right way.

The post Foreigners and manufacturing business in Thailand appeared first on Thai Lawyers.

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Manufacturing of Ceramic Products

Thailand has been encouraging and promoting projects in the mining industry and manufacturing for many relevant products for economic benefits. The Board of Investment of Thailand has established a clear policy to welcome foreign investors to participate in the development of large-scale projects that involves minerals, ceramic and basic metals.

The condition and benefits of application for a BOI promotion for ceramic products are listed below:

* This excludes earthenware and ceramic tile manufacturing.

Conditions:

  • Project must have firing and/or annealing process.

Once promoted, incentives to be given are under the category of B1 which includes:

  • Exemption of import duties on machinery
  • Exemption of import duties on raw materials used in production for exports
  • 100% foreign business ownership
  • Permit to own land
  • Permit to bring in skilled workers and experts to work into the Kingdom.

Learn more about the activities that can be eligible for BOI promotion. Contact Thai Lawyers for assistance in registering your company under the BOI.

The post Manufacturing of Ceramic Products appeared first on Thai Lawyers.

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Thai Lawyers by Thai Lawyers - 7M ago

Importing Wine from France

To meet the requirements of importation of wine into Thailand, there are certain rules one needs to follow. Firstly, to register a business there needs to be 3 promoters. For the company to open up a warehouse in Thailand, they need to have a household registration number from the landlord where they are planning to locate. This will help in the registration process. Along with the household registration number, a copy of passport and their visa is required to further complete the registration of the business. The process will take up to one week if all documents are presented correctly.

After the registration of the business, the company needs to apply for couple of different licences to operate:

  • The first one is the importing licence which needs to be permitted from the government (FDA). This licence is to be renewed yearly. In order to obtain this licence , the company must show a sample of each wine type they are planning to sell in Thailand.
  • After this licence the company has to get a licence for the labels. The rules of Thai government are that any product needs to have a Thailand label. Labelled Licence is required for each type of different wines which the company is planning to import.
  • The third licence that the company must obtain is the Retail and Wholesale licence depending on how they are planning to sell their products in Thailand. Separate licences are required for retail and wholesale. This will be done through the Foreign Business Licence.

If a shareholder/promoter needs to get a work permit under the company, then they must have a capital of $2million baht and 4 Thai employees per shareholder.

The post Importing Wine from France appeared first on Thai Lawyers.

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Investment Promotion for Manufacture of Hard Disk Drive

Thailand since the last decade has been the biggest manufacturer of hard disk drives. Thailand offers low cost, literate and high quality labour and national infrastructure that facilitates the export market. The big digital companies are now manufacturing their products in Thailand to take advantages of these benefits. The Board of Investment promotes the business of hard disk drive manufacture with the conditions and incentives that could help you as listed below.

Conditions:

– The areal density of hard disk drives must not be less than 2,000 gigabits per square inch.

–  The cost of refurbishment of existing machines will be regarded as an investment and will be included in the calculation of corporate income tax exemption cap. That means the original cost of those existing machines can not be regarded as an investment. Normally in other BOI promoted categories, the machinery to be counted as investment in the business must be new.

 

Incentives:

  • An exemption of corporate tax for 8 years. The total amount of the tax exempted is not more than the total amount of investment you make in the promoted business.
  • Exemption of import duties on machinery
  • 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 into the Kingdom

Get in touch with us so we can help you set up your BOI company in Thailand.

The post Investment Promotion for Manufacture of Hard Disk Drive appeared first on Thai Lawyers.

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Thailand BOI for Biotechnology Industry

The BOI provides incentives and benefits for doing business in Thailand within the biotechnology industry. Some conditions must be met in order to capitalize from valuable benefits like 10-year exemption from corporate income taxes.

The BOI conditions and incentives are summarized below:

  • 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.

If your project is promoted by the BOI, here are the benefits you will receive:

  1. Corporate income tax exemption for 10 years with no limit on the income tax exempted.
  2. Import duties on new machinery are exempt.
  3. Import duties on raw materials used in production for export are also exempt.
  4. Foreigner can own the business 100%.
  5. The company, with a foreign majority ownership, can own land enough for its business.
  6. The company can bring in skilled workers and experts to work in the country.

Consult with ThaiLawyers for your Biotechnology business in Thailand.

The post Thailand BOI for Biotechnology Industry appeared first on Thai Lawyers.

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BOI Promotion for the manufacture of ecofriendly chemicals

The BOI provides incentives and benefits for doing business in Thailand within the chemicals, paper and plastic manufacturing industry. This includes the manufacture of ecofriendly chemicals or polymers or manufacture of products from ecofriendly chemicals or polymers that is incorporated within the same project as the manufacture of ecofriendly chemicals or polymers.

The BOI conditions and incentives are summarized below:

  • Conditions:
  1. The chemicals or polymers need to have less overall impact, assessed throughout their life cycles, on the environment. These products must be certified or can be proved to use raw materials from renewable resources, or use sustainable green chemistry in the production process, or they must be products that are biodegradable, and do not generate toxic substances.
  2. Must be assessed with an internationally-accepted standard such as Life Cycle Assessments (LCA) etc. before the full operation start-up date.
  • Incentives are A2 category:
  1. Exemption from corporate income tax for 8 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.

We are ThaiLawyers are expert in guiding our foreign clients to obtain their investment promotion from the BOI in Thailand. Contact us now.

The post BOI Promotion for the manufacture of ecofriendly chemicals appeared first on Thai Lawyers.

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