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Overview of Business in Thailand

:: Import and Export Regulations
:: Labour Regulations
:: Workers Compensation
:: The Board of Investment BOI
:: Factory Licensing & Regulations
:: Factory Operations & Expansion
:: Intellectual Property
:: Trademark Protection
:: Trademark Registration

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Business in Thailand - The Board of Investment (BOI)

Rapid growth of foreign and direct investment in Thailand during the 1990s has increased the need for trade and investment support services. As the existing supply has fallen short of demand, the Board of Investment (BOI) has decided to address the situation by offering incentives to a wide range of investment and trade support activities.

The range of activities eligible for promotion includes:

:: Controlling and advertising affiliated companies
:: All types of consulting services, except those engaged in:
- Buying and selling securities
- Foreign currency exchange
- Accounting
- Advertising
- Legal affairs
- Architecture
- Civil engineering

Please note:
Exceptions may be granted through permission extended by the Ministry of Commerce or concerned government agencies.

:: Information services related to source and procurement, but not brokerages or agencies
:: Engineering and technical services, except those related to architecture and civil engineering
:: Testing and certifying standards of products, production, and services standards
:: Exporting of all types of products
:: Wholesaling of all types of products within the country, excluding local agriculture products, secondhand products, art & crafts, antiques, and natural resources
:: Wholesaling and/or retailing of machinery, engines, tools and equipment
:: Provision of training on the use of machinery, engines, tools and equipment
:: Installation, maintenance and repairing of machinery, engines, tools and equipment
:: Calibration of machinery, engines, tools and equipment
:: Computer program (software) design and development

BOI offers privileges non-tax incentives, including:

:: Permission to own land required for your office
:: Permission to bring in foreign nationals to undertake investment feasibility studies
:: Permission to bring in as many foreign technicians and experts as you need
:: Permission to take or remit foreign currency abroad
:: No limit on number of shares owned by foreigners

Subject to reduced benefits for projects is Zone 1 (Bangkok and five surrounding provinces) and Zone 2 (ten adjacent provinces). Zone 3 (sixty adjacent provinces) is the most privileged zone. If the project is located in an "investment promotion zone" or is export-oriented, it may qualify for further discretionary benefits. Furthermore, operations licenses must be acquired from all relevant government agencies. Operating expenses must amount to no less than 10,000,000 Baht per year. This requirement shall consist of sales and administrative expenses, as set forth according to the Revenue Code. Also, operation plans must be approved by the Board of Investment.

Both foreign and local investors may apply for incentives under this promotion. Applicants can be either companies under Thai Law or companies planning to be established under Thai Law. An application form has to be fully completed at the time application for privileges are tendered.

For more information, please do not hesitate to CONTACT US.

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