The Thailand Board of Investment (BOI) was set up by the Thai Government to promote industry in the nation. Although the BOI allows you to apply to them before company registration in Thailand, there are a number of advantages available to you should you decide to register before application. First of all, if you decide to apply for a BOI promotion as a foreign company, it will be necessary to provide corporate documents along with a variety of other papers that will need to be translated.
With company registration in Thailand, you get to avoid this long and tedious administrative process. Additionally, expect the BOI to take several months in order to process your application. Instead of waiting with bated breath to see if your application is successful, you can begin leasing the business and taking care of other formalities. In essence, you should be optimistic and be ready to do business by the time your application is processed.
Do You Need A Legal Team For A BOI Application?
There is one school of thought which suggests that lawyers are not needed because the BOI team speaks English and other languages fluently. However, if you take this risk, there is every chance that you won’t fully grasp what the BOI promotion actually means. A mistake commonly made by foreign investors in every part of the company registration in Thailand process is to assume that a certain process is the end of the matter. The BOI application is one such instance.
You need to understand that there are many more hurdles after the application. Even after you receive the BOI license, they continue to check on your progress and you may be asked to complete certain tasks. There is also the danger of overestimating profits, objectives and level of investment in order to be assured of receiving the BOI license. This is a grave error because the organisation expects you to meet all of the targets you set yourself. Aim too high and you may well have your license taken away after failing to meet these objectives. As a result, you are better off using a legal team in order to fully understand what the BOI expects as well as better knowledge of the company registration in Thailand process.
Not Understanding What Tax HolidayMeans
When foreign investors hear the phrase ‘tax holiday’, they automatically assume that they will receive a massive tax incentive in order to invest in what the Thai government views as a priority sector. While there are incentives to be had, you will still be asked to pay withholding tax and VAT so there is no guarantee that your business will receive the tax holiday you believe you are entitled to. Then there is the small matter of the fact that the BOI and Revenue Department are notorious for having different objectives.
If you want to have all bases covered when it comes to your BOI application and any other aspect of company registration in Thailand, it would be prudent to contact a legal team today in order to ensure smooth sailing.
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