The Board of Investment (BOI) was established in 1997 and is the principal government agency for encouraging investment from both foreign and local entrepreneurs within the activities that it promotes.
Activities which are eligible for BOI investment promotion are classified into eight sections, as follows:
• Agriculture and agricultural products
• Mining, ceramics, and basic metals
• Light industry
• Metal products, machinery and transport equipment
• Electric industry and electric appliances
• Chemicals, paper, and plastics;
• Service and public utilities
• Technology and innovation development
Criteria for project approval:
• Value added of the project must not be less than 20% of sales revenue (except for projects in electronic products and parts, agriculture and agricultural products and coil center, all of which must have value added of at least 10% of revenue)
• Registered capital must be at least 25% of the total investment (debt to equity ratio no more than 3 to 1)
• Modern production machinery and processes (second-hand machinery is also allowed if certification is obtained)
• Adequate and efficient guidelines and measures to protect environmental quality and to reduce environmental impact
• Minimum investment of 1 million Baht (excluding land cost and working capital) for all eligible activities, except activities that include per annum salaries of experts as part of the minimum investment regarding software development as well as research and development activities where the minimum capital must be 1.5 million Baht
• Projects with investment capital exceeding 10 million Baht (excluding cost of land and working capital) must obtain ISO 9000, ISO 14000 or similar international standard certification within 2 years from the full operation start-up date
• Projects with investment capital of at least 750 million Baht (excluding cost of land and working capital) are required to submit a feasibility study
In general, activity-based incentives will be granted, including tax and/or non-tax incentives and simplification of application proceedings for a work permit, if the local company contributes to Thailand’s progress, provides new jobs, and stimulates the local economy.
BOI incentives are specified in the BOI certificate granted to successful applicants. If the applicant fails to meet the conditions (and remain in compliance therewith) the BOI certificate is subject to revocation.
Visas and work permit applications or renewals can be processed by the One-Stop Service Center for Visas and Work Permits within three hours if all required documents are provided. In addition, changing visa status (to non-immigrant status from tourist or transit), payment of fines, and processing of re-entry stamps, and many other transactions can also be completed at the One-Stop Service Center.