Introduction
Thailand Board of Investment (BOI) offers a wide range of incentives to promote investment in targeted industries in Thailand, including tax exemptions, foreign ownership privileges, and facilitation of visas and work permits. However, obtaining BOI promotion requires more than simply meeting minimum criteria. It involves demonstrating real economic value, technological contribution, and a well-structured business plan.
This article outlines the key steps and practical considerations for businesses seeking BOI promotion, based on both official requirements and common practices observed during the application process.
Step 1: Determine Eligible Business Activities
Your business must fall within the categories eligible for BOI promotion which are broadly divided into 4 groups:
- Agriculture, Food, Biotechnology, and Medical Industries
- Machinery, Automotive, Electrical Appliances, and Electronics Industries
- Metal, Materials, Chemicals, Petrochemicals, and Public Utilities
- Digital, Creative Industries, and High-Value Services
Although, most BOI-promoted projects relate to manufacturing, advanced technology, innovation, and targeted service sectors, the BOI also promotes certain service-based businesses that support international operations, such as:
- International Business Centers (IBC)
- Trade and Investment Support Offices (TISO)
- Regional Procurement Offices
- Logistics and supply chain management services
However, incentives for these service projects are generally limited to non-tax privileges, such as 100% foreign ownership, visa and work permit facilitation for foreign experts
Step 2: Assess Investment Size and Business Scale
The minimum investment requirement is THB 1 million, excluding land costs and working capital. This amount must be invested within the first three years after BOI promotion approval. Eligible investment includes:
- Construction or renovation costs or long-term lease (registered with the Land Department)
- Machinery (for manufacturing businesses)
- Computer hardware and software (for digital/service businesses)
- Pre-operating expenses (e.g., company registration, legal fees, travel expenses)
- Fixed assets (e.g., furniture, servers, office equipment)
Practical Insight: BOI officers generally expect evidence of real business operations, including skilled personnel and technological contribution. Very small projects with only 1–2 employees and small scale of investment may face challenges unless they demonstrate strong innovation or proprietary technology.
Step 3: Prepare a Clear Business Plan
A project applying for promotion from the Thailand Board of Investment must be a new investment project, meaning no investment should begin prior to approval. For existing businesses in Thailand, the BOI project must be clearly separated from current operations, and in practice, establishing a separate legal entity is often recommended for clarity and compliance.
The project must meet the value-added requirement of at least 20% of revenue (with a reduced threshold of 10% for certain sectors such as agriculture and electronics), and should adopt modern production or service processes using new machinery, unless there is a justified reason to use second-hand equipment.
A clear and concise business plan is essential, covering the company background, revenue model, investment plan, and product or service details, supported by relevant materials. The BOI generally favors projects that demonstrate readiness to proceed, including a defined location, clear target customers, and a genuine ability to commence operations in the near term.
Step 4: Prepare for the BOI Interview and Evaluation
Reaching the interview stage generally indicates a high probability of approval (approximately 80–90%). However, the outcome still depends on how the project is presented and evaluated.
Key Evaluation Criteria Used by BOI Officers
In evaluating a project, the Thailand Board of Investment focuses primarily on the substance and credibility of the business.
For example, software development projects should involve genuine technology development rather than basic services such as website creation, IT outsourcing, or e-commerce. It is more likely to be approved if it involves areas such as SaaS, AI, data analytics, or proprietary software. In addition, the company must demonstrate a qualified technical team in Thailand with clear hiring plans.
In addition, the investment plan must be realistic and aligned with actual operations, covering salaries, equipment, and development costs. At the same time, the business must present a clear and credible business model, including defined target customers, market scope, and revenue generation, with scalable or international potential viewed favorably.
The BOI also considers the project’s economic contribution to Thailand, such as local employment, technology transfer, and creation of intellectual property.
Finally, the experience and credibility of the management team are also important factors, and a lack of relevant background may result in closer scrutiny during the approval process.
Conclusion
Obtaining BOI promotion is not merely a matter of meeting minimum investment thresholds. It requires a well-prepared project that demonstrates genuine business substance, technological capability, and economic contribution to Thailand.
Successful applicants typically present:
- A clearly defined and eligible business activity
- A realistic and sufficiently funded investment plan
- A competent technical team
- A credible and scalable business model
By aligning your project with these expectations and preparing thoroughly for both documentation and interview stages, you can significantly improve your chances of securing BOI promotion and benefiting from the incentives offered in Thailand.
