5 Reasons for not investing in Thailand with the BOI
Not every company is eligible for the Board of Investment (BOI) promoted status, nor indeed do all companies want to go through the steps required in the process when they’re investing in Thailand. As stated in other articles, the process is quite complicated and there are strict criteria for the company to qualify. Going through the process may seem like a waste of time if you can setup a business legitimately without going down this route.
One reason that you may choose not to follow the BOI path when you’re investing in Thailand is because you feel that it is not suitable for small companies like the one you are running or planning to run. For example, you may be starting a small retail shop or a restaurant so you would not be eligible but there would be no real benefit for getting this kind of business in Thailand promoted status anyway. The benefits and incentives do not real bring any improvement to your business or make it more profitable.
Another reason that you may not be interested in BOI status is because you only require 1 or 2 work permits as you intend to run a small business and the other incentives again offer little attraction. Long applications may seem unnecessary as you will get the work permits you require because you meet all the criteria.
In a lot of cases the reason for not apply for BOI status is because the incentives are not relevant to the business you’re starting in Thailand. This is probably the most obvious reason for not applying. If all the attractions of tax incentives and such like offer no significant gain to your investment in Thailand, why would you both to apply with all the additional work that was required?
The strict criteria that are in place may actually be a hindrance to registering your company in Thailand if you were to fully comply. If that were to be the case then again, applying may actually have a detrimental effect on your business, so therefore something certainly to be avoided when you’re investing here.
It is also possible that your business was established prior to the BOI becoming available. The BOI process is something that is relatively recent. Many businesses in Thailand have been established long before the BOI ever came into being so are unable or unwilling to subscribe – meaning that it is largely irrelevant to them.
The information provided is correct at the time of writing but is subject to change. It is always advisable to speak to an expert to get correct, up to date advice prior to commencing your business.