If you’re thinking about setting up a business in Thailand with BOI (Board of Investment) promotion, you’ll need to meet certain investment requirements. Let’s walk through the essentials so you know what to expect.
Standard Investment Requirement
For most businesses applying for BOI promotion, the minimum investment is one million Baht. This amount doesn’t include the cost of land or working capital, as it’s meant to cover the core parts of the project itself. The idea is to make sure each business has enough funding to succeed and make a real contribution to the Thai economy.
Special Rules for Knowledge-Based Businesses
If you’re in a knowledge-driven field like software or research, the BOI’s requirements work a little differently. Instead of a fixed investment amount, these projects base their minimum investment on annual salary expenses. This way, businesses that rely heavily on skilled employees can focus their funds on building the right team and expertise.
Requirements for Larger Projects
For projects with an investment over two billion Baht (excluding land and working capital), the BOI will ask for a feasibility study. This study goes into details about the project’s goals, potential impact, and benefits to Thailand. This extra step helps make sure that large-scale projects fit well with Thailand’s economic goals.
Debt-to-Equity Ratio Guidelines
The BOI also wants to see a balanced approach to funding. For new companies, the debt-to-equity ratio should be no higher than 3:1. This guideline helps businesses avoid taking on too much debt, so they’re on solid financial footing from the start. For businesses looking to expand, the BOI reviews each situation individually, focusing on the company’s overall health and plans.
How We Can Help at Sukhothai Interlaw
With over 30 years of experience, Sukhothai Interlaw helps businesses navigate the BOI requirements with ease. Whether it’s understanding investment requirements or handling paperwork, our team is here to guide you through the process. We also provide support for contracts, escrow, and other important parts of setting up your business.
Partner with Sukhothai Interlaw for a Smooth Start
Setting up a business with BOI promotion can bring big advantages, but there’s a lot to consider along the way. At Sukhothai Interlaw, we’re committed to making the process clear and manageable. We offer practical support, drawing on years of experience to help you establish your business with confidence.
Ready to explore BOI opportunities? Contact Sukhothai Interlaw to discuss how we can help turn your plans into a reality.
