LTD to BOI ? Possible ?

[JohnnyBKK]

Hello,

 

Is it possible to change an ltd compay to be a BOI company ?

 

Thanks.

[Arkady]

No. You need to apply for BOI privileges with a business plan before you set up the company. They only want clean companies with no pre-existing activities. This is normal in Thailand for any special privileges, e.g. US Treaty companies, licences in the financial sector all start with an application for the privilege and establish company after approval.  The existing company can be the shareholder of the new company though.  

[JohnnyBKK]

What I can do is to tell the BOI board that the new BOI company will acquire all the assets of the LTD to start a new business, and close the ltd with empty books.

[Arkady]

3 hours ago, JohnnyBKK said:

What I can do is to tell the BOI board that the new BOI company will acquire all the assets of the LTD to start a new business, and close the ltd with empty books.

That might work but generally the BOI likes to see completely new investments in green field projects in sectors and parts of the country that they are currently offering to promote. Taking over the assets of an existing non-BOI promoted business is not a green fields investment and I would be concerned that might disqualify your business plan from consideration by the BOI. If you got approval with tax benefits and acquired an existing business and/or assets, the Revenue Department would see that in the accounts and might challenge your tax benefits which would be a tedious and costly process.  Personally I would be inclined to keep a new  BOI company absolutely clean for as long as its privileges last.   

[blackcab]

Are you aware the BOI companies are often scrutinised much more closely due to the benefits they receive?