Boi Advice

[psdone]

Hi,

I am about to setup a "small" business in Thailand, and I am wondering if anyone has had any luck with getting BOI incentives. I plan to open a small manufacturing office where we will buy parts from all over Asia and assemble and program handheld audio books for export.

I have looked into BOI and there is a 5 year tax holiday for "electronics" companies, so I am thinking of applying for it.

It is a lot of paperwork, and BOI requires us to incorporate using a LLC rather than a simple LP (more paperwork and expense), so I have my doubts if it is worth trying for, because I would hate to go through all the paperwork and delays only to get turned down.

Has anyone here had any experience getting BOI incentives ? If so, do you think we have a chance at this ?

Thanks for any words (kind or not),

Phil

[fraksken]

BOI is the way to go for you as it grants you several advantages.

(only 1 milion THB in 3 years have to be invested, you do not apply to the 4 thai employees, 1 farang rule, you can import without paying taxes, you can buy house, car, ...)

You can go to the SIPA offices and get them to help you fill in the BOI forms, they should do it (Free?).

Good Luck.

p.s. if at first fail, try again with other papers.

[temo1051]

I agree with Fraksken. You need to account for all the benefits. For me the import duty exemption has a significant impact on my costs. Also keep in mind what BOI zone you are going to set up your operation. It makes a difference on what privileges you will receive

[Musongman]

I thought this was going to be a thread about how to get to BoyzTown....where's Jinthing when you need him?

[fraksken]

I thought this was going to be a thread about how to get to BoyzTown....where's Jinthing when you need him?

In Pathong: the paradise district ^

[psdone]

I agree with Fraksken. You need to account for all the benefits. For me the import duty exemption has a significant impact on my costs. Also keep in mind what BOI zone you are going to set up your operation. It makes a difference on what privileges you will receive

Thanks Guys,

I will go for it. Wish me luck ....

Take Care,

Phil

[Sunbelt Asia]

From your brief description, I'm assuming this business activity falls under BOI Eligible Activity Section 5.4.1 Manufacturing of Consumer Electronics. But to be certain, more input are required. Whereas the incentive package are also determine by the business location.

In your BOI application (business proposal) you are required to provide three years financial and business forecast. Apart from having your business objective matches with the BOI Eligible activity list, if your business proposal meet all aspect established and required by the BOI, your application would have a high chance of success.

Please be informed that in most cases, the minimum investment required by the BOI is 1 million baht excluding the land value and the working capital. But there would be an exemption in the case if the company is categorized as an SME business, which would then be just 500,000 baht required.

You can initially apply for a BOI Promotion on an individual basis, but once the project has been preliminary approved, you will be require to establish a juristic identity (Limited Liability Company) as it is the BOI’s policy of granting the BOI Card/Certificate to a Limited Liability Company.

Our legal advisors are available to assist you with this and other business matters you should need assistance with.

www.sunbeltasia.com

26th Floor Fortune Town BR, 1 Ratchadapisek Rd, 10400 Bangkok

Tel: 02-642-0213 Fax: 02-641-1995

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