BOI Startup Requirements

[iLaunch]

Hi,

I am moving to Thailand as I want to use it as the base for an ecommerce software platorm that has just been completed. We want to target Thailand with this software product. I was wondering if anyone can provide answers to the following questions :

1. On the BOI website it does mention that preference is given to ecommerce companies setting up in Thailand. Can anyone validate this from their own experience and give me some more information on the process. Is it valid for any ecommerce company including startups.

2. WHat are the minimum number of Thai staff to be employed by a BOI registered company.

3. What is the minimum capital requirements for a BOI company.

4. I am coming from Australia what type of visa do I need to get and can I come on a Tourist visa and then have it changed to a visa that is valid for this activity.

Many thanks in advance.

Marcus

[ubonjoe]

Have you download the guides on this webpage they may contain more than you will find on the website. http://www.boi.go.th/index.php?page=guides

I can't answer all your questions.

If you are working for or have a registered company in Australia you should be able to get a non immigrant B visa with a letter from the company. A multiple entry probably be good because you might be making several trips before getting the operation setup.

Have you contacted the BOI office in Australia? The might be able to assist you.

Contact info.

Suite 101, Level 1, 234 George St.
Sydney NSW 2000
Tel: 02 9252 4884
Fax: 02 9252 2883Suite 101, Level 1, 234 George St.
Sydney NSW 2000
Tel: 02 9252 4884
Fax: 02 9252 2883
E-mail: [email protected]
E-mail: [email protected]

[iLaunch]

Thank you very much. The documents are very helpful.

[manarak]

1) yes, I have tried that process and visited the BOI in Bangkok to give a presentation to BOI officers

yes, they promote ecommerce/software companies provided you don't want to use the software yourself and your target market is not Thailand, i.e. your company only makes/supports software that will overwhelmingly be sold outside of Thailand

2) no formal minimum

3) 2 million THB

4) you will get a 3-month single entry B visa in the Thai embassy in Australia, which you then have to change into a 1 year B visa

[ubonjoe]

4) you will get a 3-month single entry B visa in the Thai embassy in Australia, which you then have to change into a 1 year B visa

If he has a registered company he can get a multiple entry visa from one of the honorary consulates. That would allow him more time to get things set up.

He will not get a B visa here. If company he forms here can qualify he would be able to get a one year extension of stay.

But for a new company he might well have to get a multiple entry B visa because of the tax record requirements to get the extension..

[simple1]

OP: The Australia/Thailand FTA also talks to the export of software and services for Australian companies to Thailand. Perhaps it makes sense for you to contact DFAT to obtain clarification and advise.

Requests for information and advice should be directed to:

• Thailand Desk
  Department of Foreign Affairs and Trade
  R.G. Casey Building,
  John McEwen Crescent,
  Barton, ACT, 0221
• Phone: (02) 6261 1111
• Email: [email protected]

https://www.dfat.gov.au/fta/tafta/guide-to-the-provisions.html

[recycler]

You need 4 Thai employees for every foreign workpermit this also applies to projects under BOI, only the procedure is facilitated and you can get a longer period than 1 year per workpermit.

You have to bare in mind that the BOI program also comes with a lot of rules and paperwork that can be heavy burden and make you less flexible.

Basically the BOI offers you a tax holiday of up to 8 years on investments you make in Thailand in production that you export and let you import equipment taxfree. If you are not exporting and not importing equipment you may have very little benefit.

Get in touch with the Australian Thai Chamber of commerce, they sure have members with BOI experience.

[PattayaPhom]

You need 4 Thai employees for every foreign workpermit this also applies to projects under BOI, only the procedure is facilitated and you can get a longer period than 1 year per workpermit.

You have to bare in mind that the BOI program also comes with a lot of rules and paperwork that can be heavy burden and make you less flexible.

Basically the BOI offers you a tax holiday of up to 8 years on investments you make in Thailand in production that you export and let you import equipment taxfree. If you are not exporting and not importing equipment you may have very little benefit.

Get in touch with the Australian Thai Chamber of commerce, they sure have members with BOI experience.

Not sure you need the 4 Thais for every WP

[ubonjoe]

Four Thai employees are needed for every work permit and extension of stay.

[ubonjoe]

Off topic post removed.

[iLaunch]

To manarak,

Did you succeed in getting BOI status. In terms of the interview are you able to elaborate on the type of questions asked and how long it lasted.

Thanks in advance,

Marcus

[manarak]

4) you will get a 3-month single entry B visa in the Thai embassy in Australia, which you then have to change into a 1 year B visa

If he has a registered company he can get a multiple entry visa from one of the honorary consulates. That would allow him more time to get things set up.

He will not get a B visa here. If company he forms here can qualify he would be able to get a one year extension of stay.

But for a new company he might well have to get a multiple entry B visa because of the tax record requirements to get the extension..

my mistake, I meant an extension of 1 year.

I had my company already set up, but got only a single entry B visa in Switzerland

[manarak]

To manarak,

Did you succeed in getting BOI status. In terms of the interview are you able to elaborate on the type of questions asked and how long it lasted.

Thanks in advance,

Marcus

No, I did not get BOI status because of the restrictions I mentioned.

The type of questions pertain to your CV, studies, qualifications, the business plan, if you plan to use imported hardware and software, thai employees, your business model, etc.

I even planned to follow the Thai standard for software development, ISO 29110 which I call "Systems Engineering Lite" (and ITIL for operations).

My plan was to program, sell and support internet software, and I wanted to also operate the company's own sites with that software from Thailand.

So I planned 3 activites:

- program and sell the software and support it for foreign clients => OK for BOI

- program and sell the software and support it for Thai clients => NOK

- operate the company's own sites on the internet => NOK

- hosting for foreign or Thai clients => NOK

- payment solutions integration => NOK

- training and teaching => only for the software developed

- export-trade of Thai products => NOK

it seems they want to limit the BOI's promotion to activites that are pure production, i.e. make the software, excluding any commercial activity around it. The restrictions make it impossible to properly service a client under BOI scheme.

So a company would have to setup an office in Thailand that would purely design and program the software and then export it to the commercial headquarters that would be located in another country, from where it could be sold to international clients.

In the process, Thailand loses all the tax income that it could derive from the commercial activity, but it's up to them IMHO.

Another point which they didn't like is my plan to finance the company through shareholder current account. I would have needed approx. 9 million THB to fully finance over a period of 3 years, but I wanted to put only 2 million in capital and the rest as a current account. The advantage of current accounts is that they can pay interest and can be paid back at any moment.

So I decided the BOI was not for me.

And mentally I added that Thailand was not serious in its goal to promote new technologies.

Maybe they are more flexible with multimillion dollar projects, but they shoot themselves in the foot because most large companies started very small.

The officer was competent and intelligent, she spoke English well and understood what I wanted to do. Once it became clear though that the BOI would be of little interest to me, I decided to cut short after 30 mins, I guess the length of the interview would have been approx 90 min. otherwise.

Edited January 16, 2014 by manarak

[iLaunch]

Many thanks for that manarak.

[PattayaPhom]

Four Thai employees are needed for every work permit and extension of stay.

Although a moot point for the OP that's interesting as there was a thread on here last year about a Scandinavian company in Hua Hin with over 100 employees and was said that BOI companies didn't need the requirement of 4/1

Sent from my ST27a using Thaivisa Connect Thailand mobile app

[ubonjoe]

Four Thai employees are needed for every work permit and extension of stay.

Although a moot point for the OP that's interesting as there was a thread on here last year about a Scandinavian company in Hua Hin with over 100 employees and was said that BOI companies didn't need the requirement of 4/1

Sent from my ST27a using Thaivisa Connect Thailand mobile app

The baseline number is 4 employees to get the work permits and extensions.

For large companies that can employ large numbers of Thais they don't have to show the same proof as others. If I recall correctly it is something like 200. Registered capital also comes into to it also.

[manarak]

Four Thai employees are needed for every work permit and extension of stay.

Although a moot point for the OP that's interesting as there was a thread on here last year about a Scandinavian company in Hua Hin with over 100 employees and was said that BOI companies didn't need the requirement of 4/1

Sent from my ST27a using Thaivisa Connect Thailand mobile app

Yes, the requirements are not always rigid.

For start-ups the ratio can be 2 to 1 for a couple of years.

For very specialized staff that is not available in Thailand, the BOI has the power to grant authorization, in cooperation with the department of labor, to employ foreigners independently from any ratio on a case to case basis.

[innerspace]

Absolutely no limit on foreign/thai staff for boi work permits or extensions of stay. We have 20 thai and 20 work permits on boi.

Nothing high on our registered capital.

Also restrictions as manarak said are not an issue you just cant use boi priviledges (tax,wp etc) for those bits but you can do them within the same company. One company can have multiple boi agreements for different projects.

Sent from my GT-N7100 using Thaivisa Connect Thailand mobile app

[manarak]

Absolutely no limit on foreign/thai staff for boi work permits or extensions of stay. We have 20 thai and 20 work permits on boi.

Nothing high on our registered capital.

Also restrictions as manarak said are not an issue you just cant use boi priviledges (tax,wp etc) for those bits but you can do them within the same company. One company can have multiple boi agreements for different projects.

Sent from my GT-N7100 using Thaivisa Connect Thailand mobile app

correct - in my case, the part about building software was just a small part of my activity, so getting promotion for just that part wasn't interesting for me.

[philw]

Four Thai employees are needed for every work permit and extension of stay.

Not correct, I know two BOI approved companies with minimal Thai staff ( couple of office girls ) and 7 or 8 work permits.

They are both computer based marketing companies.

[iLaunch]

Hi Philw,

Are you able to find out the firm they used to apply for BOI status.

Thanks,

Marcus

[malofa]

I've also a BOI company and you don't need any Thai employees.

Also I've 3 work permits on the company. For sure ... the BOI will ask for your bussiness plan and you've to show them where you will stand in 3 years.

If you do all work correct, and by the law, there's no problem.

If you want to have my lawyers info please give me a PM.

[samran]

Previous two firms I worked for were BOI and the 4 to 1 requirement was waived. I thought this was standard for all BOI entities.

[Mario2008]

There are many differences with regards to BOI approved companies and regular companies when it comes to dealing with labor and immigration. Many comments about work permit and immigration regulations do not apply to employees of BOI approved companies.