Board Of Investment Promotion

[SeaVisionBurma]

After much deliberation I have decided to look into the setting up of a business in Thailand, at this stage likely to be the manufacturing of remote security and surveillance cameras.

A Bangkok legal contact has suggested I try for BOI promotion with a minimum of 1 million baht (not including capital) or 2 million baht (including) - is this info correct?

I would like further explanation and advice on this from my fellow board members who are in-the-know. Also any other methods to go about this set up which differ from this BOI could be looked at.

Ideally I want to set up a simple office in BKK or Phuket, there would only be one staff, plus myself, and the actual putting together of the components could be contracted out to a small established electronics shop as the materials are mostly imported.

Self 30-something Australian, resident in Myanmar

Please advise!

(edited after reading George's standing instruction regarding posts!)

Edited March 25, 2004 by SeaVisionBurma

[dr_Pat_Pong]

The BOI is interested in decentralization of the operation, and significant export orientation. Will those things suit you ?

[SeaVisionBurma]

Thanks Dr.

Significant export orientation is okay - the units would be nearly all sent to O/S buyers.

Please explain decentralization in more detail

Thanks

SVB

[Indo-Siam]

First, determnine why you want to pursue BOI promotion. There afre four main potential benefits:

1. You may be majority or fully foreign owned.

2. You may avoid import duties on capital equipment and raw materials for some period.

3. You may avoid corporate income taxes for some period.

4. You gain access to the One-Stop service center for work permit and entry permit.

Caveats:

1. Your total cumulative exemption from corporate tax cannot exceed your initial capitalization amount (plus any added capitalization you inject).

2. Whatever your promotional approval period,it is lessened by one year, if your factory does not achieve ISO 9000 series certification within two years (but this rule applies only to BOI companies with capitalization of 10 million baht or greater)

The hassles and expenses associated with BOI processing and pursuit of ISO certification rapidly offset the benefits, unless:

A) Your initial capitalization will be large, and you expect to make big profits within the promotional period.

Your proposed factory will import substantail capital equipment, or raw materials, that have high import tarriff.

So - how does your proposed activity stack up in light of the above considerations?

Most small-time operators are probably better off bypassing BOI promotion.

If you do decide to pursue BOI, or you want assistance with other aspects of launching a business or factory here in Thailand, I'd welcome a chance to review with you how my company can assist. If you sent me an e-mail meesage to which I can reply with attachments, I'll send you some initial info.

Good luck!

Steve Sykes

Managing Director,

Indo-Siam Group

Bangkok

[email protected]

H/P: (66) 1-936-2247

www.thaistartup.com

[SeaVisionBurma]

Thanks Steve,

That makes it a lot clearer - as I understand it unless I'm going to have a revolutionary new whiz-bang fast selling success, I might be better off forming a smaller company in the usual manner.

I'll pm you.

Best regards

SVB

[dr_Pat_Pong]

Thanks Steve,

That makes it a lot clearer - as I understand it unless I'm going to have a revolutionary new whiz-bang fast selling success, I might be better off forming a smaller company in the usual manner.

I'll pm you.

Best regards

SVB

You are on your way SVB. Steve knows his job.