When allowed to work when starting BOI company?

[Chief89]

Dear expats,

I have a question regarding work permit when opening a BOI company.

From what point are you allowed to work / do tasks in Thailand?

The procedure takes 3 – 6 months to launch a BOI company, but of course you need to do some preparations before the launch of your company (promote, hire / train staff, negotiate with suppliers, etc.)

So my question is: do you get a work permit at the beginning of the process? Or are you only allowed to work when everything is completed? (which is almost impossible.)

And if it’s not allowed: what is a good legal solution to overcome this situation?

Thanks in advance ! J

[eskatonia]

The BOI process is really designed for companies who start the process outside of Thailand and just do trips back and forth to set up an office here. If you try to be 100 percent legal it would be almost impossible to get anything done as even interviewing Thai staff would be counted as work, which you can't do until you have a work permit, which requires having Thai staff.... catch 22. I've heard that some people got Work Permits at the start of the BOI process some years ago, but it was all tightened up last Jan (Jan 2015). In my case I started a non BOI company, hired four Thais and got my work permit then six months later got BOI approved.

Even so when I tried to get the one year extension on my first 90 day B visa , I had four Thai staff , but I hadn't had them on the payroll for 3 months, so rejected and had to get another 90 day visa (leaving the country) then approved the second time round. This is despite the fact my work permit had already been approved for a full year, that didn't matter at all to Immigration, different rules and requirements.

AFAIK the general practise if you are starting a company here, is that people work while getting all the paperwork together for a work permit, while that might be illegal under the letter of the law, as you say it's almost impossible to do it any other way if you're already here.

Edited July 4, 2016 by eskatonia

[AjarnMartin]

Excuse my ignorance Chief, but what is a BOI company?

Thanks, Martin

[eskatonia]

A company that's been approved by Thai Board of Investment which gives you some tax benefits and easier restrictions from some rules (eg not having to have a strict ratio of four Thai's for each Foreigner)

Edited July 4, 2016 by eskatonia

[Chief89]

Thanks for your message Eskatonia! J

It’s good to read that the process ca be started from another country, I’m still in my country a.t.m. so will look at the possibilities to start it here already. Maybe it will shorten my “illegalness” with a few months.

And yes, a BOI (Board of Investment) company has some advantages over a “normal” Thai company. As Eskatonia said it doesn’t have the 1:4 work permit rule, another big benefit is that it can be 100 % foreign owned (including land, houses, ect.)

[eskatonia]

another big benefit is that it can be 100 % foreign owned (including land, houses, ect.)

Yeah that's true in theory, but maybe not in practise. I originally applied for BOI as 100 percent foreign owned, got told "get a thai partner and we'll approve it , or maybe wait another six months extra and maybe approve, maybe not". You also need a foreign business license as well if you're 100 percent foreign owned, which can take 3 months on top of the BOI process. In the end I couldn't wait so I got a Thai partner. Maybe if you're a really big company you can pull this off, but it's not easy and they seem to discourage it and really push you towards having a Thai partner. Again this all changed last year, 3 or 4 years ago I believe it was much easier to get approved as 100 percent foreign owned.

But yeah, check your local Thai embassy to see if they have a BOI office attached to them. If they do then it will all probably go smoother working through them and doing as much as possible before you move over here, from what I've heard they are a lot more lenient on approvals, work permits and visas when done in your home country.

Edited July 4, 2016 by eskatonia

[ericthai]

Our company is BOI, however it took longer than 6 months. Also you cant just open a BOI company, there are guidelines the must be met to get approval.

We started our company and had it up and running for 2 years before we applied for BOI. Due to the market we were in and the geographical location of our factory

we were able to get BOI.

I suggest you start the company and then apply for BOI. You can start the company with you and one or two employees and then bring it up later to the required 4 to

qualify for a work permit. You will need to get a B visa. I would try and get that at an embassy or consultant in your home country as it will be easier. Try and get a 1 year mulit-entry

B visa as around Thailand you can only get 3 month B visa. What type of business are you planning on opening? Wish you luck, we had some very tough years getting started but in the end

it was well worth it.

[eskatonia]

Also you cant just open a BOI company, there are guidelines the must be met to get approval.

If you are in certain high priority areas (software or ecommerce are two of them) you may well be able to start a company and get BOI immediately. From what I've been told they'll pretty much approve anything in those areas as long as you can show them something of interest and have an at least plausible business plan. In my case I still needed the 2 million baht registered capital.

[ozterix]

Yes, if you are in SW or Multimedia, you can get BOI immediately.

I processed my application directly with the BOI and got approval in a few months. The fact was that as soon as I submitted my application, I got a visa and a document that allowed me to work for my company immediately.

I created 2 BOI companies in the SW industry in Bangkok, both got BOI approval within 3 months, 5 months to get all documents including VAT registration. I was never asked a bribe, I was always welcome by the BOI, I was supported and helped to fill in all the forms without any problems.

I suggest you make an appointment at the BOI, bring your business plan and be prepared to defend your idea, if it is worth it to them, they will fully support you.

It is worth giving it a chance, the benefits you get are as above but there is more, you have 3 years to prepare your business and go into production, you then have 8 years without corporate taxe, your clients do not have to withhold taxes when they pay your service, you can have accounts in foreign currency, you can purchase equipment for your business tax free, you can send money overseas, you have priority at immigration at any Thai airport (you can use the diplomat lane), etc...

It is a very serious advantage

oz

[Chief89]

Thanks for the replies guys! I appreciate it! J

another big benefit is that it can be 100 % foreign owned (including land, houses, ect.)

Yeah that's true in theory, but maybe not in practise. I originally applied for BOI as 100 percent foreign owned, got told "get a thai partner and we'll approve it , or maybe wait another six months extra and maybe approve, maybe not". You also need a foreign business license as well if you're 100 percent foreign owned, which can take 3 months on top of the BOI process. In the end I couldn't wait so I got a Thai partner. Maybe if you're a really big company you can pull this off, but it's not easy and they seem to discourage it and really push you towards having a Thai partner. Again this all changed last year, 3 or 4 years ago I believe it was much easier to get approved as 100 percent foreign owned.

But yeah, check your local Thai embassy to see if they have a BOI office attached to them. If they do then it will all probably go smoother working through them and doing as much as possible before you move over here, from what I've heard they are a lot more lenient on approvals, work permits and visas when done in your home country.

To make it clear: you can only apply for a foreign business licence AFTER the BOI procedure has been done? So 3 – 6 months (BOI) + 3 months (foreign business licence) = 6 - 9 months in total?

It’s not possible to do both procedures at the same time?

Our company is BOI, however it took longer than 6 months. Also you cant just open a BOI company, there are guidelines the must be met to get approval.

We started our company and had it up and running for 2 years before we applied for BOI. Due to the market we were in and the geographical location of our factory

we were able to get BOI.

I suggest you start the company and then apply for BOI. You can start the company with you and one or two employees and then bring it up later to the required 4 to

qualify for a work permit. You will need to get a B visa. I would try and get that at an embassy or consultant in your home country as it will be easier. Try and get a 1 year mulit-entry

B visa as around Thailand you can only get 3 month B visa. What type of business are you planning on opening? Wish you luck, we had some very tough years getting started but in the end

it was well worth it.

As far as I know, my company matches the criteria to open a BOI.

If you don’t have a work permit, but are in Thailand under a B Visa and have a Thai company, are you allowed to work for the company then? Or is it still illegal?

What’s the catch under this construction?

The business I’m in is E-commerce.

[Chief89]

Also you cant just open a BOI company, there are guidelines the must be met to get approval.

If you are in certain high priority areas (software or ecommerce are two of them) you may well be able to start a company and get BOI immediately. From what I've been told they'll pretty much approve anything in those areas as long as you can show them something of interest and have an at least plausible business plan. In my case I still needed the 2 million baht registered capital.

That’s good to hear, my business is an E-commerce business.

Yes, if you are in SW or Multimedia, you can get BOI immediately.

I processed my application directly with the BOI and got approval in a few months. The fact was that as soon as I submitted my application, I got a visa and a document that allowed me to work for my company immediately.

I created 2 BOI companies in the SW industry in Bangkok, both got BOI approval within 3 months, 5 months to get all documents including VAT registration. I was never asked a bribe, I was always welcome by the BOI, I was supported and helped to fill in all the forms without any problems.

I suggest you make an appointment at the BOI, bring your business plan and be prepared to defend your idea, if it is worth it to them, they will fully support you.

It is worth giving it a chance, the benefits you get are as above but there is more, you have 3 years to prepare your business and go into production, you then have 8 years without corporate taxe, your clients do not have to withhold taxes when they pay your service, you can have accounts in foreign currency, you can purchase equipment for your business tax free, you can send money overseas, you have priority at immigration at any Thai airport (you can use the diplomat lane), etc...

It is a very serious advantage

oz

Thanks for the great info! I can definitely use this. I’m emailing with BOI already. Did you start the procedure in Thailand or from your home country?

Thanks again for the replies guys! they help me a lot. J

Best,

[eskatonia]

Yes, if you are in SW or Multimedia, you can get BOI immediately.

I processed my application directly with the BOI and got approval in a few months. The fact was that as soon as I submitted my application, I got a visa and a document that allowed me to work for my company immediately.

When did you do this? As mentioned mine was last year and the entire process changed Jan 2015, its got a lot tighter, takes more time and harder to do. If you want to go for 100 percent foreign owned as far as I know, you need the BOI certificate first. You can't apply for a foreign business license until you have that, and legally you can't start trading without the foreign business license if you are 100 percent foreign owned.