Starry Research | "BOI Series"
Issue 3: The Application Process for BOI
When it comes
to investing and setting up operations in Thailand, the topic of
"BOI" is almost always unavoidable. However, most people do not have
an accurate understanding of what BOI actually is, and there are quite a few
misconceptions about it. Starry will publish a series of articles on
"BOI" to provide a detailed introduction to all aspects of BOI and
help more businesses understand it.
In the first
two issues, we introduced what BOI is, the incentives offered by BOI, the
contents of an Investment Promotion Certificate, as well as the conditions and
criteria for applying for investment promotion from BOI. In this issue, we will
introduce readers to the BOI application process.
1. BOI Application Process
|
No. |
Step |
Process Description |
|
1 |
Pre-Application Preparation |
Pre-Application Preparation l Confirm
whether the project/activity is eligible for investment promotion. Refer to the Investment Promotion Guidelines issued
by BOI. l Confirm
the identity of the applicant. The applicant may submit the application on behalf
of a company, or apply in their personal capacity. Applying for investment
promotion as a natural person refers to a situation where the company has not
yet been registered or is still in the process of incorporation at the time
of application. Such natural person must be an authorized signatory director
of the company to be incorporated. (After the investment promotion
application is approved, the applicant must complete the company
incorporation before applying for the issuance of the Investment Promotion
Certificate, and must comply with the shareholding structure, registered
capital, and Thai shareholding ratio requirements stipulated in the
investment promotion conditions.) l Prepare
the relevant materials and documents required by BOI. |
|
2 |
Submission of Application |
Investment promotion applications may only be
submitted online through the e-Investment Promotion system. |
|
3 |
Project Presentation |
When completing Form F PA PP 01–08, the applicant
may indicate in the designated field the preferred date for a project
presentation to the BOI office. BOI officers will contact the applicant or
company representative within 10 working days from the date of submission to
arrange the project presentation. |
|
4 |
Project Evaluation and Approval |
BOI officers will evaluate and approve the project.
The approval timeline depends on the investment amount: Projects with an investment not exceeding THB 200
million: approved by the Working Group within 40 working days after
submission of complete documents; Projects with an investment exceeding THB 200
million but not exceeding THB 2 billion: approved by the Sub-Committee within
60 working days after submission of complete documents; Projects with an investment exceeding THB 2
billion: after preliminary approval by the Sub-Committee, submitted to the
Committee for consideration; the entire process will be completed within 90
working days after submission of complete documents. |
|
5 |
Notification of Approval Results |
BOI will send the results to the applicant via the
electronic system within 7 days from the date the resolution is passed. |
|
6 |
Confirmation of Acceptance of Investment Promotion |
The company representative or investor must confirm
acceptance of the resolution (to confirm the approval results) within 1 month
from the date of receiving the notification of the approval results, by the
following methods: Submit the Promotion Acceptance Form through the
Investment Promotion Certificate system on the BOI website
(www.boi.go.th). Log in using the same
username and password as the e-Investment Promotion System. For applicants for investment promotion involving
business transfers, submit Form F GA CT 07 to the Investment Promotion
Certificate Division of the Board of Investment (Headquarters). |
|
7 |
Application for Investment Promotion Certificate |
The applicant or company representative must submit
the application form for the Investment Promotion Certificate within 6 months
from the date of submitting the Promotion Acceptance Form, by the following
methods: Submit the Applying for the Promotion Certificate
Form through the Investment Promotion Certificate system on the BOI website
(www.boi.go.th). Log in using the same username and password as the
e-Investment Promotion System. For applicants for investment promotion involving
business transfers, submit Form F GA CT 08 to the Investment Promotion
Certificate Division of the Board of Investment (Headquarters). |
|
8 |
Issuance of the Investment Promotion Certificate |
The Board of Investment Office will issue the
Investment Promotion Certificate within 10 working days upon receipt of the
complete application for the Investment Promotion Certificate and the
required supporting documents. |
2. Applying for Approval to "Commence
Operations" After Project Approval
(1) Time Requirements for "Commencement of
Operations"
Within 36
months from the date of issuance of the Investment Promotion Certificate by
BOI, the beneficiary (the holder of the Investment Promotion Certificate,
hereinafter the same) must obtain approval to commence operations and begin
operations. In general, the specific commencement date of operations will be
stated in the Investment Promotion Certificate.
If operations indeed
cannot be commenced within 36 months, the beneficiary may simultaneously apply
for an extension of both the commencement of operations period and the
machinery importation period. In such cases:
Extension
applications may be submitted a maximum of 3 times, with each extension period
not exceeding 1 year. If the beneficiary only needs to extend the commencement
of operations period, they may apply for 1 extension, with the extension period
not exceeding 1 year.
If the
beneficiary is still unable to commence operations as authorized upon the
expiry of the prescribed period, the Investment Promotion Certificate will be
revoked, and the beneficiary will be required to pay back taxes, fines, and bear
other related penalties.
It should be
noted that, according to BOI's definition, "commencement of
operations" refers to the beneficiary having completed all
preparations and investments as stipulated in the conditions of the Investment
Promotion Certificate, and does not refer to the beneficiary commencing the
production or sale of goods or services. Therefore, beneficiaries may commence
production, sales, and enjoy various incentives before obtaining approval to
commence operations. However, if approval to commence operations has not been
obtained upon the expiry of the prescribed commencement of operations period,
the Investment Promotion Certificate will be revoked, and the beneficiary will
be required to pay back the tax benefits enjoyed, as well as related fines and
surcharges.
(2) Conditions for Applying to Commence Operations
Projects
requesting approval to commence operations must have fully invested in the
production or service process in accordance with the promoted capacity.
Additionally, the project must be able to continuously maintain this production
or service capacity and comply with all approved important conditions.
A. General
Projects
，，：
In general
cases, a project applying to commence operations shall be assessed on the
following matters to determine whether all approved important conditions have
been complied with:
-
Status of machinery and
equipment
-
Payment of registered capital
and share subscription
-
Shareholding ratio
-
Types of products or services
and production capacity
-
Production or service process
-
Layout diagram of installed
machinery and equipment
-
Scale of investment or number
of employees
-
Location of factory or place of
businessLicenses issued by relevant government agencies, such as the Factory
Operating License (Form Ror Ngor. 4 / Gor Nor Or / Form Kor. 2) and the Foreign
Business License (Form T.7), etc.
-
Other conditions stipulated in
the Investment Promotion Certificate, for example: enterprises engaged in
electricity generation must obtain a license permitting connection to and
integration with the power grid, etc.
B. Projects
Subject to the Efficiency Enhancement Measures PolicyFor projects subject to the Efficiency Enhancement Measures Policy,
an application to commence operations shall be assessed on the following
matters to determine whether all approved important conditions have been
complied with:
-
Status of machinery and
equipment
-
Details of the efficiency
enhancement measures implemented
-
Layout diagram of machinery and
equipment planned under the efficiency enhancement measuresSummary of past tax
exemptions, and copies of Corporate Income Tax Returns (P.N.D. 50) from the
year of issuance of the Investment Promotion Certificate to the current year
Relevant evidence demonstrating performance
results based on various indicators
(3) Documents Required for Approval to Commence
Operations
|
No. |
Document Checklist |
|
|
Application Form for Approval to Commence
Operations (Form F PM OP 01) or Application Form for Approval to Commence
Operations under Efficiency Enhancement Measures (Form F PM OP 19), together
with production or service flow chart and layout diagram of installed
machinery and equipment. |
|
1 |
Copy of the latest shareholder list |
|
2 |
Copy of the latest annual financial statements |
|
3 |
Company certificate (affidavit) |
|
4 |
Copy of the factory operating license or other
necessary licenses issued by the relevant authorities |
|
5 |
For projects with a cap on tax reduction amounts,
as the total investment amount up to the commencement date of operations
(excluding land costs and working capital) is required to be aggregated, the
following additional documents must be submitted: Copy of Corporate Income Tax Return (P.N.D. 50) Asset account list Accompanying asset registration documents |
|
6 |
Submit the application form for commencement of
operations approval to the Investment Monitoring and Evaluation Division 1–2
of the Board of Investment Office of Thailand, or to the Investment and
Economic Service Center in Regions 1–7. |
