The Board of Investment stipulates the following criteria for project approval:
- Development of competitiveness in the agricultural, industrial and services sectors
- The value added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, all of which must have value added of at least 10% of revenues.
- Modern production processes must be used.
- New machinery must be used. Used machines from other countries than Thailand is subject to conditions prescribed by BOI.
- The project with minimum capital investment (excluding cost of land and working capital) of ten million baht shall obtain a certificate from ISO 9000 or ISO 14000, or other standards of the same level within two years from the date of operation opening. If the operator cannot comply with this requirement, the one-year tax incentive shall be ceased.
- In regard to any business under a concession agreement or any business of state agency privatization. The committee will take the guideline in pursuance to the cabinet resolution dated 25 May 2541 and 30 November 2547.
- Environmental protection
- Adequate and efficient guidelines and measures to protect environmental quality and to reduce environmental impact must be installed. The Board will give special consideration to the location and pollution treatment of a project with potential environmental impact.
- Projects or activities with type and size that are required to submit environmental impact assessment reports must comply with the related environmental laws and regulations or Cabinet resolutions
- Projects located in Rayong must comply with the Office of the Board of Investment Announcement.
- Minimum capital investment and project feasibility
- The minimum capital investment requirement of each project is 1 million baht (excluding cost of land and working capital) unless specified otherwise on the list of activities eligible for investment promotion that is attached to this announcement.
As for knowledge-based services, the minimum capital investment requirement is based on the minimum annual salaries expense specified in the list of activities eligible for investment promotion.
- For newly established projects, the debt-to-equity ratio must not exceed 3 to 1. Expansion projects shall be considered on a case-by-case basis.
- For projects with investment value of over 750 million baht, (excluding cost of land and working capital), the project’s feasibility study must be submitted with details as specified by the Board.
Criteria for Foreign Shareholding
- For projects in activities under List One annexed to the Foreign Business Act, B.E. 2542, Thai nationals must hold shares totaling not less than 51% of the registered capital.
- For projects in activities under List Two and List Three annexed to the Foreign Business Act, B.E. 2542, there are no equity restrictions for foreign investors except as otherwise specified in other laws.
- The Board may set foreign shareholding limits for certain activities eligible for investment promotion as deemed appropriate.
Promoted projects would receive incentives such as exemption of corporate income-tax, exemption of import duties on machinery, exemption of import duties on raw materials, permission to bring foreign nationals and their family into the Kingdom or/and other incentives as announced by the BOI.
Roles of MVP as a representative and consultancy in relation to the application of project
If you are interested in starting this business, MVP team who is experienced in this matter is ready to provide you with full service as follows:
- Act as a representative and consultant in relation to the project drafting and the presentation to the Board of Investment for project approval;
- Tax planning in accordance with the investment policy prescribed by the Board of Investment for the best interest of an investor;
- Consultancy in relation to the application of incentives such as the exemption of machinery and raw material duties;
- Consultancy in relation to the project operation within three years as well as the renewal of all incentives.
Government agency involved
Board of Investment
For further information