The Thailand Board of Investment (BOI) is the government agency that lets a foreigner own a Thai company outright, skip years of corporate income tax, and bring in foreign staff without the usual headaches. If you have been told you need a Thai partner to do business here, BOI promotion is the legal route around that.
Most people first hear about the BOI as a rumour: a friend of a friend set up a software company in Bangkok, owns 100% of it, and paid no corporate tax for years. The rumour is basically true. What gets lost is the detail, the conditions, and the paperwork behind it. This guide walks through what the BOI actually is, what promotion gets you, who qualifies, and what it costs, so you can judge whether it fits your business before you talk to anyone.
Key Takeaways
- The BOI is a Thai government agency that promotes investment by granting tax and non-tax privileges to approved projects.
- A BOI-promoted company can be 100% foreign-owned. You do not need a Thai partner or nominee shareholders.
- Corporate income tax can be exempt for up to 8 years, and up to 13 years for activities with advanced technology or innovation.
- Promotion also brings import-duty exemptions, the right to own land for the promoted activity, and far easier work permits and visas for foreign staff.
- The general minimum investment is THB1 million, excluding land and working capital.
- Promotion is granted project by project, so your exact privileges depend on your activity and how it is classified.
What the BOI Actually Is
The Board of Investment is not a company registrar and it is not the tax department. It is a promotion agency. Its job is to attract investment into activities Thailand wants more of, and its tool for doing that is a package of privileges it can grant to a specific project.
That last point matters. The BOI promotes on a project-by-project basis. You do not “become a BOI company” in the abstract. You apply to have a particular activity promoted, and the privileges attach to that activity. Run a promoted software business and an unpromoted side venture under the same company, and only the promoted one enjoys the tax holiday.
Why Foreign Owners Want BOI Promotion
The single biggest draw is full foreign ownership. Under the Foreign Business Act, most foreigners are capped at 49% of a standard Thai company. The BOI lifts that. A promoted project can be 100% foreign-owned, which is why so many foreign founders go this route instead of hunting for a trustworthy Thai majority partner.
The tax holiday comes next. The BOI can exempt corporate income tax for up to eight years, and up to 13 years for activities involving advanced technology or genuine innovation. The top tiers (the BOI calls them A1+ and A1) get the exemption with no cap on the amount. The middle tiers (A2 to A4) get it capped at 100% of the project’s investment. For context, the standard Thai corporate income tax rate is 20%, so a multi-year exemption is real money. Some activities also qualify for a further 50% reduction for up to five years after the full exemption ends.
Then there are the non-tax privileges, which foreign owners underrate until they need them:
- Import-duty exemptions on machinery, and on raw materials used in export production.
- Land ownership. A promoted company can own land for its promoted activity, something a normal foreign-majority company cannot do.
- Foreign staff. Promotion makes it far easier to bring in foreign experts and skilled workers, with work permits and visas handled through the BOI’s One Stop Service Center for Visa and Work Permit in Bangkok rather than the usual immigration queues.
Good to Know: The visa and work-permit facilitation is worth more than it sounds. Standard Thai companies face a ratio of four Thai employees per foreign work permit. BOI promotion relaxes that, which is the difference between hiring the person you want and hiring the person the quota allows.
Which Businesses Qualify
The BOI promotes hundreds of activities, grouped into categories with different levels of benefit. Broadly, the “A” groups get tax holidays and the “B” groups get the non-tax privileges without the full corporate tax exemption. The activities that qualify shift with government policy, but the recurring themes are clear:
- Technology and digital: software development, digital services, data centres, and similar high-value activities sit in the top tiers.
- Manufacturing and export: production, assembly, and export-oriented operations across many industries.
- Services and headquarters: regional headquarters, international business centres, trading (often called TISO), and a range of support services.
Because eligibility and the exact tier depend on your specific activity, the honest answer to “do I qualify” is that it needs checking against the current promotion list. Many foreign-owned businesses qualify without realising it, and a few that assume they will do not.
Costs and Minimum Capital
The general minimum investment for a promoted project is THB1 million, excluding the cost of land and working capital, unless a particular activity sets a different figure. That is the BOI’s requirement, not the total cost of setting up.
On top of that, budget for company registration, the professional fees of the firm preparing your application, and the ongoing cost of accounting and annual BOI reporting. Fees vary widely between firms, which is exactly why comparing them matters. There is no single official “BOI setup price”, so treat any flat quote as a starting point for questions, not a final answer.
The Application Process
The process runs in a set order, and skipping ahead is where people lose time:
- Prepare and file the application, including a business plan that shows the project meets the criteria for your activity.
- BOI review, sometimes with a presentation or clarification meeting. Larger projects take longer to review than small ones.
- Approval and the promotion certificate, which lists the privileges granted and the conditions attached.
- Company registration and setup to match the approved structure, followed by the steps to actually claim each privilege.
How long approval takes depends mainly on the size of your investment, and the clock starts once your documents are complete. Under the BOI’s published process, projects worth up to THB200 million get a decision within 40 working days, projects from THB200 million to THB2 billion within 60 working days, and larger projects within 90 working days.
A clean, complete application is what keeps you at the fast end of that range.
Keeping Your BOI Status
Promotion is not “approve once and forget”. It comes with conditions, and the privileges last only as long as you meet them.
You have to file regular reports with the BOI, keep the company’s activity in line with what was approved, and maintain the investment and structure the certificate is based on. Miss the reporting, or drift away from the promoted activity, and you risk losing the privileges you set the whole thing up for. This is the part foreign owners forget once the exciting setup phase is over, and it is the main reason to have a firm handle ongoing compliance rather than doing it yourself between other jobs.
BOI Versus the Alternatives
BOI promotion is not the only way a foreigner can operate here, but it is the cleanest for full ownership. The alternatives:
- A standard Thai limited company with a Thai majority. Cheaper and simpler, but you own 49% at most, and any arrangement to secretly control the Thai shares is illegal.
- The US-Thailand Treaty of Amity, which allows American citizens majority ownership in many sectors without BOI promotion. Useful, but only for Americans.
- Nominee shareholders, meaning Thai names holding shares they do not really own on your behalf. This is illegal under the Foreign Business Act, enforcement has tightened, and no reputable firm will arrange it. If someone offers, walk away.
Common Mistakes
- Assuming the tax holiday covers everything. It covers the promoted activity only. Income from anything else is taxed normally.
- Treating the minimum capital as the budget. THB1 million is the floor for eligibility, not what setup and a year of compliance will cost you.
- Underestimating the reporting. The privileges depend on ongoing conditions, and losing track of them is the quiet way people lose their BOI status.
- Shopping on price alone. A cheap application that gets rejected or a firm that vanishes after setup costs far more than a good one.
Not sure if your business qualifies?
Connect with a vetted firm for a free BOI eligibility assessment. If you do not qualify, we will tell you straight.
Get ConnectedFrequently Asked Questions
Do I need a Thai partner for a BOI company?
No. A BOI-promoted company can be 100% foreign-owned, which is the main reason foreigners use it.
How long does the tax exemption last?
Up to 8 years for most qualifying activities, and up to 13 years for activities with advanced technology or innovation. The exact term depends on how your activity is classified.
What is the minimum investment?
Generally THB1 million, excluding land and working capital, unless a specific activity sets a different amount.
Can a BOI company sponsor my visa and work permit?
Yes, and more easily than a standard company. The BOI runs a One Stop Service Center for visas and work permits, and promoted companies get a more generous foreign-staff allowance. Founders and skilled staff may also qualify for the Smart Visa or the Long-Term Resident (LTR) visa.
What happens if my business does not qualify?
You still have options, including a Treaty of Amity company for Americans or a standard structure, but none give a foreigner full ownership as cleanly as BOI promotion.