Thailand has long attracted international investors with its strategic location, skilled labor force, and vibrant economy. But for many years, foreign business ownership in Thailand was burdened with complex restrictions, regulatory barriers, and limitations under the Foreign Business Act. That changed with the establishment of the Thailand Board of Investment (BOI), a government agency designed to facilitate and promote foreign investment. For entrepreneurs, SMEs, and large corporations alike, setting up a BOI company in Thailand has become one of the most strategic ways to establish a legal, fully functioning business in Thailand often with full foreign ownership.
This article will explore what defines a BOI company, how it differs from traditional company structures in Thailand, and why it’s a critical path for foreign investors looking to build, scale, and operate with confidence in Southeast Asia’s second-largest economy.
Understanding the BOI and Its Mission
The Thailand Board of Investment (BOI) is a government agency under the Office of the Prime Minister. Its mandate is to attract domestic and foreign investment into sectors deemed vital to Thailand’s long-term economic development. These include industries such as advanced manufacturing, biotechnology, digital innovation, clean energy, education, healthcare, and smart agriculture.
To support this mission, the BOI provides a powerful set of incentives to businesses it promotes, many of which directly address the common roadblocks foreign investors face, such as ownership restrictions, visa and work permit difficulties, and tax burdens. In short, the BOI has become a gateway for foreign investors to operate in Thailand without the limitations that traditionally apply to foreigners doing business in the country.
What Is a BOI Company?
A BOI company is a business entity in Thailand that has been granted investment promotion privileges by the Board of Investment. While its structure may appear similar to a standard Thai limited company on paper, in practice, a BOI-promoted company enjoys significantly more freedom, flexibility, and financial advantage than its non-BOI counterparts.
The core distinction lies in the approval process and the eligibility criteria. Not every business can apply to be a BOI-promoted company. Only businesses operating within specific promoted sectors, meeting certain performance and activity criteria and capital thresholds are eligible. Once approved, these companies are issued a BOI promotion certificate and can access a suite of privileges designed to fast-track growth, streamline operations, and reduce regulatory friction.
Why the BOI Route Matters for Foreign Investors
For foreign entrepreneurs and corporate investors, the BOI framework provides an unprecedented opportunity to legally and sustainably operate a business in Thailand without needing to rely on local nominees or face ownership restrictions. BOI registration is open to both Thai nationals and foreigners. One of its most significant advantages is that it permits 100% foreign ownership in many industries, eliminating the usual requirement for Thai majority shareholders.
Under Thailand’s Foreign Business Act, certain business activities are prohibited or restricted for foreign nationals unless they hold a Foreign Business License or are granted an exemption. The BOI promotion serves as one of the few official exemptions from the Foreign Business Act, allowing 100% foreign ownership even in sectors where it is typically prohibited.
This creates a major strategic advantage for foreign founders. Instead of navigating the risks and legal ambiguity of nominee structures (which are illegal but historically common), investors can establish full control of their enterprise within a compliant, government-supported framework.
Key Benefits of Registering a BOI Company
Once approved, BOI companies gain access to a wide range of incentives. These benefits are typically categorized into tax and non-tax privileges, and their scope depends on the specific activity and investment scale of the applicant. Some of the most impactful advantages include:
1. Full Foreign Ownership
Perhaps the most compelling benefit for foreign entrepreneurs is the ability to own 100% of the company, even in industries that are otherwise restricted under Thai law. This removes the need for Thai shareholder arrangements and grants full control of company direction, profit distribution, and equity structure.
2. Work Permits and Visas for Foreign Staff
BOI companies are exempt from the typical 4:1 ratio that requires four Thai employees for every one foreign employee. This makes it significantly easier to recruit international talent. The BOI also offers fast-track visa and work permit services through the One Stop Service Center, simplifying the relocation of foreign executives, technical experts, and their families.
3. Tax Incentives
Depending on the nature of the business and its alignment with promoted activities, BOI companies can enjoy up to 13 years of corporate income tax exemption. In addition, there are reductions or full exemptions on import duties for machinery and raw materials used in production, as well as double deductions for certain utility and transportation costs. For a full breakdown of tax and non-tax privileges, see our guide to BOI promotion in Thailand.
4. Land Ownership
Foreign companies typically cannot own land in Thailand. However, BOI companies may be granted permission to purchase land for business use—an exception that is especially valuable for manufacturing, logistics, or R&D companies that need to secure strategic assets.
5. Simplified Regulatory Access
BOI companies benefit from expedited government procedures and a centralized support structure. The One Start One Stop Investment Center (OSOS) allows companies to coordinate with multiple ministries and agencies through a single channel, streamlining everything from licensing to compliance reporting.
Types of Businesses Eligible for BOI Promotion
Not every industry and business activities qualifies for BOI promotion. The BOI maintains a clear list of promoted businesses which are updated regularly in alignment with Thailand’s economic goals. The promoted businesses are some of the business activities in the following sectors:
- Agricultural, Food & Biotechnology
- Medical Industry
- Machinery & Vehicles
- Electrical & Electronics
- Metals & Materials
- Chemicals, Petrochemicals & Plastics
- Public Utilities & Industrial Real Estate
- Digital Industry
- Light Industries
- High-Value Services
Additionally, certain service industries—including R&D, education, and software development—may qualify if the business demonstrates long-term strategic value to Thailand’s competitiveness.
It’s important to note that even within these sectors, BOI approval is not automatic. Each application must include a detailed business plan, feasibility assessment, and demonstrate potential for job creation, knowledge transfer, or technological advancement. Not sure if your activity qualifies? Read BOI eligibility in Thailand to see who can apply and what criteria you must meet.
The BOI Application Process
Registering a BOI company is more complex than incorporating a standard Thai limited company. It involves a multi-stage application and approval process, typically guided by legal and investment experts. The general steps include:
Feasibility Assessment: Evaluating if the proposed business activity qualifies for BOI promotion.
Pre-Screening and Consultation: Informal discussion with BOI officers to validate concept fit and compliance readiness.
Formal Application: Submission of business plan, financial projections, investment details, and technical documentation.
Interview with BOI Committee: For many projects, an in-person or virtual presentation is required to explain the project’s value and implementation strategy.
Approval and Terms Agreement: If approved, the company must accept the promotion conditions within 30 days.
Company Incorporation: The legal entity must be formally registered in Thailand within six months of BOI approval.
Post-Approval Compliance: Ongoing reports, updates, and inspections must be submitted to maintain BOI status and privileges.
While the process can take several months, working with experienced legal counsel or investment advisors can significantly reduce unnecessary delays and increase your chances of successful certification. For the step-by-step timeline, see our How to apply for BOI promotion guide
Long-Term Obligations and Compliance
Once a company is granted BOI promotion, it is required to maintain regular reporting and compliance with the conditions laid out in its certificate. This includes timelines for capital injection, project implementation, machinery importation, and employment targets. Failure to meet these requirements may result in revocation of privileges or penalties.
BOI companies must also adhere to strict accounting and auditing standards. In addition to standard filings with the Thai Revenue Department, BOI companies may face additional inspections or document requests, particularly if they are receiving tax exemptions or import duty waivers.
Is BOI Right for Your Business?
While the benefits are clear, the BOI route is not suitable for every type of business. Small operations with limited capital or businesses in non-promoted sectors may not meet the eligibility thresholds or find the lengthy application process worthwhile.
However, for businesses in targeted industries, or for foreign entrepreneurs seeking maximum legal ownership, flexibility, and operational efficiency in Thailand, the BOI route is one of the most effective legal structures available. It not only unlocks key privileges but signals credibility and long-term commitment to Thai regulators, investors, and partners.
Ready to Register a BOI Company in Thailand? SVBL Can Help
Navigating BOI approval is complex but you don’t have to do it alone. At Siam Visa & Business Law, we specialize in guiding international entrepreneurs and businesses through Thailand’s BOI application and registration process with clarity, confidence, and legal precision.
From feasibility assessments and document preparation to direct coordination with the BOI, our legal experts ensure your business meets every compliance requirement while maximizing the benefits you’re entitled to.
Whether you’re still exploring the idea or ready to take the first step, book a free consultation. We’ll help you assess eligibility, reduce risk, and make informed decisions about the most strategic setup for your business in Thailand.
Make your expansion into Thailand secure, strategic, and supported with SVBL.