The Thailand Board of Investment (BOI) offers the most significant legal pathway for foreigners to own and operate businesses in Thailand without the risks of nominee structures. BOI-promoted companies can be 100% foreign-owned, exempt from Foreign Business Act restrictions, and receive substantial tax benefits including up to 13 years of corporate income tax exemption.
Unlike illegal nominee arrangements that carry criminal penalties, BOI promotion is a government-sanctioned program designed to attract foreign investment in priority sectors. This guide explains what BOI promotion is, which activities qualify, the benefits available, and how the application process works.
What Is BOI Promotion?
The Thailand Board of Investment is a government agency under the Office of the Prime Minister established by the Investment Promotion Act B.E. 2520 (1977). BOI promotion grants certified businesses a package of tax incentives, regulatory exemptions, and operational privileges designed to encourage investment in targeted industries.
Key Benefits at a Glance
- 100% foreign ownership - No Thai shareholders required for promoted activities
- Up to 13 years corporate income tax exemption - For highest-priority sectors
- Import duty exemptions - On machinery, raw materials, and equipment
- Work permit facilitation - Streamlined visa processing for foreign staff
- Land ownership rights - BOI companies may own land for approved projects
- Foreign currency flexibility - Relaxed foreign exchange regulations
Legal Basis: How BOI Bypasses FBA Restrictions
The Foreign Business Act (FBA) B.E. 2542 (1999) typically restricts foreign ownership to 49.99% for most business activities. However, Section 8 of the FBA provides an explicit exemption for BOI-promoted companies.
This is not a loophole or gray area - it is a statutory exemption. When BOI grants promotion with foreign ownership rights, the company operates legally outside FBA restrictions for its promoted activities.
Eligible Business Activities
BOI promotion is available for specific business activities that Thailand considers priority sectors. These are organized into eight main clusters:
1. Agriculture & Food Processing
Modern agricultural practices, biotechnology, food processing, vertical farming
High Priority2. Minerals, Metals & Ceramics
Mining, metal processing, ceramics, sustainable practices
Promoted3. Machinery & Manufacturing
Automotive parts, aerospace, robotics, precision engineering
High Priority4. Electronics & Electrical
Semiconductors, renewable energy components, IoT devices, 5G
Top Priority5. Chemicals & Plastics
Petrochemicals, environmentally friendly materials, biodegradable plastics
Promoted6. Digital & Technology
Software, cloud computing, data centers, fintech, cybersecurity, AI
Top Priority7. Public Utilities & Services
Logistics, medical services, renewable energy, education
High Priority8. Special Economic Zones
Enhanced incentives in designated development areas
Enhanced Benefits2025 Priority Sectors
The BOI has identified the following as highest-priority sectors for 2025, offering the most generous incentive packages:
- BCG (Bio-Circular-Green Economy) - Sustainable and environmental industries
- xEV (Electric Vehicles) - Assembly, battery packs, smart drivetrains, charging infrastructure
- Semiconductors and Advanced Electronics - Wafer fabrication, IC design, testing
- Digital/Data Centers - Cloud services, data hosting
- International Business Centers - Regional headquarters operations
Activities No Longer Promoted
Some activities have been removed from the promoted list due to market oversupply or trade concerns:
- Solar cells and panels
- Lead-acid batteries
- Nonessential decorative items
- Long steel products and hot-rolled steel
- Steel pipes
Tax Incentives by Category
BOI incentives are structured in tiers based on the priority level of the activity:
| Category | CIT Exemption | Cap on Exempted Profits | Focus |
|---|---|---|---|
| A1+ | 10-13 years | No cap | Frontier/targeted technologies |
| A1 | 8 years | No cap | High-priority activities |
| A2 | 8 years | Capped at 100% of investment | Advanced technology infrastructure |
| A3 | 5 years | Capped | Broad manufacturing and services |
| A4 | 3 years | Capped | Standard industrial activities |
| B1/B2 | None | N/A | Import duty exemption on machinery only |
Additional Tax Benefits
- 50% CIT reduction for an additional 5 years after exemption period (A1 and A2 categories)
- Import duty exemptions on machinery, raw materials, and equipment for production
- Double deduction of transportation, electricity, and water costs for 10 years
- 25% deduction of infrastructure installation/construction costs
Non-Tax Benefits
Foreign Ownership Rights
BOI-promoted companies may be 100% foreign-owned for their approved activities. This right:
- Must be expressly granted in the BOI approval letter
- Overrides the FBA restriction of 49% foreign ownership
- Applies only to the specific approved activity scope
- Requires maintaining alignment with promoted business activities
Work Permit and Visa Facilitation
- Streamlined processing through BOI One-Stop Service Center
- Exemption from 4:1 Thai-to-foreign employee ratio
- Expedited Non-B and Non-OA visas for foreign experts and families
- No work permit required for certain executive positions
Land Ownership Rights
BOI-promoted companies may own land for their approved projects, subject to:
- Minimum THB 50 million paid-up capital requirement
- Up to 5 rai (8,000 sqm) for office space
- Up to 20 rai (32,000 sqm) for employee housing
- Land must be used for intended business purposes
December 2024 Land Ownership Update
New rules effective December 9, 2024 restrict land ownership for certain sectors. Metal, chemical, and plastic forming companies are no longer eligible for BOI land ownership rights.
Application Process Overview
The BOI application process is structured and generally takes 3-4 months for approval:
Step 1: Online Application
Submit application through www.boi.go.th E-Services portal. Create account, complete forms, upload required documents.
Step 2: Presentation/Interview
Schedule meeting with BOI case officer within 10 business days. Present project and answer questions (~1 hour).
Step 3: Evaluation Period
Processing time varies by investment value: 40-90 working days depending on project size.
Step 4: Approval Notification
Result notification within 7 business days after resolution.
Step 5: Post-Approval Implementation
Register Thai company (6 months), transfer investment (4 months), import machinery (30 months), complete construction (36 months).
Evaluation Timeline by Investment Value
| Investment Value | Evaluation Period |
|---|---|
| Up to THB 200 million | 40 working days |
| THB 200 million - 2 billion | 60 working days |
| Over THB 2 billion | 90 working days |
Minimum Investment Requirements
| Requirement Type | Minimum Amount |
|---|---|
| Standard BOI projects | THB 1 million (excluding land and working capital) |
| Land ownership eligibility | THB 50 million paid-up capital |
| Large-scale additional benefits | THB 5 billion combined investment |
| Digital Technology (Category 8.1) | THB 1.5 million/year in IT personnel salaries |
Value-Added Requirements
- Most projects: 20% of revenues must be value-added in Thailand
- Agriculture and electronics: 10% minimum value-added
BOI vs. Treaty of Amity: Comparison
For US citizens, both BOI promotion and the Treaty of Amity offer paths to foreign ownership. Here is how they compare:
| Factor | BOI Promotion | Treaty of Amity |
|---|---|---|
| Eligibility | Any nationality | US citizens/US majority companies only |
| Foreign Ownership | 100% for promoted activities | 100% for most activities |
| Tax Benefits | Up to 13 years CIT exemption, import duties | No special tax benefits |
| Activity Restrictions | Only promoted activities qualify | Most activities (except land, banking, some professions) |
| Application Process | 3-4 months, extensive documentation | Simpler, faster process |
| Minimum Investment | THB 1 million+ depending on activity | THB 2 million registered capital |
| Land Ownership | Possible with THB 50M capital | Not available |
| Work Permit Facilitation | Streamlined, exemptions available | Standard process |
When to Choose BOI Over Treaty of Amity
BOI promotion is preferable when:
- Your business activity qualifies for BOI promotion
- Tax benefits are important to your business case
- You want land ownership rights
- You need streamlined work permit processing
- You are not a US citizen (Treaty of Amity not available)
Common Rejection Reasons
BOI applications are not automatically approved. Common reasons for rejection include:
- Business activity mismatch: Applying for activities not on the promoted list or attempting to fit unsuitable business into categories
- Documentation errors: Missing documents, incorrect information, inadequate translations
- Value-added deficiency: Projects failing to meet minimum value-added thresholds
- Insufficient local content: Not meeting Thai content requirements for manufacturing
- Weak market analysis: Inadequate demonstration of market viability
The Bottom Line
BOI promotion represents the primary legal pathway for foreigners seeking 100% ownership of Thai businesses in priority sectors. Unlike nominee structures that carry criminal penalties, BOI promotion is a government-sanctioned program with substantial benefits.
Key considerations:
- Your business activity must qualify for BOI promotion
- The application process requires thorough preparation and documentation
- Benefits are significant: tax exemptions, foreign ownership, work permit facilitation, potential land ownership
- Ongoing compliance requirements apply after approval
- Professional assistance is recommended for application preparation
For businesses that do not qualify for BOI promotion, other legal alternatives include the Treaty of Amity (US citizens only), Foreign Business License application, or genuine joint ventures with Thai partners.