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Case Study: Successful BOI Application for Tech Startup
How a foreign tech startup successfully obtained BOI promotion in Thailand, securing tax incentives and the ability to hold majority foreign ownership.
This case study is based on anonymized real-world situations and is presented for educational purposes only.
The Situation
A Singaporean tech company wanted to establish a software development center in Bangkok. The company planned to invest THB 15 million and hire 25 Thai software engineers. They applied for BOI (Board of Investment) promotion under Activity 5.7 (Software Development) to benefit from corporate income tax exemptions, permission for majority foreign ownership, and streamlined work permits for foreign executives.
Legal Issues Involved
BOI promotion eligibility under Activity 5.7 (Software Development)
Foreign majority ownership exemption from Foreign Business Act
Corporate income tax exemption period and conditions
Work permit and visa facilitation through BOI
What Happened (Process)
- 1
Retained BOI specialist law firm to assess eligibility and prepare application
- 2
Application filed with BOI including business plan, investment projections, and technology descriptions
- 3
BOI conducted site visit and reviewed documentation (approximately 60 days)
- 4
BOI issued promotion certificate with conditions
- 5
Company incorporated as Thai limited company with 100% foreign ownership
- 6
Registered with Revenue Department for tax exemption
- 7
Applied for work permits and smart visas through BOI One-Start-One-Stop center
- 8
Commenced operations within 6 months of initial application
Outcome
The company received an 8-year corporate income tax exemption, permission for 100% foreign ownership (normally restricted to 49%), and expedited work permits for 5 foreign executives. Total setup cost including legal fees was approximately THB 1.2 million.
Key Lessons
BOI promotion is the most effective way for tech companies to operate with majority foreign ownership in Thailand.
Applications typically take 60-90 days. Planning ahead is essential.
The investment threshold and hiring requirements vary by activity category.
BOI companies still must comply with general Thai corporate law and employment regulations.
Working with a specialized BOI law firm significantly increases approval chances and reduces processing time.
Disclaimer: This case study is based on anonymized real-world situations and is presented for educational purposes only.
Professional Legal Assistance
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