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BOI Promotion vs FBA License: Which Do You Need?
Comparing Thailand's Board of Investment (BOI) promotion with Foreign Business Act (FBA) licensing for foreign-owned businesses.
Overview
Foreign businesses wanting to operate in restricted sectors in Thailand can either apply for BOI investment promotion or obtain an FBA license. BOI promotion offers significant incentives but requires qualifying business activities and investment commitments. An FBA license allows operation in List 3 activities but without the tax benefits of BOI.
Side-by-Side Comparison
| Aspect | BOI Promotion | FBA License |
|---|---|---|
| Foreign ownership | 100% foreign ownership allowed | 100% foreign ownership allowed |
| Eligible activities | Specific promoted activities (technology, manufacturing, etc.) | List 3 business services and activities |
| Tax incentives | 3–8 year corporate tax exemption, import duty exemption | No tax incentives |
| Minimum investment | THB 1 million+ (varies by activity) | THB 3 million minimum capital |
| Work permit facilitation | Fast-track work permits (2–3 days) | Standard work permit process (7–14 days) |
| Land ownership | Can own land for promoted business | Cannot own land |
| Processing time | 60–90 days | 60–90 days |
| Reporting requirements | Annual performance reports to BOI | Standard annual compliance |
| Transfer restrictions | Conditions on share transfers during promotion period | No transfer restrictions |
| Revocation risk | Can be revoked if conditions not met | Stable once granted |
Best For
BOI Promotion
- Technology and innovation companies
- Manufacturing operations
- Businesses wanting tax holidays
- Need to own land in Thailand
- Want expedited work permits
FBA License
- Service businesses (consulting, trading)
- Activities not on BOI promoted list
- Simpler compliance preferred
- No minimum investment capacity
- Short-term business operations
Verdict
BOI promotion is strongly recommended for qualifying businesses due to its generous tax incentives, fast-track work permits, and land ownership rights. An FBA license is the alternative for businesses in List 3 activities that don't qualify for or need BOI benefits.
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