This is part 2 of the post to you step by step how to fill out Thailand BOI application for software (activity 5.7) or E-commerce (Activity 5.8). If you have not read part 1, click here: how to fill out Thailand BOI application part 1 of 7.
We start from section 2, which is about finances and investment plan. Remember all the figures will be in the unit of Thousands of Baht.
2.1 Finance: Here you fill out the registered and paid up capital of your Thailand BOI company that will be established. Or in case of an established company, you will find the bottom section that you will fill out how you will fund your new Thailand BOI project, how much from the company’s retained earnings, how much capital you will increase and how much will be your newly paid-in capital to fund the project under this BOI application.
Then you will fill out about loans. If your total investment is more than the funding from the above paragraph, you will need to say how much loan you will get domestically or overseas, or from your domestic or foreign suppliers of machinery (in the case of software and E-commerce, machinery means computers and software).
– Cost of construction or rent for a period of longer than 3 years: Most likely you do not own your own office. If you do, fill out the cost here, not including the value of land. If you don’t, you can fill the total rent of more than 3 years of which you sign a lease agreement with your landlord. However, note that most landlord will not sign a lease for more than 3 years, which needs to be registered with the Land Department.
– Cost of machinery or rent for a period of longer than 1 year: Here you will fill the cost of your computers and software necessary for your Thailand BOI project. If you lease any computers, photo copier, etc. make sure the agreement is more than one year.
– Cost of installation: If you will spend money on installing computers and stuff, put the value here.
– Cost of test-run: If you need to spend money on test-run of any machinery, just put it here.
– Preliminary expense: Here you fill out how much you will have paid before you have set up your Thailand BOI company.
– Value of other assets: This is the fixed assets that you need to buy that are necessary for your Thailand BOI company’s software business.
– Cost of land: If you own your office, then you may have cost of land to fill in here.
– Cost of expertise: If you need to hire some experts to help with the initial stage of your software or E-commerce business, then you can fill the amount of spending here.
– Working capital: This is the money you need for operating your business for the period until you generate income. For example, if you need a year to develop your software product and get paid from your clients, then you need to cover your expenses of one year with your working capital.
Tomorrow we will talk about section 3 and 4 of Thailand BOI Application for Software and E-commerce business in How to fill out Thailand BOI application Part 3 of 7.
Consult with Thai Lawyers Ltd. to help with your Thailand BOI company registration.