Questions about Thailand BOI companies for software developers

Q: I’m interested in Thai limited company registration with 100% foreign ownership. Also I need work permits and non-b visa for 5-10 foreign IT engineers. My Company is IT Software developer. I already have the same business in my country, but decide to make it global with headquarters in Phuket. Do I understand correctly that I need the approval of Thailand BOI for this purpose? Do you offer such a service? Does my business qualify under the criteria of BOI?

A: If your business is software and app development you can get BOI promotion so you can have 100% ownership of your Thai company. You will get approved for sure with our help. Also your company will be able to sponsor many work permits for your foreign employees. With Thailand BOI certificate you will not need 4 Thai employees for each work permit.

Q: I have read that companies approved by BOI are allowed to work without VAT, do you think my Thai BOI company needs to register VAT?

A: Whether you have BOI or not if your software will be used overseas you will not need to charge VAT. But for example if a company in Thailand hires your company to develop their software then you need to add the VAT on top of your service fee. Goods or services that are exported are subject to 0% VAT, the goods and services that are used in Thailand are subject to 7% VAT. So yes, your company needs to register VAT.

Q: Can I not register the company yet until the BOI approves my software project?

A: You need to register your company before the Board of Investment issues the BOI certificate to you. That’s the rule. When submitting the application for your software business, you do not need to have a company yet, but once they send you a letter informing you that your project has been approved, you have to register your Thai company within 6 months or sooner before they can issue the BOI certificate.

Consult with your Thailand BOI expert at Thai Lawyers Ltd. for the fastest result in setting up your new Thai company.