Thailand BOI companies, apart from making sure they are in compliance with the conditions stipulated in the certificate issued by the Board of Investment have to submit a form to open their BOI operation within 3 years from the date of certificate issuance. In doing so, they have to be able to prove, for example, having an administrative expenses of 10 M per year, having 1.5 M of IT personnel cost per year, having invested 5 M, depending on the business and the condition set by the BOI in the certificate. When Thailand BOI companies have filed this form to open operation, the BOI will come to the company’s business location to inspect that everything has been in compliance. They will check that the production process is the same as what was included in the BOI application and that all the machinery and fixed assets are present at the company’s premises and the amount of investment is correct.
Here is what you have to prepare when you are ready to open your Thailand BOI operation officially.
Prepare the package to open operation, which includes a BOI form (direct translation: Open Operation Form), a list of machinery purchased for use in your BOI project giving details such as the price of machine, receipt number and the date of purchase and list of other fixed assets you acquired for the project. If your BOI condition is that you need in invest at least a certain amount, you will need to prove that you have invested in fixed assets that are necessary in operating your Thailand BOI project. If the condition is that you must spend 10 M in selling and administrative expenses, then you need to show the latest year’s audited financial statements which are the proof that you have spent that much.
For a BOI promoted manufacturing company, it needs to demonstrate the core production process of each product, the machines used in the production and its capacity.
Following are the documents needed to go with the package.
- Copy of Factory License and Company Registration Certificate
- Copy of list of shareholder and company affidavit issued by the Department of business development not more than 6 months ago
- Copy of the recent financial statements audited by a Thai auditor
- Copy of first invoice or bill of lading or airway bill that shows the first income of your Thailand BOI business.
- Production process flow chart
- A layout showing machinery location
Once your Thailand BOI project operation has been approved to open, the company still have to make sure it complies with the conditions set forth in the BOI certificate otherwise its BOI status can be revoked.