Condo rental

Is Making Money from my Condo Allowed?

The condominium is one of the best investment for any foreigner in Thailand. It’s the best the form of real estate that expats and foreign retirees can put their investment into, as according to the laws of Thailand. The 1979 condo Act of Thailand lays out the rules for foreign ownership of condo units in the country.

just in case that you do not consider, click here to refresh your information on what the law says approximately overseas condo ownership.

Condominiums can have outstanding Returns for You

As with every investment, your purchase of a condo unit can and need to give you excellent returns. it is able to feature more than just a place for you and your own family to stay in. let’s take, as an instance, which you’re a businessman who has to often go to Thailand each year on official matters. You stay 30 days at a time, and then you move back to your home country to manage your business there. What takes place when you are long gone and there’s no one living within the unit?

Some people absolutely buy their condominium units as a preparation for their eventual move to Thailand in the future. even though it is still years away, some people do purchase condos already in advance. They then just make use of the condo as a method to make some money to at least recoup some of their investment in the unit.

You, too, can try this. if you have purchased a apartment unit which you depart within the care of a neighborhood Thai that has your self assurance, you ought to begin thinking about the way you, and probable your caretaker, could make cash out of that. the answer: sublease the condo unit.

Because Thailand is such a lovely location, you may find your friends trying to go over to the country however they don’t have a place to stay. temporarily renting out your condominium unit to them is a good idea – you can work on cheap costs so that they’d want to pick staying at your condominium as opposed to going to a luxurious hotel and spend a whole lot of cash on astronomical accommodation prices. it’s far perfectly legal, because you are the proprietor of the condominium unit.

In the event that you are engaged in a long-term lease on the condo unit, but you aren’t staying there completely for now, you can negotiate a clause within the contract to allow for subleasing. that is the most effective way that you could legally rent out the condominium to your friends who are coming over to Thailand for a vacation. it would take a few negotiating and perhaps a few additional terms to your agreement, however it would absolutely be well worth the attempt for your part.

Real estate is certainly a tremendous investment everybody can make. With a condominium unit in Thailand, you’re establishing lots of doors of opportunities for yourself. It’s extra than just an area to call home in Thailand – it may also be a method to earn residual income.

If you need a Phuket Lawyer for cases like this or setting up business, handle property and real estate or even immigration cases, don’t hesitate to contact us! We will be glad to review your case and provide solutions!

Investing Phuket

Why Investing in Phuket is Good

Phuket Island is undeniably one of the world’s famous destination for travelers and expatriates alike who long for retirement or a quick vacation in Thailand. within the fourth area of 2012 on my own, the real estate market in Phuket Island had the sale of a total of 2,789 units to foreign buyersit has been discovered to be gradually moving up for in years on years, making the island an addition to the list of prime alternatives for the overseas investor.

However what does is it that makes overseas investors come flocking over to this extraordinary island in Thailand? well, there are three reasons behind for it – the lovely beachesthe numerous activities you can enjoy while staying in Phuket, and the distinctly inexpensive price of living inside the island.

How costly is it staying in Phuket?

Common price range of living in Phuket is quite low cost, as we’ve noted in advance. A  single meal in an cheaper restaurant for one individual costs less than of THB100 which costs only roughly$2.  A person can fulfill his hunger on a budget not less than $10 for a day! Adding in fuel prices are also low here, with an average price of $1 a liter. Although transportation can be a bit of an expense, there are cheaper option wherein you can rent a motorbike or car instead of paying for one way trips.

A place for relaxation and fun activities.

Phuket is a traveler’s hub, first and foremostit’s far best proper and even expected that there can be a number of activities for everyone who comes to the island. they are too numerous to be mentioned on this blog, so let’s just summarize the activitiesthere is a extensive variety of activities inside the island. you may cross on eco- tours and revel in nature on this side of the tropics. tourists can visit the beaches and interact in various water-based sports activities like sea kayaking, parasailing surfing and others, or you could take a cruise onboard a luxury yacht. Unique attractions in are also in Phuket such as the Baan Teelanka or the “upside down house.” or even you can go on a temple hopping tour around the island.

If you may not like doing some tours and island hopping, Phuket is where you could discover many white sand beaches! The island has an area of only 540-square kilometers, so residents and expats don’t need to drive very far to be able to enjoy sandy beaches and some sun. The weather inside the island is likewise favorable, with rains anticipated only at some point of may until October – those months mark the monsoon rain season for the island. In all different months, people can expect by and large sunny days which are perfect for heading over to the beach.

If you may want to live in Phuket, foreign expats are allowing themselves the chance to enjoy all that the island has to offer since it just outside their doorstep. Contact our business lawyer now and find out what it takes to invest on a property and business in Phuket Island. that is possibly the best investment any expat can make within the country of Thailand.

If you need a Phuket Lawyer for cases like this or setting up business, handle property and real estate or even immigration cases, don’t hesitate to contact us! We will be glad to review your case and provide solutions!

Vat Thailand

Value Added Tax (VAT) in Thailand

Value Added Tax or VAT is an evaluation tax which applies to all wholesalers, manufacturers, producers, importers, shops and other entities offering direct services until exempted underneath the revenue Code. All corporations not included by the revenue Code exemption need to sign up and adopt the VAT system.

Following are distinctive as exempted from VAT.

  • Corporations with turnover not in excess of 1.8 million Baht in a year
  • The sale and import of raw agricultural products and related items
  • The sale and import of newspapers, magazines and textbooks
  • Health and academic services, domestic transport
  • Leasing of immovable property
  • Items exempt from import duty and destined for export-processing zones are covered in this category, along side research and technical services, labor contracts, auditing and legal services.

VAT standard rate and payment schedule

The present day VAT rate is 7%. VAT is payable on the 15th of the month following the month in which VAT is accrued. VAT will become payable on the 7th of the month following the month of the fee if self-assessment of VAT output is needed at the price of certain income to non-citizens.

Agencies that qualify for VAT exemptions ought to still pay VAT on products and services it purchases but isn’t entitled to a VAT refund. Such corporations are not required to gather VAT on its income or document month-to-month VAT forms. If the exempt organisation opts to do so voluntarily, it’ll be entitled to a VAT refund if registered for VAT functions.

Real estate Taxes

Residence and land tax and local development tax are levied via the municipalities on Thai properties. it’s far imposed annually at the proprietors of a residence, a building structure or land that is rented or used commercially. real estate tax fee is 12.5% of the actual or assessed annual property value of the assets. The local development tax is likewise an annual tax paid through the owner of the land or the individual in ownership of the land. The local development tax charge will depend upon the appraised cost of the property in line with the assessment of local government. The price ranges from 0.25% to 0.95%.

Taxes Imposed on Thai belongings

The following tax requirements should be considered when buying belongings in Thailand:

VAT of 7 percent paid each month
Land and residence Tax of 12.5% of the rental value of the property to be paid every year
Withholding Tax of 15% applicable to rents paid to nonresident individuals and foreign agencies without active commercial enterprise operations in Thailand
The need for Tax planning

The advantage of tax planning is that everybody gets to arrange their financial affairs so they may be aware about precisely how much they need to pay in taxes for properties they acquire, according to the provisions of the law.

An overseas investor who is making plans to buy a villa in a premiere development held in a Thai organization need to cautiously remember the tax consequences or tax exposures of the purchase. The same applies to property deals that require the proprietor to take a shareholding in a organization.

Company registration

Advantages and How To Setup Limited Company in Thailand

Thailand, like any other countries within the Southeast Asian region, encourages overseas investors to their country to enhance their economic activities. And unlike other countries within the area, Thailand happens to have the proper circumstances, conditions and enticements to lure foreign investment into the country. And for you to facilitate the influx of foreign companies to Thailand, several systems were set up from which foreign investors can pick after they want to set up a corporation inside the country.

Private limited company

One of the most often used legal entities in Thailand is the private limited company, which has the same features and functions as the limited liability company (LLC) in the country. In Thailand, a private limited company is used as a way to operate enterprise in accordance with the business and investment laws of Thailand. it’s far required that 51% of a organisation’s stocks have to be held through Thai nationals. The last 49% can be held by using anyone which include foreign investors.

Advantages of private limited corporation

The biggest benefit of establishing  a private limited company is the fact that legally, it is a stand-alone company under Thai law. And for foreign investors who need to govern the ownership of the corporation, the 49% limit can be exceeded or exempted, if the corporation is granted a foreign business License, which means the business have to be particular and need to not compete with neighborhood Thai businesses.

Setting Up

To set this type of business structure, at least three individual promoters (shareholders) is required, and at least one director is elected to manage the business or the organization. The business registration process includes:

• Reservation of name. this is done via filing a signed name Reservation form to the department of business development of the Ministry of commerce (MOC). The form need to include the preferred names along with the alternative names which may be taken into consideration if the primary names have already been used by different entities.

• Submit Memorandum of association or MOA. This should include the name of the company, the province where the company will function, scope of organization’s business, capital (including the number of shares and their par value) to be registered, and the names of all of the promoters.

• Calling of Statutory meeting. once the share structure is decided, a statutory meeting is called to facilitate:

• Adoption of Articles of association (by-laws). A Thai lawyer can help out in preparing the Articles of association.

• Ratification of any contract entered into which include expenses incurred with the aid of the promoters in promoting the organization

• Fixing the amount of remuneration, to be paid to the promoters

• Fixing the number of preferred stocks to be issued and the nature and volume of the preferential rights accruing to them

• Fixing the number of ordinary shares or preferred shares to be allotted as fully or partly paid-up

• Appointment of the initial directors and auditors and determining the respective powers of the directors

• Registration of company. inside three months from the date of the statutory meeting, the directors should publish the application to check in the company. Failure to register inside the specified period, the company statutory meeting shall be nullified and void. when this takes place, a meeting for persons who reserve will be arranged so they can buy the stocks again.

• Tax documents Registration. businesses that are liable for income tax need to register and obtain a tax identification card and number from the revenue department within 2 months of the incorporation date or at the start of the operations.

Workers rights

Workers Rights in Thailand

As in any country worldwide international, the government of Thailand has established terms and conditions protecting the interests of both the company and the employee. Thailand’s labor protection Act 2541 (1998) of the department of labor protection and Welfare defines the rights of employees and the responsibilities of employers. underneath the provisions of the Act 2541, all employers need to outline the terms of employment for their workforce. Employers with 10 or more regular personnel are required by way of law to specify working guidelines and policies – a copy of which must be submitted to the department of labor protection and Welfare and published at the work premises.

The following rights of personnel are defined in the labor protection Act 2541 which can be normally violated by employers:

Regular working hours

Employers that require their personnel to work for more than eight hours a day or exceeding forty eight hours per week are violating the terms beneath the labor protection Act 2541.

Breaks during regular work hours

Any employer that does not offer relaxation duration of not less than one hour a day after working 5 hours violates the provision concerning required rest period to be given by means of employers to their employees.

Weekly holidays

An organization violates the worker’s rights if he:

• Does not allow an worker to have at least one day off per week as a weekly holiday or the rest day is given after 7 days of continuous operation.

• Does not consist of the weekly holiday within the basic pay of the regular personnel.

National Holidays

Employers violate the provisions of the employee’s rights in the event that they don’t provide their personnel with thirteen national holidays including national labor day. If a holiday falls on a weekly holiday, the worker will be given a further holiday on the subsequent working day. The employers have to pay the personnel their fundamental pay on national holidays.

Annual leave

If an organization has an employee that has worked for one full year continuously, the worker is entitled to an annual vacation of not less than six working days. employees operating for less than 365 days could be entitled to an annual vacation on pro-rata basis. Failure to provide this can be in violation of the worker’s rights.

Basic Pay

An employee is entitled to get his basic pay not lower than minimum rate of basic pay as mandated by using the government. If employees are paid lower than minimum rate of basic pay, the employers are in violation of the basic pay rights of the employees.

Overtime Pay, Holiday Pay and Holiday Overtime Pay

An organization may also require an employee to work extra time or on holidays as necessary to the continuous overall performance of work but must be pay overtime rate. by law, employers may also require an employee to work on holiday if business is that of a hotel, theater, transport, restaurant, café, club, society, medical establishment or such other companies as prescribed by the Ministerial regulations with consent of the worker for each instance.

Employers that require employees to work beyond regular time on a working day and do not pay time beyond regulation at the rate of no longer less than one and a half times the rate of the hourly basic pay earned in normal working hours for the extra time hours worked, or no longer much less than one and half times the rate for each unit of output on a working day for employees who receive basic pay upon output. If the overtime coincides with a holiday, the corporation shall pay holiday overtime pay on vacations to the worker of not less than treble basic pay rate earned according to hour or per unit of output on a ordinary working day.

Company registration

Steps on How to Register Company in Thailand

Business entrepreneurs making plans to operate a business in Thailand should take time to get acquainted with Thai laws on registration of companies.

Businesses in Thailand are labeled underneath Thai laws as:

  • Sole proprietorship – this ismuch likesole business ownership structure within the America.
  •  Partnership – this is similar to a partnership corporation in other countries. There are two kinds of partnership: limited and ordinary.
  • Limited company – this is similar to the limited liability company (LLC) structure in the United States. Which is formed through dividing the capital into equal share. The shareholder’s legal responsibility is limited to the amount of stocks held by means of the shareholder. The most common business structure used in Thailand is the limited company. The following registration techniques are in accordance with what the Ministry of commerce has stipulated.

Step 1. Select Promoters (Shareholders). A private limited company requires a minimum of three promoters while a public limited company needs 15 promoters. Through a n assembly (required by law), the promoters will determine upon a listing of company names (at least 3 names) to test for availability.

Step 2. Publish the chosen company names for reservation. This process will take a look at if there are different companies that have used your proposed company name. If a name is accepted you may continue with the following step. otherwise, you may publish possible company names again till a call is cleared in your business.

Step 3. A statutory meeting with promoters as required by Thai law must be convened to:

• Approve a company name
• Decide official address
• Set up goals of the organization
• Set quantity of share capital to be registered and how it is divided
• Make a list of promoters’ names, addresses, occupations, and number of stocks each

Step 4. A “Memorandum of association” (MOA) containing the information in

Step 3. Must be filed with the district office protecting the official company address, within 30 days of approval of the company name. fees need to be paid: 50 baht per 100,000 baht of registered capital, minimum 500 baht and maximum 25,000 baht.

Step 5. Put together your company logo, create a company stamp with your logo.

Step 6. The agency registration application need to be submitted by way of the directors withinthree months after the MOA has been filed. the following should be part of the submission:• Cash payment for the registration fee (500 baht in line with 100,000 baht of registered capital, minimum 5,000 baht, maximum 250,000 baht)

• Completely filled out company documentation
• The company stamp

Step 7. You will get your company papers again after a day or two or after the MOC has completed the registration of your corporation.

Step 8. After your company registration certificates is issued, you need to go  to the revenue department to get a company tax identity card. A laminated card can be issued collectively with your company tax identification number.

Step 9. Go to the bank together with your identification card, company tax id card and company documentation and set up a bank account.

Step 10. You’re ready to operate your business.

Work permit Thailand

Procedures to Obtain Work Permit in Thailand

Without a work permit, foreigners are not allowed to work even if they have got different types of visa. the following procedures need to be followed in applying for a Thai work permit or visa:

The foreign worker should acquire a nonimmigrant visa or a resident visa before entering Thailand. this is required to be able to apply for a work permit. With a non-immigrant B visa, the overseas worker may begin to process the work permit. work permit application processing is carried out at the office of the Ministry of labor. the standard processing takes 7 business days, once in a while more. The overseas worker applying for a work permit need to have an available organization who will provide the files required for processing. The foreign employee need to also have a position or a job that is not prohibited to foreigners.

If the process applied for calls for a license under a particular regulation (e.g. instructor, physician, press card from the public relations department, etc.), similarly to the Alien occupation law, a photocopy of such license will be attached.
If the applicant is married to a Thai national, the authentic and photocopies of marriage certificates, spouse’s identification card, birth certificate of kids, household registration, in addition to photocopy of every page of the applicant’s passport should be provided.

Work permit, as soon as approved and granted should be carried by the foreign employee all of the time particularly at the place of work for presentation within the occasion of random immigration checks. The foreigner is only allowed to carry out the job stated inside the work permit and with the specific organisation.

The foreign worker desires to pick up his blue work permit book personally on the Ministry of labor office. work permit can be issued with validity starting from 90 days, 6 month or 12 months and this is at the discretion of the labor officer. it is also possible to have a visa (non-immigrant or resident) that expires on a completely different date to the work allow due to the new immigration regulations.

If you require some help in processing your immigration or work visa in Thailand, don’t hesitate to email or call HWAL legal in Phuket.

Files needed for a Work Permit Application:

Company Requirements

  • Employment agreement
  • Letter of employment stating position and salary of applicant
  • Office map
  • Photocopy of the director’s passport and work permit with signature affixed
  • Financial statement
  • Withholding tax of the company
  • Application for VAT
  • List of shareholders
  • Company certificates and objectives
  • The employer should provide the following:
  • Application form (W.P.2)
  • Three 5×6 cm. full-faced, bareheaded, black and white or color photographs, taken no more than six months prior to the filing of the application
  • A recent medical certificate from a first-class licensed physician in Thailand stating that the applicant is not of unsound mind and not suffering from contagious or infectious diseases, narcotic addiction or habitual alcoholism
  • Original passport
  • Letter of Employment
  • Certificate of Degree and CV or Resume showing application’s educational qualifications and describing in detail the applicant’s past position, duties, performance, and place and length of employment
Company registration

BOI Advantages, Protection and Guarantees

Thailand started to understand overseas investment as an important element in growing the countryís economic system inside the 1950s through enacting its first investment promotion legislation in 1954 via the industrial promotion Act No 19. but, the shortage of an administrative agency limited this Actís effectiveness.

The Industrial Promotion Act B.E. 2503 (1960) created the Board of Investment addresses the issue at hand. The Industrial Promotion Act B.E. 2505 (1962) and the National Executive Council Announcement No. 227 B.E. 2515 (1972) followed. These laws contained similar provisions for the administration and granting of incentives for both foreign and domestic investment

The Board of Investment is mandated by the government to grant the following incentives, guarantees and protection governed under The Investment Promotion Act B.E. 2520 (1977).

Incentives

Tax Incentives. The Act stipulates that promoted investments are entitled to acquire numerous types of tax exemptions. Promoted investments are exempted from corporate income tax on net profits for a period of three to eight years.

Exemption from charge of import duties on machinery may be granted by way of the BOI provided comparable machinery isn’t being produced locally.
If not fulfilling the above condition, BOI may additionally supply 50% reduction on equipment import duties instead.
BOI may offer reductions on import obligations of as much as 90% on imported raw substances which aren’t available locally.
Exemption from corporate income tax identical to the amount of investment no longer including the cost of land and operating capital for up to 8 years.
Exemption on a juristic personís income tax and dividends derived from promoted activities
50% discount of the juristic personís income tax
Double deductions from the price of transportation, energy and water supply
extra 25% deduction of value of set up or construction of facilities
Exemption of import duty on raw or critical materials for use in manufacturing for export
Non-Tax Incentives

On top of the tax incentives, the BOI offers non-tax incentives to a promoted organisation regardless of location which include:

Bringing in foreign nationals to engage in investment feasibility studies
Bringing in overseas technicians and specialists to work on promoted projects
proudly owning land to undertake the promoted activities
Remitting foreign currencies

Guarantees

The Board of Investment provides guarantees against:

Nationalization of the activity of the promoted person
Competition from state enterprise
State monopolization of products similar to products produced by the promoted project
Price controls on the products of the promoted activities
Tax exempt imports by state enterprises
Granting of permission to export at all times
Protection

Protection measures include:

Imposition of a surcharge on imports at a rate not more than 50% of the price of overseas insurance and freight charges for a period of not exceeding one year.
Import bans on competing products to provide additional protection for the promoted project or activity.
Authority of the BOI Chairman to order any action or tax relief sanctions to benefit the promoted projects especially in cases where problems or obstacles in the course of carrying out the promoted project are encountered.

If you need a Phuket Lawyer for cases like this or setting up business, handle property and real estate or even immigration cases, don’t hesitate to contact us! We will be glad to review your case and provide solutions!

List of Payments in When Setting up Business in Phuket

The most common question many investors have is whether it’s far costly to do business in Thailand, in Phuket more especially. the answer to this query varies. it’s going to rely on a lot of factors like type of business, size of properties workplace, labor fees, and many others. overall, if to be in comparison with other nations, doing business in Phuket Thailand may nonetheless show to be cheaper.

The Board of investment of Thailand has provided a breakdown of all anticipated expenses like charges, capitalization, and so forth. entailed by using registration of a business or employer in Thailand. The figures will give you an concept more or much less of how an awful lot funds you want to prepare and have if you plan to function a enterprise in Thailand.

The charges of you need to start and operate a business in Thailand include:

GOVERNMENT FEES FOR VISAS
Work permit for 3 months
Work permit for 6 months
Work permit for 1 year
Work permit for 2 years
One-year visa
Re-entry visa (single/multiple)

VISA PROCESSING FEES (LAW FIRMS)
Work permit (New)
Visa extension
Re-entry visa

GOVERNMENT FEES FOR COMPANY REGISTRATION
Company registration
List 2 Alien business license
List 3 Alien business license
Factory license

ACCOUNTING RATE
Tax returns and VAT
Legal registration per page
Review / draft contracts, agreements

Other related variable prices. those charges will range in line with type and location of business:

Office rental
Construction costs
Translation prices
Paid-up capital
Putting in of financial institution bills
Communication and software putting in fees
Coverage for commercial enterprise and humans

It’s far important to keep in mind that the funding prices range in line with the business sector or category your business could be classified under. investment into a restaurant can be some thing between 500,000 to 30,000,000 THB at the same time as investment into a hotel may be anything among 5,000,000 THB up to xxx billions THB.

Labor prices may also rely upon the qualification required by the position but typically, price of labor in Phuket Thailand is within acceptable and affordable range. BOI survey confirmed that median cost of exertions according to month could be among 100,000 THB for a managing Director, 75,000 THB for a financial Controller, 55,000 for managers, 27,000 THB for an executive secretary, 18,000 THB for an accountant or an engineer, 15,000 THB for sales personnel, 10,000 THB for office Clerk and among 10,000 to 8,000 THB for professional labor

Despite the fact that most of the predicted costs were identified and priced, there are always unexpected expenses which investors ought to be organized for. some of such unexpected expenses might be penalty for expired work permits or visa, injuries all through production, and many others. This listing must by some means help make an estimate of the initial funding required for doing a commercial enterprise in Phuket Thailand.

If you need a Phuket Lawyer for cases like this or setting up business, handle property and real estate or even immigration cases, don’t hesitate to contact us! We will be glad to review your case and provide solutions!

Boi Thailand

Foreign Business Approvals from BOI

Thailand gives all the factors a foreign investor would look for ñ inexpensive and hardworking personnel, an emerging bullish economy, a burgeoning domestic marketplace and a supportive government in terms of economic liberalization and growth.

The driving force in the back of Thailandís extraordinary economic growth is overseas investment with the government supporting and inspiring foreign traders from Japan, Singapore, Europe, usa, Hong Kong and Taiwan. Japan is currently the biggest stakeholder in overseas funding in Thailand. And at the same time as the country offers drastically favorable conditions to entice foreign traders inside the country, the major setback is the countryís policy on majority foreign possession that is constrained to 49%, giving away the majority possession of 51% to nearby Thai nationals. additionally, foreigners want to have Board of investment (BOI) promoting for his or her business activities in Thailand.

Regardless of the restrictions, a lot of overseas investors have shown interest in operating business in Thailand, endorsed by the countryís promise of an amazing business placing that will be useful to both the investors and Thailandís economy. And with overseas investment coming in, foreign investors want to have preliminary consultations with either an accounting company or law firm in Phuket to apprehend the situations, guidelines, rules and laws, surrounding the formation of a company in Thailand. investors need to get familiar with positive BOI rules covering their privileges if satisfying the standards for BOI promotional activities. company registration Phuket style might also sound easy, but in reality has loads of documentation compliance.

The BOI is mandated by way of the government because the most important government agency for encouraging investment. they are tasked with devising and implementing techniques under which promotional activities are organized. The approval of foreign business activities in Thailand comes from the BOI. They, collectively with the Ministry of commerce are tasked to offer the approval for foreign investment applications under the BOI promotional activities.

Additionally, the BOI has the power, exercised on a case through case basis, to supply financial and other promotional incentives to Thai registered companies that may consist of the following rights: majority foreign possession; possession of land and homes; exemption from import duty on imported raw materials and machinery used inside the promoted business; and exemption from corporate income tax for up to eight years.

BOI criteria for undertaking Approval

For projects with funding capital no longer exceeding Baht 500 million (except the cost of land and running capital), the subsequent standards are used:

The fee brought is not less than 20% of income revenue, besides tasks that manufacture electronic products and parts or processed agricultural produce, and projects granted unique approval by the Board.
Ratio of liabilities to registered capital have to now not exceed 3 to 1 for a newly set up project. growth projects are considered on a case by means of case basis.
A promoted project will be required to use current machinery and production strategies. In cases in which old equipment may be used, its efficiency should be licensed through reliable institutions and should attain the Board approval; adequate environmental protection systems are installed.
For projects with investment capital (except for the cost of land and running capital) over Baht 500 million, a feasibility study for the project, as prescribed with the aid of the Board, must be submitted.
As long as the foreign investors follow the standards, rules and rules set out through the BOI pertinent to ownership requirement, monetary requirement, etc., and as long as the promotional activities are deemed sound and financially benefiting the country and its economy, BOI approval can be granted truly.