Which factories qualify for BOI promotion in Thailand 2025?

Factories eligible for BOI promotion must operate in priority sectors such as BCG industries (agriculture, food processing, bio-based products), advanced manufacturing (automotive, electronics, machinery), digital and creative sectors (IT, media, logistics), and supporting industries (minerals, chemicals, industrial services). Location in the Eastern Economic Corridor (EEC) or recognized industrial clusters may provide additional support. Foreign investors can hold up to 100% ownership in most eligible projects.

What are the minimum investment and documentation requirements for BOI factories?

Projects must have a registered capital of at least THB 1 million (excluding land and working capital). Essential prerequisites include official company registration under Thai law, submission of a feasible business plan and financial projections, and project-specific environmental impact assessments. Proper documentation and early compliance planning increase approval chances and prevent delays.

How do I navigate the BOI application and approval process for a factory?

To apply for BOI promotion, submit a detailed application and supporting documents to the Board of Investment. Be prepared for project presentations or interviews. Approval timelines are: up to 200 million THB – 40 working days, 200 million to 2 billion THB – 60 working days, over 2 billion THB – 90 working days. After approval, accept the promotion certificate within one month and complete required documentation within six months.

What licenses and permits are required for a BOI-promoted factory?

After BOI approval, factories must secure licenses under the Thai Factory Act, including the Ror. Ngor. 4 factory license. Environmental and safety compliance documentation, including EIAs if applicable, is required. Permissions from industrial estates or local authorities, especially in the EEC or special economic zones, are also needed. Preparing regulatory submissions alongside BOI approval can save time.

What tax and non-tax incentives do BOI factories receive?

BOI-promoted factories may receive up to 8 years of corporate income tax exemption or reduction, import duty exemptions on machinery and raw materials, and double deductions on electricity, water, and transportation. Incentives also include permission for 100% foreign ownership, streamlined work permits and visas, and in some cases, land ownership for factory operations. Ongoing compliance and milestone reporting are required to maintain benefits.

Do BOI factories in the EEC or special zones get extra incentives?

Yes. Factories in the Eastern Economic Corridor (EEC) or special zones enjoy enhanced tax and logistic incentives, particularly for export-driven projects. IEAT Free Zones offer duty-free imports, though eligibility and long-term benefits differ from BOI. Evaluating both BOI and special zone benefits helps maximize returns based on sector, investment size, and export focus.

What are the ongoing reporting and renewal obligations for BOI factories?

BOI factories must submit annual reports detailing performance, investment milestones, and operational updates. Milestone submissions, renewal of licenses, and immediate notification of company changes are required. Digital BOI portals help streamline compliance. Maintaining auditable records and timely filings ensures continued eligibility and uninterrupted access to incentives.

How can I avoid compliance risks and maintain BOI status?

Common risks include missed deadlines, misreporting, and failing to update BOI on material changes. To mitigate these risks, implement internal audit schedules, conduct annual third-party compliance checks, and maintain checklist-driven processes for reporting and renewals. Proactive compliance ensures uninterrupted incentives and protects your investment.

What mistakes commonly cause delays or penalties in BOI factory applications?

Delays often result from incomplete or inconsistent applications, overlooking sector-specific policies, and misreading permit obligations. Missing or misfiled documents can extend approval times or result in denial. Using a detailed checklist and preparing documents ahead of time reduces the risk of setbacks.

What lessons can be learned from successful BOI factory projects?

Successful projects typically engage local advisors early, meet environmental and compliance standards, and consider strategic locations such as the EEC. Using a project timeline, detailed checklist, and local expertise can accelerate approval and help avoid costly mistakes.

What happens if a BOI factory fails to meet performance targets?

Failure to meet targets may result in suspension or loss of benefits, along with additional compliance reviews. Annual reporting and milestone submissions are strictly enforced, and digital portals can help streamline compliance tracking.

Opening a Factory in Thailand with BOI Promotion

Opening a Factory in Thailand with BOI Promotion can unlock up to 8 years of corporate tax exemption and streamlined approval timelines as short as 40 days for qualifying investments.

If you are a business owner or investor seeking growth in Southeast Asia, understanding the legal steps for BOI promotion is more important than ever. Thailand’s 2025 policy update now prioritizes sectors like BCG industries, digital manufacturing and advanced logistics.

Opening BOI-promoted factory Thailand eligibility applications licenses incentives

Clear legal guidance ensures your application passes the strict eligibility filters applied by Thai regulators, avoids costly delays and allows 100% foreign ownership in most approved sectors.

With highly competitive incentives at stake, early preparation and precise compliance are essential to securing your BOI certificate and starting operations on schedule.

Key Takeaways

BOI promotion unlocks critical factory benefits including up to 100% foreign ownership, corporate tax exemptions up to 8 years, and land rights for eligible investors in priority sectors.
Minimum THB 1 million registered capital (excluding land and working capital) and comprehensive documentation are mandatory for a successful BOI application.
Efficient, step-by-step legal process requires early company registration, a clear business plan, and environmental compliance to avoid delays and increase approval speed.
Factory licenses and regulatory permits (such as Ror. Ngor. 4) must be secured after BOI approval, with parallel submission of compliance documents to keep projects on schedule.
Location in the EEC or special economic zones provides access to enhanced tax incentives, logistics support, and streamlined regulatory processes for export-driven factories.
Annual reporting and milestone compliance are strictly enforced, with BOI digital tools enabling timely submissions and reducing the risk of losing benefits.
Most common pitfalls include incomplete applications and overlooked sector policies; use a detailed risk checklist and engage local advisors to prevent costly delays.
Regular internal audits and digital compliance tracking help maintain BOI status and ensure continuous access to incentives and regulatory approvals.

BOI Eligibility for Factories in Thailand
Legal Steps to Establish a BOI Factory
Maximizing BOI Incentives & Tax Benefits
Post-Approval Compliance & Reporting
Common Mistakes When Opening a BOI Factory
FAQ: Opening a Factory with BOI Promotion
Conclusion

BOI Eligibility for Factories in Thailand

Which Factories Qualify for BOI Promotion in 2025?

To qualify for BOI promotion, factories must operate in sectors prioritized by Thailand’s development policy. These include:

BCG industries: agriculture, food processing, and bio-based products
Advanced manufacturing: automotive, electronics, and machinery
Digital and creative sectors: IT, media and logistics
Basic and supporting industries: minerals, chemicals, and industrial services

Location and policy also matter. Factories in the Eastern Economic Corridor (EEC) or recognized industrial clusters often receive additional support.

Foreign investors may hold up to 100% ownership. This provides broad access for international business owners seeking direct entry to the Thai market.

For a full outline of eligible activities and policy priorities, see Thailand Board of Investment – Activities Eligible for Promotion.

Minimum Investment, Compliance & Documentation

A project must have registered capital of at least THB 1 million (excluding land and working capital).

Key prerequisites before applying include:

Official company registration under Thai law
Submission of a feasible business plan and financial projections
Preparation of project-specific environmental impact assessments

Essential documentation helps prevent common setbacks during review. Early compliance planning can save months.

Thorough eligibility assessment and strong documentation dramatically increase the odds of a successful BOI application, offering investors a clear path to growth and competitive incentives.

Legal Steps to Establish a BOI Factory

Navigating the BOI Application & Approval

Starting the process for opening a factory in Thailand with BOI promotion begins with a precise workflow designed for clarity and efficiency. Applicants must:

Submit a detailed application and supporting documents to the Board of Investment (BOI)
Prepare for a project presentation or interview to clarify investment details
Undergo evaluation, after which decisions are made on the timeline below:
- Up to 200 million THB: 40 working days
- 200 million to 2 billion THB: 60 working days
- Above 2 billion THB: 90 working days

After approval notification, you have one month to accept, followed by 6 months to complete the promotion certificate documentation.

A proprietary checklist covering financial documentation, project feasibility, and compliance requirements can reduce delays. Thorough, organized submissions often lead to faster processing.

Securing Factory Licenses & Permits

Once BOI approval is secured, specific licenses under the Thai Factory Act and other regulations are required. Key considerations include:

Apply for a factory license, commonly known as Ror. Ngor. 4, via the local Industrial Works Office
Prepare environmental and safety compliance documentation, including EIA (Environmental Impact Assessment) reports for applicable projects
Obtain permissions from relevant industrial estates or local authorities, especially in special economic zones like the EEC

BOI approval timelines often overlap with license applications, making it possible to prepare regulatory submissions while awaiting BOI results.

Visualize mapping your regulatory steps on a project timeline: keeping application milestones, compliance checkpoints and permit submittals all tracked in one place.

Timely submission of accurate documents accelerates your journey from approval to operational status, helping your factory project stay on schedule.

Maximizing BOI Incentives & Tax Benefits

Tax & Non-Tax Incentives for BOI Factories

BOI promotion provides a suite of tax and non-tax benefits that directly reduce costs and simplify operations for factory investors.

Key incentives include:

Up to 8 years corporate income tax exemption or reduction (section-dependent)
Exemption or reduction of import duties on machinery and raw materials
Double deduction on expenses such as electricity, water supply, and transportation

Factories benefit from:

Permission for 100% foreign ownership in most eligible sectors
Ability to own land for factory operations (usually restricted in Thailand)
Streamlined work permit and visa processes for foreign employees

Incentives require ongoing compliance such as annual BOI reporting and meeting project milestones.

Location-Based Incentives: EEC & Special Zones

Factories located in the Eastern Economic Corridor (EEC) or special zones enjoy extra incentives.

Consider:

EEC locations offer enhanced tax and logistic incentives, designed for export-driven factories.
IEAT Free Zones provide a duty-free environment for imported materials but differ from BOI in eligibility and long-term benefits.

Evaluate both BOI and special zone benefits for your sector, investment size, and export focus to maximize your returns.

BOI incentives can transform your Thailand factory project into an internationally competitive site, provided compliance and eligibility requirements are met at every step.

Post-Approval Compliance & Reporting

Ongoing Reporting & Renewal Obligations

Ongoing compliance is a legal requirement after your factory receives BOI promotion in Thailand. Annual and event-driven reporting helps maintain BOI status and avoid risk of incentive loss.

Business owners must tightly manage:

Annual reports: Detailing performance, investment milestones, and operational updates
Milestone submissions: Reporting when targets or significant project phases are achieved
Renewal of key permits: Ensuring licenses, certificates, and factory registrations remain valid
Immediate updates: Notifying BOI about any changes in company structure, business activity, or contact information

Digital submission tools provided by BOI streamline compliance. Auditable documentation and timely filing are essential to demonstrate ongoing eligibility.

Avoiding Compliance Risks & Maintaining BOI Status

The most common compliance risks for BOI factories include missed deadlines, misreporting, and not updating BOI on material changes. Incomplete records or untimely renewals can result in benefit revocation or project suspension.

To maintain BOI status, adopt:

Internal audit schedules: Regularly review reporting and renewal deadlines
Third-party compliance checks: Engage legal professionals for annual audits
Checklist-driven processes: Use a documented compliance calendar to track all obligations

Periodic review of the Thai Ministry of Industry – Compliance Guidelines ensures your team stays up-to-date on legal changes impacting reporting.

Proactive compliance ensures uninterrupted access to BOI incentives. By combining digital reporting with dedicated oversight, you protect your investment and gain peace of mind.

Common Mistakes When Opening a BOI Factory

Mistakes That Cause Delays or Penalties

Avoiding unnecessary setbacks begins with accurate documentation and a clear understanding of local requirements.

Common causes of delay or rejection include:

Submitting incomplete or inconsistent applications to the BOI
Overlooking industry-specific sector policies set by Thai regulators
Misreading permit obligations at the national and provincial level

Missing or misfiled documents can extend approval by weeks or even result in denial. Establish a risk checklist to catch missing items early: successful applications are typically submitted with a proprietary timeline that anticipates interview and review periods of 40 to 90 working days based on investment size.

Lessons from Successful BOI Factories

Recent case studies reveal patterns from both successful and unsuccessful applications:

Projects denied approval often failed to meet Thai environmental or compliance standards
Foreign manufacturers who engaged local advisors early secured permits up to 30% faster
Applying within the Eastern Economic Corridor (EEC) region can unlock extra incentives and streamline reviews

Being proactive, using a detailed checklist, and consulting local experts are proven strategies to help you avoid these common and often costly pitfalls in the BOI factory application process.

FAQ: Opening a Factory with BOI Promotion

Opening a factory in Thailand with BOI promotion is a strategic process with specific timelines and conditions. Understanding the details helps reduce delays and maximize benefits.

How long does BOI approval take?

The typical approval process for BOI promotion takes:

Up to 200 million THB: 40 working days
Up to 2 billion THB: 60 working days
Over 2 billion THB: 90 working days

Can foreigners fully own a BOI-promoted factory?

100% foreign-owned companies are eligible for BOI incentives, including full ownership, streamlined visas and land rights

BOI incentives apply to both new factories and approved expansions, provided projects meet all BOI criteria

What happens if a BOI factory fails to meet targets?

Failure to meet BOI performance targets may result in suspension or loss of benefits, as well as additional compliance reviews by Thai authorities

Required annual reporting and project milestones are strictly enforced: digital portals can streamline this process

For full eligibility guidelines, visit Thailand Board of Investment.

Building BOI compliance into your operational calendar helps secure ongoing incentives and long-term success for your factory in Thailand.

Conclusion

Opening a factory in Thailand with BOI promotion positions your business for growth, resilience, and a strategic advantage in one of Southeast Asia’s most dynamic markets.

Secure your project’s success by setting clear timelines, establishing robust compliance routines, and leveraging localized expertise from the very start.

Contact us to navigate every legal and regulatory step from application to operations with clarity, precision, and full transparency. Themis Partner ensures your investment receives the tailored support needed to maximize every BOI incentive.