Foreign Investors Opening a Factory in Thailand: What You Need to Prepare

Why Foreign Investors Should Apply for BOI Promotion First

Under the Foreign Business Act B.E. 2542 (1999), a company with 50% or more foreign shareholding operating in a restricted business category needs approval from the Department of Business Development before it can legally operate. BOI promotion exempts qualifying businesses from this restriction, alongside tax benefits and easier visa and work permit processing.

That said, BOI doesn't promote every type of business. General retail or restaurant businesses typically don't qualify, unless the business model clearly involves technology, innovation, or a defined plan to expand internationally.

What the OSOS Center Helps With

Companies that receive BOI promotion can use the One Start One Stop Investment Center (OSOS) to process visas and work permits for foreign staff more efficiently. In some cases, approvals are granted for as long as 2 to 4 years, instead of the annual renewal required for ordinary companies.

The Main Steps to Opening a Factory as a Foreign Investor

• Register a company in Thailand
• Apply for BOI investment promotion
• Secure land or a factory site and obtain the land use permit
• Apply for a factory operating license appropriate to your business type and scale
• Use your BOI privileges to import machinery and raw materials for production
• Process visas and work permits for foreign staff through OSOS

Common Mistakes Foreign Investors Make

Many investors start importing machinery or raw materials before BOI has approved their itemized list, which forfeits the tax exemption they'd otherwise be entitled to. Others fail to confirm whether their chosen land is zoned for the type of factory they plan to build. Every step should be verified before you commit real investment.

Tip: Plan your machinery and raw material import logistics in parallel with your BOI application and factory licensing — not after everything else is finalized. Waiting until every permit is fully in hand before starting logistics planning often delays the project more than necessary.

Frequently Asked Questions About Opening a Factory as a Foreign Investor

Do I need BOI promotion before registering my company?

There's no strict order required, but it's most common to register a company in Thailand first, then apply for BOI promotion under that registered entity.

Does every type of business qualify for BOI promotion?

No. BOI only promotes business activities that meet the criteria in its published list of eligible categories. Check whether your business qualifies before starting the process.

Once I have BOI promotion, how long until I can import machinery?

It depends on how prepared your company is, but you always need BOI to approve your Machinery List before importing, and you should use the privilege within BOI's set timeframe after receiving your promotion certificate.

Let Transpo Logistics handle the logistics and machinery-and-raw-material import side for your BOI-promoted factory, from the earliest stages through to production start-up. Message us for a free consultation.

Phone: 02 105 8651

Email: sales@transpologistics.com