Activity 7.34 An International Business Center: IBC refers to the activity that mainly provides services for associated enterprises. The IBC acts in a similar manner as the headquarters or regional operating headquarters, and it can also conduct trading activities. However, in order to apply for promotion of the trading activities, it must initially conduct core business in providing services for the headquarters. Activity 7.37 International Procurement Office: IPO refers to the activity that procure raw materials, parts, and components from various sources for clients which are factories or dealers, both for domestic wholesale and/or exports. The IPO acts as a sourcing unit for factories or distributors. Activity 7.7 Trade and Investment Support Office: TISO refers to the activity that supports the investment of industries both in Thailand and abroad. Many scopes of business under this activity can apply for promotion e.g., engineering services; consulting services; machine installation, maintenance and repair. However, it must be noted that each activity has different conditions. (More information is available in the Investment Promotion Application Form Filling Guidelines.)

The BOI has repealed promotion of International Trading Center (ITC) and replaced with the IBC which incorporates the trading activities. However, as the company must conduct headquarters activities before being able to conduct trading activities, some companies which do not want to be the HQ cannot apply for promotion in the trading activities. In addition, as the Thai Government is determined to push Thailand forward to being the regional trading and investment center, it recognizes the importance of the IPO which is significant for the service sector in Thailand as it helps complete the supply chain. Therefore, the BOI reinstates the promotion of IPO in order to stimulate the country’s economy and investment. For the differences among the IPO, IBC, and TIISO, please refers to the answer in item 1.

At the moment, the BOI has no plan to reinstate the promotion of ITC (in categories) because it is currently being promoted as part of the IBC.

Incentives: 1. Exemption of import duties for raw materials selld to manufacturers for producing, mixing, assembling, and exporting. 2. Exemption of import duties for machinery used in the IPO activity. 3. Majority of foreign shareholders. 4. Land ownership. 5. Visa and work permit for aliens working in the IPO projects. Conditions: 1. Must have paid up registered capital of 10 million baht. 2. Minimum investment of not less than 1 million baht within 3 years for activities such as asset procurement, rental fees, office renovation, etc. (excluding cost of land and working capital). 3. Other specific conditions for projects according to the announcement regarding activity 7.37 e.g., projects must have or rent a warehouse, must have warehouse management system, must have an appropriate system for inventory inspection, must purchase from at least 1 supplier in Thailand.

A company can apply for promotion of both the TISO and IPO (separate application forms) because one company can apply for more than one activity as long as it follows the specific conditions of each activity.

Application can be submitted via e-Investment at the BOI’s website at https://boi-investment.boi.go.th/public/index_en.php. The application form can be downloaded in PDF format for study at https://www.boi.go.th/upload/content/F%20PA%20PP%2003(Th)%20e-Form_6008fa2cee5a7.pdf. After submitting the application, our staff will contact the applicant for interview on the project detail, then a report will be presented to the Board. The process duration is varied in line with the investment capital, for example, for an investment capital of less than 200 million baht (excluding cost of land and working capital) the process takes 40 working days as from the application submitting date; for an investment of 200 – 2,000 million baht, the process takes 60 working days, and for an investment of over 2,000 million baht, the process takes about 90 working days.

At the moment, the deadline has not been set.

At the moment, the deadline has not been set.

The ITC and IPO activities are similar services. As the IPO is part of the ITC, so the ITC license covers all IPO activities. The company can conduct all IPO activities using the ITC license without any specific conditions. It is not necessary to cancel the ITC license and apply for IPO license because the ITC conditions are more flexible. Therefore, the company that holds the ITC license does not need to apply for IPO license as they are the same services.

It is not necessary to apply for new IPO license because the activities are similar, and the conditions, rights and incentives are not different.

The company that holds the IBC license can apply for promotion in the IPO activities because one company can apply for more than one license or activity. In this regard, the company must follow the conditions of each type of activity. However, the IBC license cannot be changed into the IPO license because they are different activities and services.

The company can apply for promotion in the IPO activities if it provides services in procurement of raw materials, parts and, components for domestic wholesale and/or exports. And it must follow the conditions of this category.

A new registered company must be established in Thailand. The majority shareholders can be Thai or foreigners.

The IPO cannot conduct the ‘out-out’ activity (manufacturing and selling outside Thailand) because the condition stipulated that it must have domestic warehouse (own or rent) for inspection or repackaging before selling.

There are no specifications regarding the size or type of warehouse but it should have appropriate size and equipment for the quantity and type of goods. The company can either rent a warehouse, or build/renovate its own warehouse. As for the software program, it is recommended that it must be able to update stock inventory real time, with details such as number of goods in stock, shelf number, etc. The software must also link to all related departments. The Office does not specify type of the software. However, manual system using computer programs such as Microsoft Excel or Microsoft Word that cannot be updated real time is prohibited.

It is recommended that the software program must be able to update stock inventory real time, with details such as number of goods in stock, shelf number, etc. The software must also link to all related departments. The Office does not specify type of the software. However, manual system using computer programs such as Microsoft Excel or Microsoft Word that cannot be updated real time is prohibited.

There are no specifications regarding the size or type of warehouse. The warehouse should have appropriate size and equipment for the quantity and type of goods. The company can either rent a warehouse, or build/renovate its own warehouse. As for the software program, it is recommended that it must be able to update stock inventory real time, with details such as number of goods in stock, shelf number, etc. The software must also link to all related departments. The Office does not specify type of the software. However, manual system using computer programs such as Microsoft Excel or Microsoft Word that cannot be updated real time is prohibited.

There are no specifications regarding the size or type of warehouse. The warehouse should have appropriate size and equipment for the quantity and type of goods. The company can either rent a warehouse, or build/renovate its own warehouse. The company’s office can also be used as a warehouse but it must be ensured that the lessor or owner allows such building to be used as a warehouse, and that there is no legal prohibition for such use.

This condition still remains. It is recommended that the software program must be able to update stock inventory real time, with details such as number of goods in stock, shelf number, etc. The software must also link to all related departments. The Office does not specify type of the software. However, manual system using computer programs such as Microsoft Excel or Microsoft Word that cannot be updated real time is prohibited.

The company can rent a warehouse, and if so, it must notify the BOI upon applying for promotion. The warehouse must have the quality control and repackaging process.