BOI Feasibility Study for the Large Business Operation
One of the basic criteria for BOI project approval with investment capital of over 80 million Baht is that the applicant must submit the project’s feasibility study as a Board requirement. The feasibility study is divided into 2 types based on the amount of investment capital. Note that the mentioned investment capital does not include the cost of land and working capital of the company.
- A Feasibility Study for a project with investment capital of over 80 million baht but not more than 500 million baht.
At the time of application submission, the said project must prepare a possibility report explaining the overview of the prospective project, demand of the products applying for the BOI promotion, future demand and growth rate of the products, major export markets and future trends of these markets, financial feasibility of the project, cash flow, sources of funds, etc.
- A Feasibility Study for a project with investment capital of over 500 million baht.
Applicant who applies for the BOI promotion with the amount of more than 500 million baht investment capital needed to arrange the Feasibility study with the content as follows:
- Summary of the Project
- Industry overview which requested to include;
- The linkage between the products for which investment promotion is requested with other industries.
- Demand for the product, both domestic demand and major export market and future trend of these markets
- Local production capacity of similar products
- The Appropriateness of the project in terms of investors, financial aspects, the competitiveness, technical aspects, effects on the environment and research and development.
- Effects to the Overall Economy, for instance, how much the Government will lose in revenue by promoting the project? , Benefits to the overall economy.
- The Assistance from the Government
- The necessity to apply for promotional privileges
- The degree of necessity to adjust import duties on raw materials and finished products
- Is it necessary to request special protection from competition from foreign countries or is it necessary to limit the number of local manufacturers?
- The government assistance in various aspects, such as electricity, water, infrastructure, etc.
For more information and guideline on how to do the feasibility study to apply for BOI promotional privileges required for the large business operation, contact any of our Siam Legal offices in Thailand.
About the Author (Author Profile)
Sirinee Kamphaengkaew is an Attorney at Law for Siam Legal specializing in corporate law. She was educated at American University's College of Law in Washington, D.C., and at Chulalongkorn University in Bangkok. She earned a Bachelor of Law with Honors, and two Masters of Law, focusing on Business Law and Intellectual Property Law. She has been a member of the Law Society of Thailand since 2005, and is fluent in both Thai and English.