Technology Transfer Plan Guidelines for Thai BOI

Foreign investors in Thailand who will be applying for a license in order to engage in a restricted business activity according to the Foreign Business Act of 1999 must prepare a technology transfer plan. Section 5 of the Foreign Business Act requires that technology transfer constitute one factor to be considered in permitting foreigners to engage in a restricted business activity. The requirements tend to be rather complicated; therefore, we prepared these brief guidelines in order to assist our clients in formulating a technology transfer plan for the Foreign Business License application.

  • “Technology transfer” refers to the transfer of scientific knowledge, skills, experiences, or methods that causes the receiver to be able to be self-dependent in the use of the technology; it does not refer to the disclosure of trade secrets.

The following are different methods of technology transfer. All of the following methods require the applicant to specify the budget, the period of time, and the details regarding the people who will be recipients of the technology transfer.

  • Technology Transfer Contract: a legal agreement with a business partner in which technology will be transferred directly to personnel of the business partner.
  • Involvement of Thai personnel in Research and Development: the involvement of Thai personnel may be within Thailand or in a foreign country.
  • Involvement of Thai personnel in the development of new goods or services: details regarding how soon the new goods or services will be offered to the market must be specified, as well as the budget allocated for the new market offerings.
  • Appointment of a Thai national in a position in place of a foreign national: In this category, a foreign national will occupy the position first and will train a Thai national to replace him or her.
  • Sending a foreign expert to train Thai personnel in Thailand or sending Thai personnel for training overseas.
  • Support for education and/or academics for the benefit of educational institutes or other related institutes: The support must be for an academic field related to technology.
  • Training: This refers to lectures, seminars, or meetings whether in Thailand or overseas. It can be general training or specific training.

Foreign applicants that offer credible technology transfer proposals will be offered various benefits and privileges from different Thai government departments, such as the Ministry of Labour, Ministry of Science and Technology, the Board of Investment in the form of tax incentives, and in regards to visa and work permit extensions. In any case, the information presented above has been simplified; therefore, Foreign Business License applicants are advised to consult with competent legal counsel.

See the Foreign Business License Application page here.


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Category: Administrative Law, Business in Thailand, Thailand BOI

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Siam Legal is an international law firm with experienced lawyers, attorneys, and solicitors both in Thailand law and international law. This Thailand law firm offers comprehensive legal services in Thailand to both local and foreign clients for Litigation such as civil & criminal cases, labor disputes, commercial cases, divorce, adoption, extradition, fraud, and drug cases. Other legal expertise of the law firm varied in cases involving corporate law such as company registration & Thailand BOI, family law, property law, and private investigation.

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