Can the company commence operations, receive and make payments, or issue invoices during the BOI approval period?
Business activities may be carried out provided the corporate legal‑entity status and other necessary licensing prerequisites are satisfied. However, “BOI application under review” shall not be interpreted as automatic entitlement to BOI incentives or qualifications for restricted business activities. Company registration and BOI assessment constitute two separate legal and project‑management workstreams.
Accordingly, for most duly‑registered enterprises with permissible business scope and completed relevant tax‑ or industry‑specific registrations, contract‑signing, procurement, receipts and payments may proceed during BOI review. Tax invoices can be issued in accordance with rules after VAT registration is obtained. Nevertheless, BOI‑related tax incentives, machinery duty exemptions, BOI privileged channels for foreign specialists and similar benefits may only be utilised once corresponding promotion qualifications and follow‑up formalities are completed.
1. Activities Generally Permitted in the Interim
| Item | General Position | Critical Preconditions |
|---|
| Contract‑signing and procurement | Permitted | The company is legally incorporated and the activity itself does not require outstanding special permits not yet obtained. |
| Bank receipts and disbursements | Permitted | Corporate bank account is opened and satisfies bank KYC requirements. |
| Issuance of VAT tax invoices | Permitted after VAT registration is secured | Business‑license or BOI‑application acknowledgment cannot substitute formal VAT registration. |
| Hiring of Thai‑national employees | Permitted | Compliance with labour, social‑security and tax regulations. |
2. Benefits That Cannot Be Accessed In Advance Merely Because “BOI Application Is Under Review”
BOI tax incentives and machinery duty‑exemption privileges. Such benefits cannot be applied until promotion status is granted and corresponding benefit‑utilisation procedures are fulfilled.
BOI special pathways for foreign specialists and technical personnel. Eligibility is conditional upon an approved promoted project and completion of relevant BOI formalities.
Activities restricted under the Foreign Business Act. Where a BOI promotion certificate is required prior to obtaining a Foreign Business Certificate (FBC) from DBD, “application in‑progress” does not count as an operating permit prior to formal qualification.
Factory production. Formal manufacturing readiness also depends on factory premises, environmental approvals and factory‑operating permits, independent of BOI status.
3. Why “Early‑Stage Operations” Mostly Create Timeline Risks Rather Than Pure Legal Risks
Many Chinese‑invested enterprises are fully aware that BOI approval is still pending. The common pitfall lies in failing to integrate company registration, VAT registration, machinery arrangements, factory permits, staff deployment and BOI milestones within one unified project timeline. Consequences may include scenarios such as a company able to receive funds yet unable to issue invoices as scheduled; machinery arriving while duty‑exemption procedures remain incomplete; or personnel on‑site without access to BOI‑administered immigration pathways.
4. Recommended Parallel‑Workflow Approach Advised by Zhongxin Tax & Accounting
Zhongxin manages such projects drawing on C (Compliance Calendar) and D (Dual‑Synchronization for China‑Thailand Operations) from the CODE Compliance‑Growth Model. Contract‑signing, machinery procurement, staff deployment and capital milestones from Chinese headquarters are scheduled in parallel with Thai‑side corporate registration, VAT enrolment, BOI processing, machinery logistics and local‑licensing workflows. The objective is not to wait for full BOI conclusion before commencing operations, but to maximise parallel‑executable tasks while staying within compliance boundaries.
| CD | Definition | Application within this scenario |
|---|
| C | Compliance Calendar | Schedule backwards from target production‑launch date for BOI reviews, certificate issuance, machinery‑related work and reporting deliverables. |
| D | Dual‑Synchronization for China‑Thailand Operations | Align Chinese‑headquarter machinery‑procurement, capital‑funding and staffing plans alongside Thai‑local BOI and on‑the‑ground execution workstreams. |
5. Professional References and Service‑Scope Boundaries
Whether a given business activity can be performed during BOI assessment depends on the enterprise’s registered business scope, foreign‑investment access rules, VAT status, industry‑specific permits, factory‑operating licences and contractual arrangements. This article outlines general project‑management logic and shall not be construed as case‑specific legal confirmation that an individual enterprise “may commence operations immediately”.
Policy notes: Thailand BOI, FAQ and Foreign Business Act‑related guidance. For activities restricted under the Foreign Business Act but eligible for BOI promotion, a Foreign Business Certificate (FBC) may be applied for at DBD upon obtaining the BOI promotion certificate, removing the requirement for an FBL licence. Thailand BOI, Investment Promotion Guide 2025: BOI application, project evaluation, promotion acceptance and certificate issuance constitute discrete procedures. Actual utilisation of BOI benefits must follow the terms of the promotion certificate and subsequent formal procedures.
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