The biggest difference between registering a manufacturing company in Thailand and registering a trading or service company is this: a business licence does not mean you can start production.
| Common situation | Consequence |
|---|
| Machinery is ordered and shipping booked before anyone thinks of the BOI machinery list | The equipment arrives before the machinery list is approved, so the company pays import duty or the goods wait at port |
| Drawings are finished and the building permit is filed, only then does the company find it needs an environmental assessment | No building permit until the assessment is approved; a full EIA usually takes 6–7 months, and the whole schedule moves back |
| The factory is built and fitted out before anyone asks about the factory licence | The building does not meet the requirements of its factory category and has to be reworked before acceptance |
| Registered capital and shareholding are set up as for a trading company | When applying for BOI or bringing in foreign staff, capital or shareholding has to change, triggering another round of amendments |
The root cause: company registration, the BOI application, land, environmental assessment, construction, the factory licence and machinery purchasing sit with different agencies and different people, and nobody is assigned to put them on one schedule worked back from the production date.
1. Settle five decisions before you start
| Decision | Question to answer | Why it matters |
|---|
| 1. Whether to apply for BOI | Is the activity eligible for promotion? Are the incentives worth the ongoing compliance obligations? | BOI determines import duty on machinery and raw materials, corporate income tax incentives, foreign shareholding and land, foreign staff and more |
| 2. How company registration and BOI fit together | Register the company first or apply for BOI first? | The two can run at the same time: in month 1 the company name is reserved and the company formed while the BOI assessment and category choice are done; the BOI application is filed as soon as the company exists |
| 3. Buy land and build, or lease a factory | Inside or outside an industrial estate? Build on purchased land or lease a ready-built factory? | Building on purchased land takes about 12–14 months end to end; leasing a ready-built factory avoids land purchase, title transfer, building permit and construction time and takes about 7–9 months. Inside industrial estates, land and construction procedures go through the Industrial Estate Authority of Thailand (IEAT), and foreign companies approved to operate in an estate may hold industrial land |
| 4. Whether an environmental assessment is needed | Does the project reach the full EIA threshold? Does the estate already hold an approved EIA? | A full EIA takes about 6–7 months (including two rounds of public hearings) and an IEE about 3–4 months, as determined by the environmental authority; projects inside an estate with an approved EIA are usually exempt |
| 5. Foreign shareholding, registered capital and machinery import | 100% foreign-owned? How much registered capital? When does the first machinery arrive? | Most manufacturing activities are not restricted under the Foreign Business Act, with some exceptions. Registered capital is usually paid up 25% first and in full before production. Duty-free machinery requires the BOI machinery list to be filed and approved first (review of a new list can take up to about 60 working days), and duty-free import must be completed within 30 months of the BOI certificate; for projects applied for after 2015, used machinery is generally not duty-free |
2. How the eight work streams run in parallel: one flowchart
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Starting from the signing date, the flowchart lays out eight work streams month by month: company registration and capital, the BOI certificate, land selection and transfer (or a leased factory), a full EIA or an IEE, factory construction, and machinery. The environmental assessment and factory construction (usually 6–8 months) are the two variables that set the overall timeline: where an assessment is required, the building permit can only be obtained after approval, and the whole timeline moves back accordingly.
Working back from the month production starts, these are the four points where projects most often get stuck:
| Sticking point | How to prevent it |
|---|
| 1. No building permit because the assessment is not approved | Right after signing, determine whether a full EIA, an IEE or no assessment applies; if one is needed, submit the project in month 4 alongside design work |
| 2. The factory does not meet factory licence requirements | Determine the factory category at the design stage and design to its requirements; file the factory licence application (RG.3, about 60 days) before construction, and obtain the full licence at completion |
| 3. Machinery arrives before the machinery list is approved | As soon as the BOI certificate is issued, fix the installation drawings and machinery list, file them first, then book shipping |
| 4. Foreign technicians are not in place for installation | Start the BOI fast-track work permit process when the certificate is issued, and schedule staff arrival back from the installation plan |
What Z&X does: we work back from the production month and put all eight work streams on one schedule, with the responsible party and deadline for each item and a progress report every week. Company registration, BOI, the factory licence, machinery list filings and foreign staff procedures are handled by one Z&X team; land, environmental assessment and factory design and construction are handled by specialists appointed by the company, and Z&X coordinates them against the schedule. After production starts, bookkeeping, tax filing, BOI compliance and audit follow on directly. Projects in the Eastern Economic Corridor (Chonburi, Rayong, Chachoengsao) are followed up on site by our Chonburi EEC Branch.
Appendix: month-by-month schedule (month 1 = signing month, building on purchased land)
| Work stream | Authority | Key steps by month | Handled by |
|---|
| Company registration & capital | DBD, Social Security Office, accounting firm | Month 1 name reservation and incorporation; month 2 social security registration, 25% capital paid and bank account; months 3–4 tax registration (PP.20) and customs import/export registration; month 13 100% capital paid; month 14 production starts | Z&X |
| BOI certificate | Board of Investment | Month 1 assessment and category; month 2 application filed (about 10 working days); months 3–4 interview and project review (about 60 days); month 5 approval notice; month 6 BOI certificate issued; months 6–7 land ownership permit and BOI fast-track work permits; months 7–13 duty-free machinery and raw material applications; month 14 BOI inspection | Z&X |
| Land selection & transfer | Land Department, estate office | Month 1 site selection and reservation contract; month 2 purchase contract and first 25% payment; months 5–7 second to fourth payments of 25% each; month 5 estate construction permit; months 8–13 title transfer | The company (Z&X assists with the BOI land permit) |
| Leased factory (alternative) | Land Department, estate office, fit-out contractor | Month 1 factory search and visits; month 2 lease signed; month 3 lease registration and fit-out/line layout filing; months 4–5 fit-out; month 6 acceptance. This replaces the land and construction streams, for about 7–9 months in total | The company and its contractor |
| Full EIA (projects above threshold) | Environmental authority, EIA consultant | Month 4 project submitted; months 5–6 two public hearings (about 45 days each); month 7 EIA report (about 30 days); month 8 document review (about 15 days); months 9–10 two expert reviews (about 15 and 45 days); month 11 approved. If not approved, more documents and a third review, to about month 13 | EIA consultant appointed by the company |
| IEE (below EIA threshold) | Environmental authority, EIA consultant | Month 4 project submitted; month 5 IEE report (about 30 days); month 6 document review (about 15 days); month 7 expert review (about 30–45 days); month 8 approved | EIA consultant appointed by the company |
| Factory construction | DIW, building authority, estate office | Months 3–4 factory and environmental design drawings; month 4 construction tender; month 5 building permit application (about 30 days); month 6 building permit; months 6–7 factory licence application RG.3 (about 60 days); month 7 preliminary licence RG.4; months 8–13 construction (usually 6–8 months); month 14 completion and RG.5 | Design and construction by the company's contractors; factory licence by Z&X |
| Machinery | BOI, Customs, DIW | Month 7 installation drawings and machinery list; months 8–10 machinery purchase; months 11–12 shipping and import; month 13 installation and commissioning; month 14 trial run | Purchasing and customs clearance by the company and its broker; machinery list filing and import release by Z&X |
These are typical timings; actual progress depends on official review times, completeness of documents, industry and location, and follows the project schedule. Land is usually paid in four instalments of 25%, so plan funding early.
See also: Registration & Approval Services for Chinese Manufacturers
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