Investment by foreigners is generally encouraged and with the exception of the key industries, investment participation is not unduly regulated. The Government recognise that investment could be actively encouraged if certain privileges were granted to foreign companies. Therefore, in order to facilitate the flow of investment into the country, and to determine the appropriateness of investment proposals, the Board of Investment ("BOI") was established by the Thai Government.

The BOI grants special guarantees, tax exemptions and other incentives to encourage investment. These promotional privileges may look attractive, but often come with conditions including stipulations concerning the amount of foreign ownership, minimum production levels or minimum export quotas.

NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

If you would like further advice please contact: David Ellis, Johnson Stokes & Master, 16th Floor, Princes Building, 10 Chater Road, Hong Kong; Tel 2843 4226; Fax no. : 2845 9121. Alternatively do a text search "Johnson Stokes and Master" and "Business Monitor".