What is TISO?
The Trade and Investment Support Office (TISO) is a business structure promoted by the Board of Investment (BOI), a government agency responsible for attracting and facilitating investment in Thailand. The BOI provides various promotional benefits to both Thai and foreign businesses to stimulate economic growth and encourage foreign direct investment. Under BOI Announcement No. Sor 3/2564, TISO offers non-tax incentives, such as simplified work permits and limited land ownership options.
TISO is ideal for foreign companies seeking a regional base in Thailand without typical Thai ownership requirements. However, with a requirement for annual sales and administrative expenses of at least THB 10 million, TISO is best suited for medium to large businesses and may not be the right fit for smaller enterprises.
Foreign companies often choose TISO for sales and service activities as part of their regional headquarters, leveraging its simplified setup process and operational flexibility. While TISO doesn’t provide tax incentives, its streamlined procedures make it an excellent option for firms prioritizing efficiency and control over their business operations in Thailand.
Key Benefits of TISO
TISO offers several compelling advantages for foreign businesses seeking to establish a presence in Thailand. These benefits make it an attractive option for companies focused on streamlined operations and regional growth.
1. Full Foreign Ownership
TISO allows businesses to be entirely foreign-owned, bypassing Thailand’s usual restrictions on foreign shareholding. This makes it a practical solution for companies that prefer full control over their operations.
2. Streamlined Visa and Work Permit Processing
Foreign employees of TISO companies benefit from expedited visa and work permit approvals through the BOI Single-Window Service Center. This simplified process reduces delays and ensures quicker onboarding of skilled staff.
3. Land Ownership Options
TISO companies are permitted to own land for specific purposes under BOI promotion, subject to the following conditions:
• Office use: Up to 5 rai (8,000 m²)
• Employee housing: Up to 20 rai (32,000 m²)
Eligibility for land ownership requires a minimum paid-up capital of THB 50 million, and the land must be used for BOI-approved purposes. If TISO status is revoked, the land must be sold within a year.
4. Feasibility Study Residency
TISO allows foreign staff to stay in Thailand to conduct feasibility studies, supporting early-stage business planning and decision-making. This benefit enables smoother entry into the Thai market.
5. Non-Tax Incentives Only
While TISO provides significant operational benefits, it is important to note that it does not include tax incentives or merit-based benefits available under other BOI promotion categories.
Eligibility Requirements for TISO
To qualify for BOI promotion under the Trade and Investment Support Office (TISO) category, businesses must meet specific criteria. These requirements are designed to ensure that eligible companies align with Thailand’s economic goals and TISO’s purpose.
1. Annual Sales and Administrative Expenses
TISO companies are required to maintain a minimum of THB 10 million (approximately USD 287,000) in annual sales and administrative expenses. This includes costs such as office rent, employee salaries, and other operational expenses, making TISO more suitable for medium to large enterprises.
2. Approved Business Scope
The company’s business plan must strictly align with BOI-approved TISO activities. Clear documentation of proposed services and operations is essential for approval.
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Permitted TISO Business Activities
TISO companies must have a BOI-approved business plan that includes the following activities:
1. Monitoring and/or Servicing Associated Enterprises
• Leasing office or factory buildings.
• Offering loans (separate from treasury center activities) in compliance with exchange control laws:
• Foreign currency loans to associated enterprises abroad.
• Thai baht loans to associated enterprises in Thailand.
• Thai baht loans to associated enterprises in Vietnam and countries bordering Thailand, restricted to trade and investment in Thailand or within those countries.
2. Advisory Services on Business Operations
• General business consulting, excluding activities related to securities trading and foreign currency exchange.
• Specialized professions, including accounting, legal, advertising, architecture, and civil engineering, require a business license from the Department of Business Development (DBD) or the relevant government agency prior to applying for BOI promotion.
3. Information Services on Goods Sourcing
• Providing goods sourcing and supplier information services for associated enterprises.
4. Engineering and Technical Services
• Offering engineering and technical services, except those related to architectural and civil engineering.
5. Activities Related to Machinery, Engines, Tools, and Equipment
Includes:
• Wholesale import
• Training services
• Installation, maintenance, and repair
• Calibration
6. Wholesale of Products Manufactured in Thailand
• Engaging in wholesale trading of Thai-manufactured products.
7. International Business Process Outsourcing (BPO)
• Providing BPO services delivered through telecommunication networks, including:
• Administrative services
• Finance and accounting
• Human resources (HR)
• Sales and marketing
• Customer service
• Data processing
Loan Services Requirement
If a TISO company provides loans to associated enterprises, it must also offer at least one additional service from points 2–7 above.
Limitations and Drawbacks
While TISO offers significant advantages, businesses should also be aware of its limitations and potential challenges:
1. No Tax Incentives
TISO provides non-tax benefits only, such as visa facilitation and land ownership options. It does not include any corporate income tax exemptions or reductions, unlike other BOI promotion categories.
2. Separate Accounting for Out-of-Scope Activities
If a TISO company operates activities outside the BOI-approved scope, it must maintain separate accounting systems for these activities to ensure compliance. This can increase administrative complexity.
3. High Expense Requirements
The annual minimum expense requirement of THB 10 million (approximately USD 287,000) may pose a challenge for smaller businesses or startups, making TISO more suitable for medium to large enterprises.
4. Approval Timeline
The TISO approval process typically takes 2–4 months, with the potential for delays if the BOI requests additional information or clarifications. Businesses should plan accordingly to account for these timelines.
Application Process
The application process for TISO status involves several key steps, ensuring that businesses meet the BOI’s requirements and maintain compliance.
1. Verify Eligibility
Confirm that the company meets the following criteria:
• Annual expense requirement of at least THB 10 million (approximately USD 287,000).
• Business plan aligned with BOI-approved TISO activities.
2. Prepare Documentation
Gather and complete all required documents, including:
• The official TISO application form.
• Financial statements.
• Detailed business plans.
• Any necessary licenses for regulated activities, such as legal or accounting services.
3. Submit Application
Submit the completed application form and supporting documents to the BOI for review. Ensure all information is accurate to avoid delays.
4. BOI Review
The BOI will review the submission and may:
• Request additional clarifications or documentation.
• Conduct background checks to verify the application’s details.
5. Approval and Registration
Upon approval:
• The company will receive TISO status.
• It can then proceed with operations under the BOI-approved scope.
6. Ongoing Compliance
Maintain compliance by:
• Reporting annual expenses to the BOI.
• Ensuring all activities remain within the approved TISO scope.
• Keeping accurate and separate accounting for any out-of-scope activities.
Related Articles
Explore more resources on BOI incentives and business opportunities in Thailand:
How to Apply for BOI Incentives in Thailand: A Guide for Foreign Investors
Thailand BOI Incentives for Software, Digital Platforms, and Content Businesses: A Comprehensive Guide
International Business Center (IBC) Regime in Thailand: Key Requirements and Benefits
Conclusion
The Trade and Investment Support Office (TISO) offers significant advantages, including full foreign ownership, simplified work permits, and land ownership options, making it an ideal choice for service-oriented companies that meet the required expense criteria. While TISO does not provide tax incentives, its operational benefits and streamlined processes are highly valuable for businesses aiming to establish a regional base in Thailand.
Contact us today for expert assistance with your TISO application and guidance through the BOI process. Let us help you achieve your business goals in Thailand.
