Representative Office Thailand: Along with Regional Office or Branch an Alternative for Expansion in Thailand

A limited company is one of the most common solutions for international companies looking to expand their business activities into Thailand. However, there are alternatives that offer advantages.

Representative Office & Regional Office

A representative office (“rep-office”) or a regional office are suitable options for international companies who simply wish to obtain a juristic person number from the Thai authorities. With this number it is not necessary to set up a separate company or apply for a Foreign Business License (FBL). However, companies must set up physical offices to carry out any legally permitted activities not related to income.

Representative Office activities not related to income:

1. Sourcing of goods or services in Thailand for the head office
2. Checking and controlling the quality and quantity of the goods purchased or hired by the head office for manufacture in Thailand
3. Giving advice concerning goods from the head office sold to agents or consumers
4. Propagation of information concerning new goods or services from the head office
5. Reporting to the head office on business trends in Thailand

Regional office activities not related to income:

1. Communicating, coordinating and directing, on behalf of the head office, the operation of branches and affiliates that are located in the region
2. Consulting and management in training and human resources development
3. Providing financial management services
4. Marketing control and sales promotion planning
5. Product development
6. Services in research and development

A rep-office or a regional office may not generate any income except for the financial support from its head office – which shall not be subject to corporate income tax – or receive any purchase orders, make sales or negotiate business with any third party. The minimum capital required to register a rep-office or a regional office is THB 2 million (approx. USD 62,092), which must be brought/transferred to their Thai bank account within 3 years as follows:

• The first 25% of the required registered capital is to be paid within the first 3 months of operation
• The second 25% is to be paid within the first year of operation
• The third 25% is to be paid within the second year of operation
• The remainder is to be paid within the third year of operation

Do you want to expand your business to Thailand? Together we will help you find the best company form for your business.

Bunnasomboon (Aaron) Chaiparinya, Partner, JTJB International Lawyers Co., Ltd. – Member of ECOVIS International, Bangkok, Thailand

Branch Office

Although a rep-office or a regional office would be seen as a branch office in some countries, in Thailand, subject to the FBL, a branch office can obtain a juristic person number and perform any “income-related activity” in Thailand on behalf of its head office.

The required minimum capital for a branch office is minimum THB 3 million (or more depending on the FBL requirements). The registration process for a branch office could be significantly longer than for a rep-office or regional office, depending on the type of business activity, explain the advisers from JTJB International Lawyers Co., Ltd. – Member of ECOVIS International.

For further information please contact:

Bunnasomboon (Aaron) Chaiparinya, Partner, JTJB International Lawyers Co., Ltd. – Member of ECOVIS International, Bangkok, Thailand
Email: aaron@jtjb.com

Yukgrit Kantamanee, Associate, JTJB International Lawyers Co., Ltd. – Member of ECOVIS International, Bangkok, Thailand
Email: yukgrit.k@jtjb.com