Do You Think Setting-up a Representative Office in Thailand is a Wise Choice?

Well, that depends on the nature of the business and its objective, of course. Any foreign entity may set-up a representative office in Thailand in order to engage in a limited non-revenue earning activities. A representative office in Thailand is established to engage in any one of the below-mentioned functions;

• Search for services in Thailand for headquarters overseas,
• Provide advice to headquarters about goods and services to be ordered,
• Supply information of the products to the customers in Thailand,
• Report economic movement to the headquarters,
• Check the quantity along with the quality of the products ordered by the headquarters

The majority of the foreign corporations involved in imports and exports find it feasible to open offices in Thailand in order to support their trading needs. This is probably because they want a small office in the country that does not generate any expense, letting the head office bear all the expenses. Is that all why should you consider a representative office? Let’s have a look at the two most striking reasons of setting-up a representative office in Thailand;
1. Thai Representative Office need not pay tax, except a withholding tax.
2. If you are associated with import and export business, the office may look after the time movement of the goods and/or its quantity and quality.

If this is exactly what you have been looking for, then you know what must do. Just make sure you provide information such as;

• Precise information of the company’s objectives
• Justification as why the necessity of establishing office in Thailand
• Translation of the company’s financial report (last three years) in Thai
• Employees’ list
• List and descriptions of the types of equipment and machinery to be used
• An estimate of the expenses in the office in the next three years.