Why is it Profitable to Setup a Branch Office in Thailand?
The most significant advantage is the operational and strategic control a parent company can have on its subsidiary. Also, it will be way easier to follow a common operating process, particularly when the parent company sends the business professionals to manage the subsidiaries. In fact, there is less risk of losing your company’s intellectual property as the parent company can always implement common data access alongside security protocols. Similarly, cost synergies are possible as the parent and its subsidiaries can use common financial systems and create joint marketing programs. Now that you know about the advantages of setting up a branch company in Thailand you might like to have one, especially when the process will take just 6 months. What say? To set up a branch office for your offshore entity (applying for an Alien Business License), these documents are required;
- Affidavit of your offshore company
- Shareholders List of your offshore company
- Letter of appointment (appointing an individual to be the authorized representative in Thailand – for managing the Branch office)
- Letter of salary (salary that the abovementioned representative would be getting for working in Thailand
- List (organization chart) of the head office and its subsidiaries
- Detail about the product.
- Functions of the company
- Company objective
Even though it is the huge list of documents, at first what you need to submit is the detail about your product, functions of the company and its objectives, so that you can get at least some confirmation from the office. Remember, a lot depends upon this information. However, the approval of the Alien Business License cannot be guaranteed as this would depend on the official’s discretion. Please note that you can expect something positive only if the Thais would benefit from your business in Thailand.
As for the license for a Trader of the second-hand item, it requires the holder to have a fair understanding of Thai language (reading and writing). Legally, the requirement of Trader of second-hand item License would supersede the permit from the Alien Business License.
