A representative office in Thailand, as the name suggests, is an ideal way to represent your existing business in the kingdom. With minimum legal and formal requirements, it is easy for foreign investors to establish this type of business structure in Thailand. Before you start with your preparation for registering a representative office in Thailand, read through this FAQ blog.
What is a Representative Office?
A representative office is an office established by a foreign company in Thailand to engage in non-revenue-generating activities such as market research, coordination, and promotion of the parent company’s products or services.
What are the eligibility requirements for setting up a Representative Office?
To establish a representative office in Thailand, you must meet the following requirements:
- The parent company must be a juristic person incorporated outside of Thailand.
- The parent company must be engaged in business activities for at least one year before the application date.
- The parent company should have no outstanding liabilities or legal issues.
What activities can a Representative Office engage in?
Representative offices in Thailand can involve in non-revenue-generating activities only. These activities, typically include market research, sourcing of goods and services, quality control, coordination of activities with Thai customers or suppliers, and promotion of the parent company’s products or services.
Can a Representative Office generate revenue in Thailand?
No, a representative office cannot generate direct revenue in Thailand. Its activities should remain non-profitable and supportive of the parent company’s operations.
What is the process for setting up a Representative Office?
The process involves the following steps:
- Submitting an application to the Ministry of Commerce in Thailand.
- Providing necessary supporting documents, including the company’s certificate of incorporation, financial statements, and a letter of intent.
- If approved, register with relevant government agencies, such as the Revenue Department and the Department of Business Development.
How long does it take to establish a Representative Office?
The timeline can vary, but it typically takes several months to complete the registration process, including approval from the Ministry of Commerce and registration with other government agencies.
Are there any restrictions on staffing a Representative Office?
Yes, a representative office in Thailand must employ only foreign nationals and cannot hire local Thai employees. The number of foreign staff members may vary based on the parent company’s size and the scope of activities.
What are the reporting requirements for a Representative Office?
Representative offices must submit annual reports detailing their activities to the Ministry of Commerce. These reports should include information about the office’s operations, financial position, and any changes to the office’s structure.
How long can a Representative Office operate in Thailand?
A representative office’s registration is valid for a maximum of five years. Upon expiration, you can apply for an extension if necessary.
It’s important to note that regulations and procedures may change over time, so it’s advisable to consult with a Thai corporate law professional familiar with the current requirements for setting up a representative office in Thailand. Or simply, you may email us at [email protected] and our team with more than a decade of experience in the domain will get back to you within 1 Thai working day.
