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Representative Office in Thailand

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representative office in thailand

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Setting up your Representative Office in Thailand will be a pretty easy task if you consult us. We assure you the following:

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9 Business Entities In Thailand

What Is A Representative Office in Thailand?

  • A Thai representative office is one of the important business entities in Thailand, facilitating imports and exports by foreign companies. It can be classified as under;
  • It cannot do purchases, make sales or negotiate business
  • The head office pays its expenses, including office rentals, staff salaries, and expenses to run the office and to visit the prospective clients
  • It is not subjected to corporate income tax, apart from the interests on the funds it has received from the head office.

Two Good Reasons To Have A Representative Office In Thailand

  • Thai Representative Office need not pay corporate income tax
  • If you are associated with import and export business, your Representative Office can look after the time movement of the goods, its quantity and quality

5 Objectives Of A Thai Representative Office

01

Reporting to the head office about business conditions, trends and movements in the country

02

The document should include reserved name of the company, its business objectives, name of the promoter

03

Upon elaborating the share structure, a statutory meeting is convened, wherein the articles of incorporation are approved. Also, the Board of Directors

04

The directors should submit their company’s establishment application within the three months of the Statutory

05

Businesses should obtain their tax I.D. card as well as the number for the company within sixty days of the incorporation from the Thai Revenue

Understanding Representative Office, Branch Office And Regional Office In Thailand

Representative Office

Allowed to contact customers/clients and enter into contracts on behalf of the head office, but can’t make sales.

It can;

(a) Contact customers to introduce its head office to them

(b) Research commercial information and provide the information to the head office

(c) Do market research.

(d) Market goods at trade fairs

(e) Rent an office and employ staff

(f) Enter into contracts with local clients/customers on behalf of the head office

Branch Office

Allowed to conduct a wide range of activity, like buy and sell goods, render services, sign contracts and build things.

It can;

(a) Do everything that a representative office does.

(b) Regularly buy and sell goods and services

(c) Get involved in manufacturing, processing and construction like any other local company, provided Thai laws doesn’t prohibit it doing.

Regional Office

It can;

(a) Communicate, coordinate and direct, on behalf of the head office

(b) The operation of branches and affiliates which are located in the region

(c) Provide services in consulting and management

(d) Training and personnel development

(e) Financial management

(f) Marketing control and sales promotion planning

(g) Product development

(h) Services in research and development

Documents

Requirements:

  1. Foreign business license
  2. Details of the company’s directors, including their address, nationality, race, age, name and number of shares held.
  3. Copy of the company‘s Articles of Association
  4. Copy of the company’s Articles of Incorporation or Memorandum of Association
  5. List of the company’s shareholders, number of shares they are holding and their nationalities
  6. Company’s affidavit including company’s name, date of registration, address, registration number, and the jurisdiction under which the business is registered
  7. A vivid report of the company’s capital, the amount of the capital stock and the number of shares with the par value
  8. Any certificates or papers or documents showing that the manager of the Representative Office will have power of attorney to run the business. In case, the manager is a Thai citizen, a copy of his/her identity, including national ID along with household registration should be submitted.
  9. Translation of the last three years company’s financial report into Thai

Frequently Asked Questions

A representative office is establishment to execute the marketing and non-transactional operations of a company. It is usually set up in a country like Thailand where a branch office is not warranted.

A Representative Office can be characterized under the following features;

  • Doesn’t receive revenue from the providing services
  • Cannot receive any purchase orders
  • Expenses are paid by the head office only
  • Not subject to income tax

They are as follows;

  • Performing quantity and quality checks
  • Provide advice about the products
  • Accept purchase orders
  • Exporting products
  • Perform after-sale services
  • Publicizing products and services
  • Acting as an agent of the head office
  • Preparing business reports to the unaffiliated firms

According to the Revenue Department Re: Income Tax and Business Tax of a Representative Office, B.E. 2526, a Representative Office that is to offer services outside the defined scope should be a subject to Thai corporate income taxation.

Setting up a Thai Representative Office entails a lengthy and complicated process with bureaucratic practices and language barrier. It is recommended to seek legal advices for assistance throughout the process.

Well, it will take around 4 to 6 months to complete the registration.

A definitive cost can be provided if we get clarification to the following;

  • Do you have a designated office in Thailand?
  • Registered capital of the headquarter
  • Details regarding the establishment of the headquarter
  • How many expats you want to have working?
  • The company’s financial statement along with three years annual audit report

CONTACT US

KONRAD LEGAL COMPANY LIMITED

2 Pacific Place Building, 12th Floor,
Unit 1209, No.142, Sukhumvit Road,
Klongtoey, Bangkok 10110

Phone: +66 2626-0277

[email protected]
[email protected]

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