How effectively can you open a Representative Office in Bangkok?
Representative offices have their headquarters in other countries that are the main source of funding for these offices. Representative offices cannot do business transactions. The funding for the office will be completely provided by the Head Office. But one has to face several legal conditions from the Thai government before setting up a Representative office.
There are few objectives of which at least one needs to be fulfilled by a Representative office:
- To monitor the business movements in Thailand and inform the head office or the affiliated company or the group company.
- To give advice on various aspects pertaining to the goods distributed by the head office or affiliated company or the group company to the distributors or the users.
- To seek for the supply source of goods or services in Thailand for the head office or affiliated company or the group company.
- To inspect and control the quality and quantity of goods that the head office or affiliated company or the group company purchased or hired to manufacture in Thailand.
- To disseminate the information in relation to the new goods or services of the head office or affiliated company or the group company.
The process of setting up a Representative office in Thailand involves the presentation of a number of documents:
- Foreign Business License is the most important thing the company needs to have.
- Company affidavit with all details like company’s name, registration number, date of registration, address, the jurisdiction under which the company is registered should be placed.
- They need to present a list of the names of the company’s directors along with their addresses, nationalities, ages, races, a number of shares held, and information on which directors have the power to bind the company.
- A list of the company’s shareholders, their nationalities and number of shares that each holds also needs to be prepared.
- The company’s Articles of Incorporation or Memorandum of Association (copy) is required.
- The company’s Articles of Association (copy) is also required.
- A detailed report of the company’s capital, the number of shares along with the par value of each, and the amount of capital stock that has been paid up needs to be presented.
#Note: The amount of capital assigned to the Representative Office must be 5 million baht for a period of five years with 2 million baht allocated in the first year.
- If there is any document, certificate or paper that proves that the Representative Office’s manager will have sufficient power of attorney to run the company, then that document needs to be presented. If the manager is a foreign citizen, then a copy of the manager’s passport must also be provided. In case, the manager is a citizen of Thailand, a copy of his or her national ID and household registration must be provided.
- The process of the completion of the registration of a Representative office in Thailand involves a long duration of at least 4-6 months. Then, the final opening of the office takes some more time.
- A registered office space/address is required in order to open the Representative office.
Some other information, rather clarifications are required in the process of establishing the cost price:
- Registered Capital of the Head Quarter
- Number of years since Head Quarter was established
- A designated office address in Thailand for the Representative office
- Number of expats you wish to have to work in this Representative office
- A copy of the company financial statement & annual audit for the last 3 years
- Objective behind establishing the Representative office (from the Objective list above)