representative office Thailand

For those who want to establish a business in Thailand, setting up a representative office is one of the quickest ways for getting a foothold in that country. A representative office in Thailand represents its head office in that country.

What is a Representative Office?

A representative office is a non-profit and non-commercial business and is usually established to represent a particular business entity. Though this is a legal entity and has an important economic role to play but a representative office cannot engage in economic activities to generate revenues. It supports the activities of the mother company and its subsidiaries in Thailand or in any other country.

A representative office can:

* Source products and services in the country on behalf of the mother company
* Check and maintain the quality of goods purchased by the mother company
* Circulate information on behalf of the business entity
* Report to the head office regarding business development activities

How to form a Representative Office in Thailand?

To form a representative office, a business must file an application with the Thai embassy in the home country of the company. An affidavit must be filed containing information regarding the company, its director, shareholders, date of incorporation, jurisdiction and the name of the company. The company must grant a power of attorney to the manager of the representative office who will interact with the Thai government on behalf of the company.

The company also needs to submit documents mentioning the office plans, details of the company function and an explanation regarding the necessity of establishing the representative office.

Before you apply for establishing a representative office in Thailand, you must meet the following conditions:

* You must transfer 5 million Baht into your Thai bank account. This is your working capital for your representative office.
* Remit at least 2 million Baht during the first year of operations. After that, every year, transfer 1 million Baht in Thailand.
* The manager of your representative office must prepare an annual report summarizing the activities that are undertaken and submit it to the Ministry of Commerce.

Benefits of Having a Representative Office in Thailand

There are several benefits of establishing a representative office. This include:

* A representative office is not subject to income tax.
* An organization with Thai representative office is not subject to the work permit restrictions (1 foreign worker against 4 Thai workers). It can support multiple (2 to 5) work permits.

Setting a representative office in Thailand entails a complex legal process. If you are interested in setting a representative office in Thailand and want to understand the proper way to do so, get in touch with us. Our legal experts can guide you successfully through the legal processes. Get in touch with us today. Call us at +66 26260277 or write to us at

Tags : benefits representative office, formation representative office, representative office Thailand, Thailand representative office, Thailand representative office registration,
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