Representative Office in Thailand

Setting Up Representative Office in Thailand

Before you set up a representative office in Thailand, you must know the requirements for the establishment of such a business. This article will help you understand the documents required for the establishment of a representative office, what kind of activities are allowed and how to get a business license in Thailand.

Required Documents for Representative Office

If you wish to establish a representative office in Thailand, you must meet legal requirements. In order to do this, you will need to prove the legality of your company by providing evidence of its juristic person status. This should include its capital, list of directors, and authorized signatories. You must also provide a letter appointing a representative who will act on your behalf. For foreigners, you must also supply a copy of the representative’s passport, which must bear the most recent immigration stamp.

Having a representative office in Thailand is different from opening a branch or a company limited. A representative office does not earn any income from its activities in Thailand, but it can advise the head office on trends in the Thai market and find suppliers and services that the head office cannot access. A representative office in Thailand can help a foreign company expand its business by acting as a liaison between the head office and the local market. Creating a representative office in Thailand can be a complex process, especially if your company is not familiar with the country’s laws. If you are unsure of how to go about the process, a Thai law firm can help you.

Activities Allowed for Representative Office

If you are setting up a Representative Office in Thailand, you must be aware of the legal requirements to operate in the country. Representative Offices are permitted to carry out limited business activities but cannot earn a profit. For example, they cannot make purchases on behalf of the head office and cannot render any services to Thai citizens. They are not allowed to earn corporate income and cannot incur expenses unless the head office pays them.

In order to open a Representative Office in Thailand, you must invest a certain amount of capital. It is recommended to invest a minimum of two million Thai baht. This will cover the capital needed for the first three years of operations. Then, you should invest a further twenty-five percent of the required registered capital.

Obtaining a Business License in Thailand

If you’re planning to set up a representative office in Thailand, you’ll need to obtain a business license before you start operating. The licensing process is quite simple, but there are some requirements that you should meet. The first is to meet the minimum share capital requirements. You’ll need to remit a minimum of two percent of your capital to the Thai government within six months. After that, you’ll need to fill out an application form in Thai, preferably in print, and sign your name.

A representative office in Thailand is a limited-sized company that has limited business activities. It’s not allowed to earn revenue, but it can provide important support for the head office. Representative offices are only permitted to conduct five activities.

Limitations of a Representative Office

A representative office in Thailand has a limited set of legal obligations. The office cannot carry out trading activities or earn revenue from billing clients. Instead, it must rely on the capital and support provided by its head office. It can only carry out certain activities and report back to the head office on these activities and their implications.

A Representative Office can only carry out five specific business activities. These include providing information about a product or service to a distributor or customer. It does not have the authority to accept purchasing orders or to negotiate for carrying out business with a foreign person. In addition, the head office must bear the expenses of a Representative Office. Further, a Representative Office in Thailand does not pay corporate income tax.

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