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Entities: Representative, Regional and Branch Offices in Thailand

Written by Umpire Legal on . Posted in BLOG.

Are you an expat looking to test the waters before the dive? With the world getting more digital, we’re also going flexible! In the new normal age, why invest in a list of capital, assets, staffing, accommodation, and equipment when you are only on trial stage? If you are mainly operating elsewhere and need to explore the options in Thailand, there are two options we recommend you to consider, Representative Office and Regional Office.

Both these options are legal entities registered under a foreign law and the purpose of both are to act on behalf of its head offices overseas, study the market, and operate on a small scale in Thailand. These entities can operate limited activities. To simplify, we have covered each topic that you need to take into consideration: 

Legal Status 

Representative Office: This is a legal entity under Foreign Law and is considered the same legal entity as its head office. 

Regional Office: This is a legal entity under Foreign Law and is considered the same legal entity as its head office. 

Nature of Activity 

Representative Office: This type of entity cannot generate income. It can operate up to 5 activities. Operations must be reported to its head office.

Regional Office: This type of entity provides support to its affiliate in at least 1 country in the same region. It is a nonprofit type of business.

License to Operate 

Representative Office: Does not require a Foreign Business License but requires a 13-digit legal entity number from the Department of Business Development (DBD) under the Ministry of Commerce. 

Regional Office: Does not require a Foreign Business License but requires a 13-digit legal entity number from the Department of Business Development (DBD) under the Ministry of Commerce. 

Capital Requirement

Representative Office: A minimum of 2 million Thai baht according to the Foreign Business Act, 2542 B.E.

Regional Office: A minimum of 2 million Thai baht according to the Foreign Business Act, 2542 B.E.

There is also the option of opening a Branch Office, which is 100% foreign owned. This type of entity can generate profit. It is different from other company structures as there are no directors and no shareholders. The procedure for this takes time, requires approval, and the project submitted for review must also show how the business will benefit the country in financial or other terms. Also, the company must follow Thai laws and bring in a capital of 5 million baht within a five-year period and is allowed to operate for a period of 5 years.

After you have evaluated the suitability of your business and seeing which category it falls under to carry out your operations, you will still need to go through certain procedures, some papers, and unavoidable fees. Since the main purpose for these options is to save you time, allow us to handle it so you can have a smooth experience!