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Establish a Representative Office in Thailand

Foreign entrepreneurs are attracted by the idea of investing in Thailand, being one of the most complex economic countries in the world. Most common structures for registering foreign entities are branch, regional and representative offices. Particularly, representative offices are not required to pay corporate taxes and submit financial reports to the government. However, they cannot develop trading activities and cannot earn income in Thailand. In addition, negotiation, purchasing or sale actions are restricted. 

Functions of a representative office in Thailand

Working on behalf of a company’s head office overseas,  a Thai representative office can only perform activities such as: 
•    market research;
•    find suitable services and suppliers or 
•    record details about Thai market trends and economic movement. 
Also, it may give advice to headquarters on which services or goods to order, after the quality and quantity of the products (to be purchased or manufactured in Thailand) was verified. In order to find out more about these processes, our law firm in Thailand will provide proper information and guidance.

Requirements to set up a representative office in Thailand 

First of all, it is important to prove the necessity of opening the representative office in Thailand. Then, the objectives of the company in Thailand must be described and motivated. Another aspect of great importance is the contribution and influence the office will have on Thai economy and society. In addition, documents attesting financially the last three years of the company’s activity, a list with employees that will work at the representative office and an estimate on its expenses and equipments needed for the next three years – must be also attached. Our attorneys in Thailand will offer detailed information on the matter.

Application Process 

When setting up a representative office in Thailand, an Alien Business License must be obtained. Several documents that will be authenticated at the Notary Public (before being sent to the Commercial Registrar) will be necessary in order to complete the application. Some of them are: 
•    Company affidavit which includes company’s name, registration number, date of registration, the jurisdiction under which the company is registered, address; 
•    List of the company’s directors including detailed profiles and specific information related to their approach to the business;
•    Articles of Incorporation or Memorandum of Association;
•    Articles of Association.

For further information and assistance on the matter, please feel free to contact our lawyers in Thailand.