Branch Office

This is a 100%-foreign owned branch of an overseas Head Office (Branch: Trading; Representative: Non-trading). You operate normally as you would in the case of a limited company, but there are no shareholders, directors etc, as it is only a branch of a foreign Head Office, not a registered company. The advantage of this legal form is that there is no requirement to have a local shareholder. The disadvantage is the comparatively high establishment costs and time of incorporation. In addition, it is not an automatic process (unlike the registration of a limited company), but rather an application that will be considered by the committee on its merits (we have to show that your company will bring a number of benefits to Thailand such as transfer of technology etc.)

We can also help you establish a representative office, a non-trading legal entity. This entity is not permitted to sell or distribute any goods or services, or in any other way directly generate revenue in Thailand. The approval process may take anywhere from 2 to 6 months and depends to a large extent on the size, capital, and activities of the parent company, as well as the transfer of technologies and know-how, and other proposed benefits for Thai enterprises and individuals. We have successfully obtained many business permits in this category.

There is no special requirement for foreign companies to register their branches in order to do business in Thailand. However, most business activities fall within the scope of one or more laws or regulations, which require special registration, either before or after the commencement of activities. Foreign business establishment must, therefore, follow generally acceptable procedures. It is important to clarify beforehand what constitutes income subject to Thai tax because the Revenue Department may consider revenues directly earned by the foreign head office from sources within Thailand as subject to Thai taxes.

As a condition for approval of an Alien Business License to a branch of a foreign corporation, working capital amounting to a total of five million Baht in foreign exchange must be brought into Thailand within certain intervals over a five-year period.

The branch may be allowed to operate for a period of five years, unless a shorter period is indicated in the application as a result of a contract to be performed in Thailand. Extension of the original duration of the license to operate may be granted, provided the working capital required to be brought into Thailand is met.