Trade Support

In support of the government’s policy to develop Thailand as a regional center for trade and investment, in April 1996, the Board of Investment announced the establishment of trade and investment support offices would become a new category of activities eligible for investment promotion.

Activities in this category include, but go far beyond, regional offices. The activities covered are quite broad, ranging from engineering, testing and training services to consulting services, as well as from wholesaling and retailing of machinery to provision of training and installation, maintenance and repairing of machinery, tools, engines, and equipment.

Projects in this category are eligible for BOI non-tax incentives, including:

• Permission to own land for an office
• Permission to bring in foreign nationals to undertake investment feasibility studies
• Permission to bring in as many foreign technicians and experts as required
• Permission to take or remit foreign currency abroad
• No limit on number if shares owned by foreigners.

The range of activities eligible for promotion are:

• Controlling and advising affiliated companies
• All types of consulting services, except those engaged in:

* – Buying and selling securities
* – Foreign currency exchange
* – Accounting
* – Advertising
* – Legal affairs
* – Architecture
* – Civil engineering.

Exceptions may be granted by permission from the Department of Commercial Registration or concerned government agencies.

* Information services related to sourcing and procurement, but not brokerages or agencies
* Engineering and technical services, except these related to architecture and civil engineering
* Testing and certifying standards of products, production and services standards
* Exporting of all types of products
* Wholesaling of all types of products within the country, excluding local agricultural products, arts and crafts, antiques, and natural resources
* Provision of training on the use of machinery, engines, tools and equipment.
* Installation, maintenance, and repairing of machinery, engines, tools, and equipment
* Calibration of machinery, engines, tools, and equipment
* Computer software design and development.

If there are any other activities deemed appropriate for investment promotion under the Establishment of Trade and Investment Support Offices, the Office of the Board of Investment will consider them on a case-by-case basis.

Eligibility for regional trade and investment support offices

Applicants must be either companies established under Thai law, or companies planning to establish under Thai law.
Conditions for regional trade and investment support offices

* Operating licenses must have been acquired from all relevant government agencies
* Operating expenses must amount to no less than 10 million baht per year, which shall consist of sales and administrative expenses, as set forth in the Revenue Code
* Operating plans must be approved by the Board of Investment
* Majority or total foreign ownership is allowed
* Non-tax privileges, only, will be granted.You may wish to open a branch office in Thailand, a full trading entity, 100% owned by the mother company.

The approval process takes approximately 2 to 6 months, and the criteria for approval are similar to the Representative Office option described above.