Branch Office Setup

in Thailand

The multinational companies wishing to operate their business in Thailand might not want to establish company limited. They may instead want to function their business through a branch office located in Thailand. Although the structure of the branch office under Thai law is similar to Thai company limited, it still be governed by the Foreign Business Act B.E. 2542 (FBA). That means there is no requirement of multinational companies to establish a branch office in Thailand, but in the case that the activities of the branch office fall into one of the categories under the FBA, it is definitely required for a Foreign Business License (FBL).

Unlike the representative Offices and Regional Offices, Branch Offices under Thai law are not limited to the “non-trading” activities. They are allowed to earn income. The Branch Office’s liabilities arising from the action of the business in Thailand will not be limited within Thailand but extend to the head office oversea.

According to the approval of a Foreign Business License, the capitalization will be calculated from at least 25 percent of average estimated expenses for first 3 year but not less than 3 million baht.

For any further detail, please contact professional Thai lawyers who could provide you with the guidance regarding business establishment.

See also:
	Thai Limited Company
	Thai Partnership
	Thai Representative Office
	Thai Work Permit
	US Amity Treaty
	Regional Office Setup
	Thai Company Registration
	Company Mergers
	Thai Association Setup
	Thailand Tax