Thai Regional Office Setup

Setting Up of Regional Office in Thailand

Regional offices are different from branch offices in terms of their structure. Regional offices, are not separate legal entities that perform their businesses in Thailand on behalf of its head office abroad. Likewise, they are limited to perform 7 specific activities only. These activities fall under List three of Foreign Business Act 1999 (FBA). These are:

• Communicating, coordinating and directing, on behalf of the head office
• The operation of branches and affiliates which are located in the region
• Providing services in consulting and management
• Training and personnel development
• Financial management
• Marketing control and sales promotion planning
• Product development
• Services in research and development

Regional offices are likewise required to apply for Foreign Business.Before beginning their activities in Thailand, foreign companies should have at least one active branch office or affiliate in Asia. Moreover, regional offices are also restricted from earning income, purchasing, selling, and negotiating. 

Capitalization rules under the FBA also apply to the regional offices. It must be at least 25 percent of the average estimated expenses for the first 3 year but not less than THB 3,000,000. Please feel free to contact Thai lawyers for the professional legal consultation and get more information about regional office establishment in Thailand.

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