Thai Representative Office
Setting Up of Representative Office in Thailand
Certain conditions apply to those Thai representative offices which require a Foreign Business License. It is important to clarify beforehand what constitutes income and subject to Thai taxes.
The Representative Office in Thailand is not allowed to operate any trading activity or earn any income by billing or invoicing clients and must depend entirely on the head office for its capitalization.
A Representative Office is limited to the following non-trading activities:
- Reporting on business movement in Thailand
- Providing advice related to products that are being sold to distributors or customers
- Sourcing goods and services in Thailand for the headquarters overseas
- Inspecting and controlling the quality and quantity of goods purchased or ordered to be manufactured in Thailand
- Introducing information regarding new products or services
For the Representative Office, there will need to be a Letter of Appointment signed by the Director of the foreign entity appointing a local manager. The manager of the Representative Office will then be the only person required to sign to certify the correctness of all the documents before submission of the application.
The Timeframe for Application
Once the application is filed, the officer can take up to 2 weeks to 1 month to approve an application. Approval will be dependent on Ministerial discretion.
To fully understand the conditions which pertain to a Representative Office in Thailand, contact any of our Thai lawyers or any of our foreign lawyers to provide you with guidance when considering to open a representative office in Thailand.
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