What is a Representative Office? What are its Main Objectives ?

A Representative Office is a form of business presence in Thailand that does not aim to generate direct revenue, unlike subsidiaries or branches that operate for profit. Simply put, a Representative Office acts as the “eyes and ears” of the parent company in Thailand, handling tasks such as market research, coordination, and quality control. However, it is not allowed to issue invoices, sell products, or enter into commercial contracts. If the business later wishes to transition into a limited company, apply for BOI promotion, or obtain other business licenses, this can also be pursued in the future. 

Main Objectives of a Representative Office (as Permitted by Thai Law) A Representative Office in Thailand is allowed to carry out a maximum of five activities only, as follows: 

1. Sourcing information in Thailand for the head office located overseas. 
2. Providing advice concerning the products sold by the head office to agents or customers.
3. Reporting on market movements and business activities in Thailand to the head office.
4. Coordinating and following up on purchase orders from Thailand.
5. Inspecting the quality and quantity of products ordered by the head office from Thailand.

5 Types of Businesses Eligible to Establish a Representative Office in Thailand

1. Inspection and quality/quantity control services for products manufactured in Thailand under orders from the head office. 

2. Procurement services, including sourcing of products and services in Thailand for the head office overseas.

3. Providing advice on products and services of the head office to end-users and related service providers.

4. Marketing and public relations activities related to information and news concerning the products and services of the head office.

5. Reporting on business operations and relevant information in Thailand to the head office.

Basic Requirements for Establishing a Representative Office in Thailand

• The registered capital or establishment fund in Thailand must be at least 2 million Thai Baht.
• A Representative Office must appoint a foreign national as the head of the office (who can apply for a visa and work permit).
• No corporate income tax is required, as the office does not generate income. However, annual financial statements must still be submitted.

Application Process for Setting Up a Representative Office in Thailand

• Foreign companies wishing to establish a Representative Office in Thailand must apply for a business license under the Foreign Business Act B.E. 2542 (1999).
• You must submit an application to the Department of Business Development, Ministry of Commerce. 

Important Limitations of a Representative Office You Should Know! 

• It is not permitted to sell products or provide services within Thailand.
• Receiving any form of payment or issuing invoices in the name of the Representative Office is strictly prohibited.
• All expenses incurred must be fully funded by the head office (100% financial support). 
• There must be at least one local employee in Thailand and a foreign head of the Representative Office holding a valid work permit in compliance with Thai law. 

What Are the Advantages of Establishing a Branch Office in Thailand?

• No need to pay value-added tax (VAT) or corporate income tax.
• No requirement for a Thai partner when registering the business. 
• Simpler establishment process compared to a limited company.
• Ideal for “market testing” to study and gather information before expanding investment in Thailand. If ready, the business can later be converted into a limited company as the next step.

If you are seeking in-depth consultation from experts, feel free to contact us. We specialize in all types of company registration services, business operation licenses for foreign investors in Thailand, as well as Thai nationals looking to start a business. Whether you are a foreigner or a local entrepreneur, we can provide comprehensive, one-stop advisory services tailored to your needs. 

Why Choose Our Services? 

• We provide expert consulting services with experienced professionals, offering precise guidance to save you time in finding the answers you need.
• We assist with registering limited companies, other business entities in Thailand, and obtaining business operation licenses. Our team has successfully handled thousands of cases, with a high rate of repeat clients and referrals. 
• We offer comprehensive, one-stop business services. After company registration, we provide accounting and tax planning, recruitment services, visa and work permit applications for foreigners, as well as other essential services to support all aspects of your business operations. 
• We deliver services that are fast, complete, and legally accurate. 
• We provide dedicated personal consultants, offering prompt service and case-by-case support. 
• Our pricing is fair and reasonable for the quality of service provided.

Contact Us 

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• @fdigroup
• Phone : 02-642-6866, 02-642-6869, 02-642-6895
• E-mail : infojob@fdi.co.th
• Website : www.fdi.co.th