Date: August 12, 2026

Representative office, branch office or Thai subsidiary: which one do I need?

It depends on what you want your business to do in Thailand. A representative office cannot generate income, a branch office can carry on business as an extension of the foreign company, while a subsidiary is a separate Thai company that generally offers the greatest flexibility for long-term operations.

What We See In Practice

I just want to test the Thai market first. Do I really need to incorporate a company?

WHAT CLIENTS ASK US

Not always. Many foreign businesses initially assume they need a Thai company from day one, when in reality the best structure depends on their objectives. Some only need a presence for market research or quality control, while others intend to sign contracts, hire staff and generate revenue immediately.

The biggest difference between the three structures is what they are legally allowed to do. A representative office is limited to non-income-generating activities such as market research, sourcing suppliers, quality control and reporting back to its overseas head office. A branch office can carry on business in Thailand on behalf of the foreign company, although it remains legally the same entity as its overseas parent. A subsidiary, by contrast, is incorporated in Thailand as a separate legal entity, allowing it to trade, enter contracts, own assets and expand independently of the foreign parent.

In practice, the decision is usually driven by your long-term plans rather than the registration process itself. Businesses that only need a temporary presence or support function may find a representative office sufficient. Companies actively selling products or services in Thailand often require either a branch or, more commonly, a subsidiary because it provides greater operational flexibility, clearer separation of liability and is generally the structure preferred by investors planning to grow their Thai operations. Choosing the right structure at the outset can avoid costly restructuring later.

Author: Vincent Birot

Vincent Birot is a French-trained international business lawyer based in Bangkok. He holds a Master’s degree in International Business Law from La Sorbonne and an LL.M in International Commercial Law from the University of Exeter (UK), and has passed the Paris Bar examination. He is the Founder of Belaws, a one-stop platform for legal and corporate matters, facilitating access to trusted legal and business professionals who deliver compliant, practical solutions aligned with local laws and on-the-ground realities. He has advised foreign investors for over 10 years on corporate structuring, BOI promotion, cross-border tax, and regulatory compliance in Thailand. He previously served as Vice President of the Franco-Thai Chamber of Commerce and is a founding member of French Tech Bangkok.