Belaws Home ›› Thailand ›› Incorporation ›› Representative Office
incorporation
Representative
Office
A Representative Office is a popular choice for foreign companies wishing to explore the Thai market or allow their head office to liaise with their business interests in Thailand.
One of the key benefits of a Representative Office is the reduced requirements for supporting a foreign employees Work Permit.
What is a Representative Office in Thailand?
Under Thai law, a Representative Office is an office established by a foreign company that is treated as the same entity of its parent company (this is not a separate entity from the head office unlike a limited company). As a consequence, the head office is liable for the action of the Representative Office in Thailand.
• Foreign ownership
100% owned by the parent company (head office)
• Minimum Capital Requirements
2 million Baht over 3 years (required immediately to support a work permit applications)
• Tax rate
Representative Offices are not subject to corporate income tax.
• Business Restrictions
Representative Offices are restricted to 5 business activities only. No income can be generated from these activities.
• Foreign Business License
Obtaining a Foreign Business License is not required.
• Hiring of Foreign employees
A ratio of 1 Thai employee per foreign employee hired is required to support a Work Permit.
Pricing
FROM
THB 40,000 *
+ 7% VAT
5 business days
(Average time from the moment
we receive complete information from you)
* + Starting price for simple matter (no VAT)
Application handled by a corporate expert.Scope of work
- Prepare and file documents with the Foreign Business Administration Office to set up a Representative Office. This includes collecting and collating the required documents from the parent company and preparing details relating to the planned structure of the Representative Office.
- Answering questions in relation to the Representative Office setup during this setup process.
- Advising you on the post registration duties to ensure a smooth business operation.
Need more?
Additional services that you may need as well
What is the process for registering a Representative Office?
Be prepared for registering your Representative Office with our comprehensive and free registration checklist.
Be prepared for registering your Representative Office
with our comprehensive and free registration checklist.
Collecting documents and filing the application
Our team of experts will collect, collate and fill in all the required documents, ready for your signature.
TIMELINE
A few days* to collect documents from the parent company and prepare the application (up to one-month* if English translation required).One day for filing the application.
Department of Business Development
Registration of the Representative Office
Our team of experts will file all the documents and application forms with the Department of Business Development.
TIMELINE
One day for filing the application5 business days to receive a 13-digit registration number
Department of Business Development
Post-registration requirements
Our team of experts can help you open a bank account and also assist with the timely remittance of the minimum capital requirements.
Our team of experts can also assist with obtaining any Work Permits and Visas which are required.
TIMELINE
2 to 3 weeks* to open the bank account2 weeks* to obtain a work permit
Frequently asked questions
What is a Representative Office?
Under Thai law, a Representative Office is an office established by a foreign company that is treated as the same entity of its parent company (this is not a separate entity from the head office unlike a limited company). As a consequence, the head office is liable for the action of the Representative Office in Thailand.
What are the advantages of a Representative Office in Thailand?
The main advantages of setting up a Representative Office in Thailand is the possibility to support one work permit per foreign employee with only one Thai employee (the ratio for a limited company is 4 Thai employees per foreign employee except if the company has obtained a promotion from the Board of Investment). The maximum number of foreign employees is usually 2 (it is sometimes possible to obtain several more work permits depending on the activity of the Representative Office).
As the Representative Office cannot generate income in Thailand, it is not subject to corporate income tax. However, the employees are still subject to the personal income withholding tax on their salaries.
To cope with the inability of the Representative Office to enter into commercial agreements and generate income, it is a common practice for foreign companies to set up an invoicing company in Singapore or a limited company in Thailand with a local partner to support its business activities in Thailand. Our market entry expert will advise you on the best entry strategy.
How to obtain a work permit for a Representative Office?
A distinction between the foreign director of the Representative Office and the other foreign employees of the Representative Office must be made following the Due to the abolition of the requirement to obtain a Foreign Business License a distinction must be made between the foreign director of the Representative Office and the other foreign employees.
Work Permit for the authorized director of a Representative Office
The foreign authorized director of a Representative Office must obtain a work permit unless the Representative Office holds a Foreign Business License. The process to obtain a Foreign Business License usually takes 4 to 6 months and requires a minimum investment of 3 Million Baht, which is higher than the 2 Million Baht required to obtain a work permit without a Foreign Business License.
Work Permit for the director and employees of a Representative Office
To support a Work Permit for a Representative Office in Thailand the following is required:
- A minimum Capital Investment of 2 Million Baht required
- One Thai employee must be hired.
Please note, that above only applies to 1 Work Permit. Each additional Work Permit required the above requirements as well i.e. 2 Work Permits = 4 Million THB and 2 Thai Employees.
Is a Representative Office allowed to generate any income?
A Representative Office is not allowed to generate any income nor enter into commercial agreements (on its own account or on behalf of the parent company). It can only sign the necessary documents for its operation in Thailand. The expenses of the Representative Office must be fully financed by its parent company.
What are the minimum investment requirements?
A minimum investment of 2 million Baht must be made within 3 years with minimum installments as follows:
- 25% within the first 3 months of registration;
- 25% within the first year;
- 25% within the second year; and
- 25% within the third year.
To hire a foreign employee, the 2 million Baht must be fully transferred into the Thai bank account of the Representative Office and one Thai employee is required to support the work permit. To hire a second foreigner, another 2 million Baht (a total of 4 million Baht) will have to be transferred.
Representative Office vs Thai Limited Company?
A Representative Office has the ratio of 1 Thai employee per foreign employee but its activities are limited and it cannot generate income while a Thai Limited Company with a local partner can carry out most business activities without any specific restrictions. The key differences are highlighted below:
| REPRESENTATIVE OFFICE | THAI LIMITED COMPANY | |
| Liability | No separate liability from the head office | Liability of the shareholders limited to the amount invested |
| Foreign ownership | Up to 100% | Limited to less than 50% in most activities |
| Thai to foreign employee ratio | 1:1 | 4:1 |
| Corporate income tax rate | No corporate income tax | 20% |
| Business restrictions | Restricted to the business for which investment promotion is granted; Limited to 5 activities. Cannot generate income. | No specific restriction if more than 50% of the capital is held by Thais shareholders |
| Reporting and audits | Annual accounting audit | Annual accounting audit |
| Timeline | 1 week | 1 week |
Explore other structures
Question Before You Begin? *
Question Before You Begin? *
Speak to our expert by scheduling afree call on how to set up a Representative Office in Thailand with Belaws.
(*) This Conversation is intended to provide basic answers to questions you may have about the Representative Office. But it is not a Lawyer’s Consultation.
The last 3 posts of our blog
Belaws Thailand
What is the current scope of regulations relating to Blockchain in Thailand today?
Thailand was one of the very first countries to regulate blockchain, how does the legislation look today?
Buying real estate in Thailand with crypto-currencies
Is it possible to use your crypto to buy a property in Thailand? In theory, yes, but in practice it depends.
Why choose Belaws?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed quis dui finibus, feugiat tellus suscipit, eleifend ante. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
+84 90 220 42 42We are open: Monday – Friday
9 am – 6 pm (UTC+7)
Belaws 2017 - 2023 | Belaws provides information and software only. Belaws is not a "lawyer referral service" and does not provide legal service or participate in any legal representation. Belaws is not a law firm or a substitute for an attorney or a law firm. The use of Belaws is subject to our Terms of Use.