A representative office is a form of business organization for foreign companies who wants to establish their business in Thailand. Establishing a representative office is fast, easy and helps companies to analyze the market potential and opportunities.
This form of business does not require a Foreign Business License to operate. However, a representative office is limited and one of the main limits is that the structure is not allowed to invoice in Thailand.
A representative office is limited to:
- Sourcing of goods or services in Thailand for the Head Office,
- Checking and controlling the quality and quantity of goods purchased or hired to manufacture in Thailand by the head office,
- Giving advice concerning goods of the head office sold to agents or consumers,
- Propagation of information concerning new goods or services of the head office,
- Report on business trends in Thailand to the head office.
A representative office has to meet the following criteria:
- Non-revenue generating activities,
- No authority to accept purchasing order to make offer for selling or to negotiate for carrying out of business with person or juristic person in the country in which it is established,
- All expenditures incurred by the representative office must be borne by the head office,
Minimum investment Capital is 3 million thb.
A representative office must have 1 authorize person who responsible all of the operation in Thailand.
A representative Office has a duty to submit audit report to government agency and tax bureau every year.
- Preparation of Required Documents
The client must prepare 1) the parent company affidavit showing company name, objective, directorship, and capital, and 2) power of attorney notarize from the country of origin and translated in Thai.
- Submission of Documents
When the application forms complete, the client must sign on the application form and supporting documents to submit to the government agency.
- Get Certificate
After the government agency review the application form and documents, they will issue a certificate to gain registration number and certified rights to operate in Thailand.
- Invest Money in Thailand
When the certificate issue, the client must open a bank account and transfer the investment money to Thailand.
Visa and Work Permit condition
A representative Office required 1 Thai persons per 1 Foreigner, in general, the work permit is up to 2 work permits per 1 representative office.