Establishing a representative office in Thailand is a simple process for foreign companies aiming to create a presence in the country without conducting profit-driven activities. Here’s a step-by-step guide based on the latest regulations as of April 10, 2025.
Step 1: Understand the Purpose and Limitations
A representative office in Thailand acts as an extension of a foreign company and is limited to non-revenue-generating activities. These activities include:
- Sourcing goods or services in Thailand for the head office.
- Inspecting and controlling the quality and quantity of goods purchased or manufactured in Thailand.
- Providing advice about goods or services sold by the head office.
- Disseminating information about new products or services.
- Reporting on business trends in Thailand to the head office.
The office cannot accept purchase orders, make sales, or negotiate business deals, and all expenses must be funded by the head office.
Step 2: Meet Eligibility Requirements
To establish a representative office:
- The foreign company (head office) must be a legally registered entity in its home country.
- The office must have a physical location in Thailand (e.g., leased office space).
- A manager or representative must be appointed to oversee operations. This person can be a Thai or foreign national, but if foreign, they must have legal permission to work in Thailand (e.g., a work permit and visa).
Step 3: Prepare Required Documents
You’ll need to gather and submit the following documents to the Department of Business Development (DBD) under the Ministry of Commerce:
- Application Form: Available from the DBD, to be signed by the appointed representative.
- Company Affidavit: A notarized document from the head office detailing its name, registration details, capital, objectives, directors, and registered address.
- Power of Attorney: A notarized letter appointing the representative to manage the office and register it with Thai authorities.
- Passport/ID of the Representative: For a foreign representative, include a copy of their passport and non-immigrant visa or entry stamp; for a Thai representative, provide their national ID and household registration.
- Office Address Proof: A lease agreement or proof of ownership for the office space, along with a map.
- Financial Details: An outline of estimated expenses for the first three years and the capital remittance plan.
All documents must be notarized and certified by a Thai embassy or consulate in the foreign company’s home country and should be no older than six months at the time of submission.
Step 4: Meet Capital Requirements
A minimum capital of 3 million THB is required to fund operations. The capital must be remitted from the head office into a Thai bank account according to this schedule:
- At least 25% (e.g., 500,000 THB) within the first 3 months of registration.
- Another 25% by the end of the first year.
- Another 25% by the end of the second year.
- The remaining 25% by the end of the third year.
If the office operates for less than three years, the full amount must be transferred within six months of registration.
Step 5: Submit the Application
File the completed application and documents with the Department of Business Development (DBD) in Bangkok or a Provincial Office of Business Development if outside Bangkok. The process typically takes 2–4 weeks for approval, depending on the completeness of the submission and ministerial discretion.
Step 6: Obtain Registration and Start Operations
Once approved, the DBD issues a certificate or registration number, allowing the representative office to begin operations. After this:
- Open a Thai bank account to receive the capital remittance.
- Register for a Corporate Tax Identification Number with the Revenue Department, even though the office is exempt from corporate income tax (tax obligations apply only to employee salaries or interest on funds).
Step 7: Hire Staff and Secure Work Permits (if needed)
The office can employ Thai and foreign staff. For foreign employees:
- A ratio of 1 Thai employee per 1 foreign employee is required to support a work permit.
- Typically, 2–5 work permits are allowed, with more possible if the office sources over 100 million THB in goods/services annually.
- Each foreign employee needs a non-immigrant B visa and a work permit, which your appointed representative can help process.
Additional Notes
- No Foreign Business License Required: Since 2017, a Foreign Business License (FBL) is no longer needed for a representative office, simplifying the setup process.
- Tax Compliance: While exempt from corporate income tax, the office must file annual tax returns and audited financial statements with the Revenue Department and DBD.
- Professional Assistance: Due to language barriers and bureaucratic nuances, many companies hire a local law firm or consultancy to streamline the process.
By following these steps, a foreign company can establish a representative office in Thailand efficiently, typically within a few weeks, to explore the market or support its head office’s operations without the complexities of a full business entity.
