Most foreign investors and companies in Thailand who would like to setup a 100% foreign owned business in Thailand most times resort to establishing a Thai representative office to represent its head office overseas.
Note however that a representative office in Thailand is not allowed to engage in any trading activities in Thailand hence it cannot earn an income in the country. If you wish to engage in trading activities then you will have to consider registering a Thai company. Speak to one of our attorneys about this process.
A Thai representative office established in Thailand should engage in at least one of the following functions:
- • Search for services or good in Thailand for their headquarters overseas;
- • Check on the quantity and quality of the product being ordered by the headquarters;
- • Provide advice to the headquarters about the services or goods to order or ordered;
- • Supply the information of the headquarters’ products to the customers in Thailand
- • Report the economic movement in Thailand to the headquarters
An Alien Business License needs to be secured first prior to setting up a Thai representative Office. Following the successful license application, the following documents (which must be notarized at the Notary Public before being submitted to the Commercial Registrar) are necessary for the actual setting up of the representative office:
- • Alien Business License
- • Company affidavit which includes company’s name, registration number, date of registration, address, and what jurisdiction the company is registered under.
- • List of the company’s directors including their names, addresses, nationalities, ages, races, number of shares held, and information on which directors have the power to bind the company,
- • The company’s Articles of Incorporation or Memorandum of Association (copy),
- • The company’s Articles of Association (copy),
- • An report of the company’s capital, the number of shares along with the par value of each, and the amount of capital stock that has been paid up. Note that the amount of capital assigned to the Representative Office must be 5 million baht for a period of five years with 2 million baht allocated on the first year,
- • List of the company’s shareholders, their nationalities and number of shares that each holds,
- • Any documents/certificates/papers proving that the Representative Office’s manager will have sufficient power of attorney to run the company (if the manager is a foreign citizen then a copy of the manager’s passport must also be provided and if the manager is Thai then a copy of his or her national ID and household registration must be provided.)
Important miscellaneous documents (must be notarized at the Notary Public before being submitted to the Commercial Registrar) required to fully process the application:
- • A precise description of the company’s objectives in Thailand
- • Justification why the necessity of setting up the office in Thailand
- • A projection of the office’s contribution on the Thai economy and society
- • Translation into Thai of the company’s financial report (last three years)
- • Employees list ( to work at the office) which includes names and salaries
- • An estimate of the Office’s expenses for the next three years
- • List and descriptions of the machinery and equipments to be used at the Office.