Representative Office Services
What is a Representative Office?
A Representative Office is one of the investment formats for foreign companies in Thailand that is permitted to conduct certain activities to support the parent company abroad without generating revenue in Thailand. A Representative Office does not have a separate legal entity status in Thailand but is considered a part of the foreign parent company.
Representative Offices are suitable for foreign companies looking to explore the Thai market or wanting to have a representative in Thailand to coordinate with customers or distributors, but not yet ready for a higher level of investment.
Establishing a Representative Office in Thailand
Establishing a Representative Office in Thailand is a relatively straightforward process, but there are specific details and requirements that foreign entrepreneurs should be aware of.
Advantages of Establishing a Representative Office
Low Establishment Costs – Requires less investment than establishing a company or branch office
Simple Establishment Process – Has clear steps and takes less time
Market Research – Allows for studying the Thai market and business opportunities
Relationship Building – Enables building and maintaining relationships with business partners in Thailand
Operational Flexibility – Offers flexibility in conducting permitted activities
Visa and Work Permit Benefits – Provides convenience in obtaining visas and work permits for foreign employees
Activities Permitted for Representative Offices
Representative Offices in Thailand are permitted to conduct the following activities:
Sourcing Goods – Finding sources of goods or services in Thailand for the parent company’s production
Quality and Quantity Check – Checking and controlling the quality and quantity of goods the parent company purchases or has manufactured in Thailand
Advisory Services – Providing advice on various aspects of products the parent company sells to distributors or users in Thailand
Information Dissemination – Disseminating information about the parent company’s new products or services
Business Movement Reporting – Reporting business movements in Thailand to the parent company
Investment Opportunity Reporting – Reporting on investment activities and opportunities in Thailand
Activities Not Permitted for Representative Offices
Representative Offices are not permitted to conduct the following activities:
Buying and Selling Goods – Buying or selling goods on behalf of themselves or the parent company
Commercial Services – Providing services for remuneration to others
Manufacturing Products – Conducting any manufacturing operations
Signing Contracts – Signing purchase, sales, or service contracts in their own name
Generating Revenue – Conducting activities that generate revenue in Thailand
Representative Office Establishment Process
Document Preparation
Certificate of incorporation of the parent company
Memorandum and Articles of Association of the parent company
Financial statements of the parent company
Power of Attorney for the representative in Thailand
Document detailing activities the Representative Office will conduct in Thailand
Permission Application
Submit application for permission to establish a Representative Office to the Department of Business Development, Ministry of Commerce
Pay the application fee
Approval Consideration
The application will be considered by the Foreign Business Committee
The consideration process takes approximately 60 days
Tax Registration
Register for Value Added Tax (VAT) with the Revenue Department
Obtain a Tax Identification Number
Bank Account Opening
Open a bank account in the name of the Representative Office
Transfer funds into Thailand
Office Space
Find office space and sign a lease agreement
Register the address with relevant authorities
Visa and Work Permit Application
Process visa and work permit applications for foreign employees
Financial Requirements
Representative Offices in Thailand must bring in funds of at least 3 million baht per year for operations. These funds must come from the parent company abroad and be used to cover all operating expenses of the Representative Office.
Thai Visa Legal Services
Thai Visa Legal offers comprehensive services for establishing Representative Offices in Thailand:
Analysis and Planning – Analyzing the suitability of establishing a Representative Office compared to other investment formats
Document Preparation – Preparing all necessary documents, including translation and certification
Permission Application – Filing permission applications and tracking status with relevant authorities
Tax Registration – Handling tax registration and obtaining a Tax Identification Number
Bank Account Opening – Assisting with bank account opening and fund transfers
Office Space – Providing advice and assistance in finding suitable office locations
Visa and Work Permit Application – Processing visa and work permit applications for foreign employees
Foreign Business License Application Services
Representative Offices in Thailand are considered foreign business operations under the Foreign Business Act B.E. 2542 (1999) and therefore require a Foreign Business License before commencing activities.
Type of License
Representative Offices in Thailand need to obtain a license under Section 17 of the Foreign Business Act B.E. 2542 (1999), which covers businesses in List 3 (21) “Other Service Businesses.”
License Application Process
Document Preparation
Foreign Business License application form (Form Tor.7)
Project details and operation plan
Technology transfer plan (if applicable)
Power of Attorney
Other documents as required by the Department of Business Development
Application Submission
Submit application to the Department of Business Development, Ministry of Commerce
Pay the application fee
Consideration
The application will be considered by the Foreign Business Committee
The consideration process takes approximately 60 days
Approval and License Issuance
Upon approval, the Department of Business Development will issue the license
Pay the license fee
Specific Requirements
The license is valid for 5 years and can be renewed
Must submit an annual operation report to the Department of Business Development
Must comply with the conditions specified in the license
Thai Visa Legal Services
Thai Visa Legal specializes in obtaining Foreign Business Licenses for Representative Offices:
Activity Analysis – Analyzing and advising on activities the Representative Office can conduct
Document Preparation – Preparing all required application documents
Application Submission – Filing applications and coordinating with relevant authorities
Progress Tracking – Monitoring application status and providing updates to clients
Interview Preparation – Preparing for committee interviews (if required)
Problem Solving – Providing advice and solutions for issues that may arise during the process
License Renewal – Handling license renewals when due
Annual Reporting Services for Representative Offices
Representative Offices in Thailand are required to prepare and submit various reports as required by law. Failure to comply with requirements may result in license revocation or non-renewal.
Required Reports
Annual Operation Report
Report on activities conducted during the year
Report on the number of employees and personnel development
Report on funds brought in for operations
Submit to the Department of Business Development within 30 days after the license anniversary
Annual Financial Statements
Statement of financial position
Profit and loss statement
Notes to financial statements
Auditor’s report
Submit to the Department of Business Development within 5 months after the end of the fiscal year
Tax Filing
Corporate Income Tax Return (PND 50) – File within 150 days after the end of the fiscal year
Withholding Tax Returns (PND 1, 3, 53) – File by the 7th of the following month
Value Added Tax Return (PP 30) – File by the 15th of the following month
Change Reports
Report changes in name, address, or other important information
Report changes in representative or responsible person in Thailand
Submit within 15 days of the change
Thai Visa Legal Services
Thai Visa Legal offers comprehensive annual reporting services for Representative Offices:
Operation Report Preparation – Preparing annual operation reports in the required format
Financial Statement Preparation – Preparing and auditing financial statements by certified auditors
Tax Filing – Preparing and filing various tax returns
Change Reporting – Preparing and filing reports on various changes
Deadline Tracking – Monitoring and notifying of deadlines for report and document submissions
Coordination – Liaising with relevant government agencies
Accuracy Verification – Verifying the accuracy of reports and documents before submission
Importance of Accurate Reporting
Accurate and timely reporting is crucial for Representative Offices in Thailand because:
It helps maintain status and Foreign Business License
It prevents fines or penalties from regulatory authorities
It builds credibility for the Representative Office in the eyes of government agencies
It aids in tracking and analyzing operations for reporting to the parent company
Operation Limitations Consulting Services
Representative Offices in Thailand have several operational limitations that must be strictly adhered to. Failure to comply with limitations may result in license revocation or legal prosecution.
Key Operational Limitations
Revenue Generation Limitations
Representative Offices cannot generate revenue from activities in Thailand
All expenses must be funded by the parent company
Activity Limitations
Representative Offices can only conduct activities specified in the license
Cannot buy or sell goods or provide commercial services
Contract Limitations
Cannot sign purchase, sales, or service contracts in their own name
Contracts related to sales must be executed by the parent company
Advertising Limitations
Advertising or public relations must be solely to disseminate information about the parent company
Cannot advertise for commercial purposes in Thailand
Employee Limitations
Limited number of foreign employees eligible for visas and work permits
Must employ Thai staff according to specified ratios
Thai Visa Legal Consulting Services
Thai Visa Legal has a team of legal consultants and experts in foreign business operations ready to provide advice on Representative Office operational limitations:
Activity Scope Consulting – Advising on activities that can and cannot be conducted
Legal Compliance Consulting – Advising on compliance with relevant laws and regulations
Financial Consulting – Advising on financial management and fund transfers from the parent company
Tax Consulting – Advising on tax planning and compliance with tax requirements
Employment Consulting – Advising on employment, visas, and work permits
Proper Practice Consulting – Advising on appropriate practices in conducting activities
Legal Updates – Notifying of changes in relevant laws or regulations
Problem Solving and Risk Management
Thai Visa Legal not only provides advice on operational limitations but also helps solve problems and manage risks that may arise:
Risk Assessment – Assessing and identifying risks that may arise from Representative Office operations
Solution Development – Developing solutions for issues that may arise from operational limitations
Government Agency Coordination – Coordinating with government agencies to resolve issues or provide clarification
Business Format Adjustment – Advising on business format adjustments if Representative Office limitations no longer align with future business plans
Transitioning from a Representative Office to a Legal Entity
As business grows and there is a need to expand operations in Thailand, transitioning from a Representative Office to a full legal entity may be an appropriate option. Thai Visa Legal can provide consultation and assistance in this process:
Transition Timing Analysis – Analyzing when it is appropriate to transition from a Representative Office to a legal entity
Legal Entity Format Selection – Advising on the most suitable legal entity format (e.g., limited company, branch office)
Transition Planning – Planning the steps and timeline for the transition
Registration Processing – Handling the registration of the new legal entity and terminating the Representative Office
Why Choose Thai Visa Legal?
Thai Visa Legal is the ideal choice for foreign companies looking to establish a Representative Office in Thailand for the following reasons:
Specialized Expertise – Specialized expertise in establishing and operating Representative Offices in Thailand
Extensive Experience – Over 15 years of experience providing Representative Office services
Professional Team – A team of lawyers, accountants, and tax experts with specialized knowledge
Comprehensive Services – Services covering every step from establishment and licensing to day-to-day operations
Extensive Network – Network and good relationships with relevant government agencies and organizations
Multilingual Communication – Communication in multiple languages, including English, Chinese, Japanese, and others
Understanding of International Business – Understanding of cultural differences and international business operations
Contact Us
If you are a foreign company considering establishing a Representative Office in Thailand, or already have a Representative Office and need assistance with operations, contact Thai Visa Legal today for a free consultation!
Phone: 080-765-6400
Email: info@thaivisalegal.com
Website: www.thaivisalegal.com
Office: 83 Sukhumvit 93, Bangchak, Prakanong, Bangkok 10260 Thailand
Business Hours:
Monday – Friday: 9:00 AM – 6:00 PM
(English, Chinese, and Japanese interpreters available)