Regional Office Services
What is a Regional Office?
A Regional Office is a popular investment format in Thailand for multinational companies seeking to establish operational bases in Southeast Asia. Regional Offices in Thailand cannot generate direct revenue within Thailand but serve as coordination centers overseeing company operations in various countries throughout the region.
Regional Offices receive special benefits from the Thai government, including exemptions from certain foreign business restrictions and special privileges for visas and work permits for foreign employees.
Establishing a Regional Office in Thailand
Establishing a Regional Office in Thailand is an excellent choice for foreign companies wanting to establish a base in Southeast Asia, offering numerous advantages.
Advantages of Establishing a Regional Office
Operational Flexibility – Ability to conduct a wide range of activities related to supporting affiliated companies in the region
Tax Exemptions – Foreign-sourced income is exempt from corporate income tax in Thailand
Machinery and Material Imports – Exemption from import duties for machinery and materials used in the office
Visa and Work Permit Benefits – Simplified procedures for obtaining visas and work permits for foreign employees
Strategic Location – Thailand’s strategic position within the ASEAN region
Permitted Activities
Regional Offices in Thailand can only conduct activities within a specific scope, including:
Coordination and Supervision – Coordinating and supervising operations of affiliated companies in the region
Advisory and Management Services – Providing consulting and management services to affiliated companies
Training and Personnel Development – Organizing training and personnel development for affiliated companies
Research and Development – Conducting research and development of products and services
Testing and Quality Control – Testing and quality control of products
Sourcing of Raw Materials and Components – Sourcing raw materials and components for affiliated companies
Technical Support – Providing technical support to affiliated companies
Qualifications for Establishing a Regional Office
To establish a Regional Office in Thailand, the following qualifications are required:
The foreign company must have been established for at least 3 years
Must have paid-up capital of not less than 10 million baht
Must have affiliated companies or operations in at least one country other than Thailand
Must have a clear operational plan for the Regional Office
Steps for Establishing a Regional Office
Document Preparation
Certificate of incorporation of the parent company
Memorandum and Articles of Association of the parent company
Financial statements of the parent company for the past 3 years
Power of Attorney for the representative in Thailand
Operational plan for the Regional Office
Application Submission
Submit application to the Department of Business Development, Ministry of Commerce
Pay the application fee
Approval Consideration
The application will be reviewed by the Foreign Business Committee
The review process takes approximately 60-90 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 Regional Office
Transfer funds into Thailand
Thai Visa Legal Services
Thai Visa Legal has extensive experience and expertise in establishing Regional Offices in Thailand, offering comprehensive services:
Analysis and Planning – Analyzing the suitability of establishing a Regional Office and strategic planning
Document Preparation – Preparing all necessary documents, including translation and certification
Application Submission – Filing applications with relevant authorities
Progress Tracking – Monitoring application status and coordinating with government agencies
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
Personnel Recruitment – Assisting in recruiting and hiring suitable personnel
Foreign Business License Application Services
Although Regional Offices are exempt from certain restrictions under the Foreign Business Act, they still need to obtain a Foreign Business License for activities within the scope of the Regional Office.
Type of License
Regional Offices in Thailand need to obtain a license under Section 12 of the Foreign Business Act B.E. 2542 (1999).
License Application Process
Activity Analysis – Analyzing the activities the Regional Office intends to conduct
Document Preparation – Preparing application documents such as operation plans, organizational structure, and financial information
Application Submission – Submitting the license application to the Department of Business Development
Review – Application review by the Foreign Business Committee
Approval and License Issuance – Upon approval, the Department of Business Development will issue the license
Financial Requirements
Regional Offices must transfer a minimum of 3 million baht per year into Thailand for operations and maintain a minimum capital of 5 million baht in Thailand.
Thai Visa Legal Services
Thai Visa Legal specializes in obtaining Foreign Business Licenses for Regional Offices:
Activity Analysis – Analyzing and advising on permissible activities
Business Plan Development – Creating effective business plans and operational strategies
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
Problem Solving – Providing advice and solutions for issues that may arise during the process
Regulatory and Compliance Consulting Services
Operating a Regional Office in Thailand involves specific requirements and limitations that must be adhered to. Receiving expert consultation helps ensure smooth and legally compliant operations.
Key Requirements for Regional Offices
Revenue Generation Restrictions
Regional Offices cannot generate revenue from selling goods or providing services in Thailand
All expenses must be funded by the parent company or affiliated companies abroad
Employee Requirements
Must employ at least one Thai employee for each foreign employee
Must have a development and training plan for Thai employees
Reporting Requirements
Must prepare and submit annual operation reports
Must report significant changes to the Department of Business Development
Office Location Requirements
Must have a suitable and legally compliant office location
Must have sufficient space for conducting authorized activities
Activity Limitations
Regional Offices in Thailand cannot conduct the following activities:
Buying and selling goods in Thailand
Providing services to individuals or legal entities in Thailand (except affiliated companies)
Manufacturing products in Thailand
Conducting activities beyond the authorized scope
Thai Visa Legal Consulting Services
Thai Visa Legal has a team of legal consultants and experts experienced in providing advice on requirements and limitations for Regional Offices:
Business Structure Consulting – Advising on appropriate business structures
Activity Scope Consulting – Advising on activities that can and cannot be conducted
Employment Consulting – Advising on employment requirements and visa and work permit applications
Financial Consulting – Advising on international fund transfers and financial management
Tax Consulting – Advising on tax planning and compliance with tax requirements
Legal Updates – Notifying of changes in laws or regulations that may affect operations
Operational Reporting Services
Regional Offices in Thailand are required to prepare and submit operational reports to relevant authorities regularly. Failure to comply with reporting requirements may result in license revocation.
Types of Reports
Annual Operation Report
Report on activities conducted during the year
Report on the number of employees and personnel development
Report on operational expenses
Submit to the Department of Business Development within 30 days after the license anniversary
Annual Financial Statements
Financial statements audited by a certified auditor
Auditor’s report
Notes to financial statements
Submit to the Department of Business Development within 5 months after the end of the fiscal year
Tax Reports
Corporate Income Tax Return (PND 50)
Mid-Year Corporate Income Tax Return (PND 51)
Withholding Tax Returns (PND 1, 3, 53)
Value Added Tax Return (PP 30)
Submit according to the deadline for each type of tax
Change Reports
Report changes in address or office location
Report changes in responsible persons or authorized persons
Report changes in activity scope
Submit within 15 days of the change
Thai Visa Legal Services
Thai Visa Legal offers comprehensive operational reporting services for Regional Offices:
Annual Report Preparation – Preparing annual operation reports as required
Financial Statement Preparation – Preparing and auditing financial statements by certified auditors
Tax Filing – Preparing and filing various tax returns
Change Report Preparation – Preparing reports on various changes
Deadline Tracking – Monitoring and notifying of deadlines for submitting reports and documents
Coordination – Liaising with relevant government agencies
Accuracy Verification – Verifying the accuracy of reports and documents before submission
Benefits of Using Reporting Services
Accuracy – Reports are accurate and compliant with requirements
Timeliness – Reports are submitted within deadlines
Completeness – Reports contain all required information
Risk Reduction – Reduced risk of license revocation or penalties
Time and Resource Savings – No need to allocate internal resources for report management
Why Choose Thai Visa Legal?
Establishing and operating a Regional Office in Thailand is a complex process that requires specialized expertise. Thai Visa Legal is the best choice for Regional Office services for the following reasons:
Extensive Experience – Over 15 years of experience in establishing and operating Regional Offices
Professional Team – A team of lawyers, accountants, and tax experts with specialized knowledge
Comprehensive Services – Services covering every step from planning and establishment 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 practices
High Success Rate – Consistent track record of successful Regional Office establishments
Up-to-date Knowledge – Regular monitoring of changes in laws and regulations
Contact Us
If you are considering establishing a Regional Office in Thailand, or need advice regarding the operations of an existing Regional Office, 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)