A Representative Office, is responsible for certain non-expenditure activities that Representative offices can carry:
To source for goods or services in Thailand for the head office.
To check and control the quality and quantity of goods purchased or hired to manufacture in Thailand by the head office
To give advice concerning goods of the head office sold to agents or consumers.
The propagating of information concerning new goods or services of the head office.
To report on business trends in Thailand to the head office. The application fee for Representative office is 2,000THB. However, this may change, please check beforehand.
Requirement to open and register representative office in Thailand:
No specific Thai and foreign ownership
At least one agent must be present to settle in order to handle the day to day management.
Similarly to open branch office in Thailand, Minimum of 3 Million THB, to be used as investment not paid up capital per activity (please check “Branch Office”) (Link to Branch Office page)
Submission of taxes only limited to taxation of salaries paid to the employees of the representative offices (as representative does not derive an income.)
However, those activities go beyond which are listed and imply that the Representative office maybe liable for certain income and corporate taxes in which the head office is responsible for but the Representative office may incur such taxes.
For this reason, in order to be clear on such requirements and prerequisite for such a Representative office, it is imperative to contact a professional prior to any incorporation.
At Juslaws & Consult, our professional team of corporate lawyers who can support you with preparing, submission, registration and opening your Representative office in Thailand. We also provide advice on any and every corporate entity during the process of your business. If you are interested and would like to start your business in Thailand, it will be a pleasure for us to support you.