Representative Office in Thailand

Table of Contents

Opening Representative Office in Thailand

A foreign legal entity can open its representative office in Thailand with the primary function of providing
information and assistance to its foreign head office.. According to the Regulation of the Office of the Prime Minister BE 2529 (AD 1986), a representative office is defined as “an office of a foreign company located in Thailand that operates in international trade.”

Since 2017, opening a representative office does not require a foreign business license.

Permitted Operations of a Thai Representative Office

A representative office is not entitled to engage in profit-making activities. It can solely carry out the following activities:

Sourcing goods and services in Thailand for its head office.
Quality and quantity control of goods purchased in Thailand by the head office.
Consulting Thai clients and/or agents about products sold by the head office in Thailand.
Informing (potential) clients in Thailand about new products and services offered by the head office.
Preparing reports for the head office on business trends in Thailand.

Capital Requirements

The minimum capital for a representative office is 2 million baht (≈ USD 60,000).
In the case of obtaining work permits, the minimum capital is 3 million baht (≈ USD 90,000).

If the representative office operates for less than three years, the entire capital must be invested within six months after receiving the registration number. If the office is to operate for more than three years, the capital must be invested as follows:

At least 500,000 baht within the first three months after registration.
At least 500,000 baht by the end of the first year.
At least 500,000 baht by the end of the second year.
The remaining part by the end of the third year.

The capital of the representative office can be used to cover operational expenses (rent, salaries, transportation costs, etc.).

Establishing the Representative Office

A foreign company opening a representative office must notify the Department of Business Development (DBD) and obtain a registration number, requiring several documents from the head office.

Reporting

The representative office must maintain accounting records and submit auditor-confirmed reports.

Work Permits

The representative office can employ two foreigners. For each work permit, one Thai employee is required, which is an advantage compared to the standard rule for companies (four Thais per one work permit).

This allows the representative office to be considered a solution for long-term residence in Thailand with the issuance of a work permit, in cases where there is no need to generate profit directly in Thailand.