A transnational corporation can open a regional office in Thailand. A transnational corporation is defined as a legal entity operating in multiple countries. To open a regional office in Thailand, it is mandatory to have at least one branch or subsidiary in Asia.
Like a foreign company representative office, a regional office is not entitled to engage in profit-making activities. A regional office can only provide services to branches and enterprises owned by the company that established it and is not entitled to provide any services to other parties.
A regional office can engage in the following activities:
- Management of branches and subsidiaries located in the region
- Providing consulting and management services
- Communication, coordination, and management on behalf of the head office
- Training and personnel development services
- Financial management
- Marketing management and sales development planning
- Product development
- Research and development services
Within five years after the registration of the regional office, at least 5 million baht must be invested. In the first year of operation, at least 2 million baht must be invested, and at least 1 million each subsequent year, until the amount of 5 million is reached.
At least one person responsible for managing the regional office must reside in Thailand.
The regional office can hire foreigners, with the requirement of one Thai employee for every work permit issued.
Questions about setting up a regional office in Thailand? Email me or use the form below
Photo by Ryutaro Uozumi on Unsplash