Representative Office

Under Thai Law, a foreign company can establish a limited presence by registering a representative office which can provide a useful stepping stone in testing the size of the Thai market before committing to establishing a registered company.

The function of a representative office is to liaise with and provide information and assistance to the foreign company. The representative office is expected to serve a support function only. It must not generate income as a result of its activities in Thailand nor execute any transaction involving the sale or purchase of products or services directly by the company.

Under government regulations, the business activities that a representative office can carry out are limited to at least one of the following 5 activities:

Source for goods or services in Thailand for the head office.
Checking and controlling the quality and quantity of goods purchased or hired for manufacture in Thailand by the head office.
Giving advice concerning goods from the head office sold to agents or consumers.
Propagation of information concerning new goods or services of the head office.
Report on business trends in Thailand to the head office.

General characteristics of a representative office are as follow:

Non revenue-generating activities.
No authority to accept purchasing orders or to make offers for selling or to negotiate for carrying out of business with person or juristic person in the country in which it is established.
All expenditure incurred by the representative office must be borne by the head office.
It is not subject to corporate income tax, in accordance with the Revenue Code with the exception that the deposit interest of remitted funds from the head office is liable to tax.

The foreign company and the representative office are considered to be the same single legal entity, with the result that the foreign company is bound to third parties by the acts which its representative office has conducted within the scope of authority granted to it. If the representative office commits an act without authority or acts beyond the scope of its authority, that act would not bind the company as a matter of Thai law unless the act has been ratified by the company.

The representative office shall have at least 1 manager (foreign nationals) and 1 employee (Thai nationals).

WHY SHOULD YOU FIND TRUSTED CORPORATE LAWYER TO ASSIST YOU IN DOING BUSINESS IN THAILAND?

On behalf of international clients, a corporate lawyer in Thailand with a depth of experience can assist in setting up and registering Thai and Amity treaty companies. Our legal counsel and business consultants are strong in business and conflict resolution experience. That depth of experience, coupled with a contemporary perspective, means our corporate lawyers and business consultants tend to be forward- thinking and innovative in satisfying client needs.

Let M & S Law Office 2006 help you by calling us at (+66)2 693-2036 or send email via [email protected] or send us enquiry.

Related Legal Services

Thai Limited Company

A limited company in Thailand requires 3 Investors as promoters and shareholders of the company. An ordinary person aged 12 years old can set up a company in Thailand regardless of his/her nationality. Pursuant to the Civil and Commercial Code there are 2 types of share, namely an ordinary share and a preferred share...

Partnership

According to the Civil and Commercial Code (CCC), partnerships can be divided into 2 types: Ordinary Partnerships, Limited Partnerships. In an ordinary partnerships, at least 2 investors are required and they become partners who are jointly and wholly liable for all obligations of the partnership. An ordinary partnerships may or may not register as a juristic person...

Mergers & Acquisitions

In Thailand two or more companies can only amalgamate or merge together to form a single company using the procedures set out in Sections 1238 to 1243 of the CCC. Amalgamation is the only type of corporate merger permitted under Thai law. In an amalgamation two or more companies amalgamate together to form a new company that assumes all the rights and obligations of the companies to the amalgamation...

Regional Office Headquarters (ROH)

A regional office serves as an assistant, and reports to the head office with regard to maintaining and supervising matters of the branch offices or subsidiaries located in the same area. The operation of Regional Offices in Thailand in order to render the service for its head office or the affiliated company or the group company which is located in Thailand or Asian region is the operation of business under the business listed in List 3(21) attached to the Foreign Business...

Branch Office

Foreign companies may carry out certain business in Thailand through a branch offices which is setup in order to control various business activities in Thailand of their mother or parent company overseas. However, the liabilities of a branch offices remain with the parent company. A branch offices would need to have the same name as the parent company. Branch offices are required to maintain accounts only relating to the branch ...

Foreign Business Act

A foreigner may engage in certain types of business according to the Foreign Business Act B.E. 2542 (1999) with various types of activities located in the list of activities provided by the Foreign Business Act comprised in Lists one (1) to three (3)...

US Amity Treaty

The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand was signed on May 29, 1966. This treaty allows U.S. citizens and businesses to establish a company or branch office in Thailand. Under the treaty, is permitted to do almost anything a Thai company does...

BOI Promoted Activities

Investment privileges have long been one of the various measures applied by the Thai Government to attract foreign investment to Thailand and to support the Government�s goal of decentralising Thailand�s industrial base. One key investment incentive set up by the Board of Investment (BOI), the agency directly responsible for investment promotion, is tax and duty privileges for promoted projects...

Need Answers? Send US
Enquiry!

Follow us on