How to Open a Representative Office in Thailand: Step-by-Step Guide
A Representative Office is an excellent option for foreign companies wishing to explore the Thai market without engaging in direct sales or generating local income. It allows foreign businesses to have a presence in Thailand to conduct non-revenue generating activities, such as market research, sourcing, and liaison with local partners.
β Key Functions of a Representative Office:
- Sourcing of goods or services for the head office.
- Checking and controlling the quality and quantity of goods purchased in Thailand.
- Providing information about products to local customers on behalf of the head office.
- Reporting business trends and opportunities in Thailand to the head office.
π‘ Note: A Representative Office cannot engage in trading, sales, or generate revenue in Thailand.
β Step-by-Step Guide to Open a Representative Office in Thailand
Step 1: Prepare Required Documents
- Application form for Representative Office registration.
- Company Affidavit or Certificate of Incorporation of the foreign parent company.
- List of directors and shareholders of the parent company.
- Power of Attorney appointing the local manager of the Representative Office.
- Business plan detailing the activities and purpose of the Representative Office.
- Financial statements of the parent company (latest 1-3 years).
Step 2: File Application with Department of Business Development (DBD)
- Submit all documents to the Ministry of Commerce (DBD) for consideration.
- Pay the required government fees.
Step 3: Obtain Approval
- The DBD will review the application and may request additional documents or clarification.
- Upon approval, the DBD will issue an official registration certificate for the Representative Office.
β Key Requirements:
- Minimum capital requirement: At least THB 2 million (approximately USD 55,000), to be remitted into Thailand.
- At least one local manager (can be a foreigner with proper visa and work permit).
- No revenue generation or profit-making activities allowed.
π― Benefits of Opening a Representative Office:
- Low-risk entry to study the Thai market.
- Build relationships and liaison with local partners.
- Promote parent company’s products/services without selling directly.
- No corporate income tax as long as it does not generate revenue in Thailand.
πΌ How BRW Can Help You:
At BRW – Boonrawee Co., Ltd., we offer full consulting services to set up your Representative Office in Thailand, including:
- Preparing and filing all necessary documents.
- Liaising with Thai government authorities.
- Assisting with managerβs visa and work permit applications.
- Ongoing compliance and legal advice.
π Contact us today to start your Representative Office smoothly and professionally!
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