Setting Up A Branch Office In Thailand

Foreign Business Act B.E. 2542

International companies wishing to operate in Thailand should consider setting up a Branch Office as this corporate structure would allow them to maintain 100% control over their subsidiary unlike a Thai Limited Company which can only be 49% Foreign held. Under Thai Law, a Branch Office will be governed by the Foreign Business Act B.E. 2542 (FBA). This means that should the activities of a Branch Office fall under any category of the Foreign Business Act, the Branch Office will need to acquire a Foreign Business License (FBL) in order to operate in Thailand.

Important Notes About A Branch Office

A Branch Office is basically a foreign company that registers its presence in Thailand. The Branch Office is not considered as a separate entity but rather an extension of its own Mother company. Therefore, the Branch Office will not have separate Shareholders or Bylaws from those of the Mother company. It should also be noted that the activities of the Branch Office may differ from those of the Mother company.

The application process for registering a Branch Office in Thailand requires that all the company documents of the Mother company to be notarized and translated to Thai. The Mother company should also supply a detailed business plan and include the intended activities to be carried out by the Branch Office in Thailand.

Unlike a Representative Office, a Branch Office is allowed to earn income in Thailand. The tax related compliance for a Branch Office in Thailand is exactly the same as those for any company registered in Thailand.

Requirements To Set Up A Branch Office

General Requirements

  • A minimum capital of 3 million THB must be brought into the country prior to the granting of the Foreign Business License. Also an additional 3 million THB is required for every business activity which the Branch Office will engage in.
  • The Branch Office requires that the Head Office appoints at least one Director to look after the management and day to day operations of the Branch Office.
  • Every fiscal year, submission of taxes must be made consisting of the details of the business development, in report form, with financial reports and taxes to the Revenue Department.

Documemnts Required

  1. A copy of a certificate or evidence of the juristic person status containing particulars of the name, capital, paid-up capital, list of shareholders, objects, place of business, list of directors and signatories who are authorized to bind the juristic person (AFFIDAVIT) of the mother company applying for the Representative office.
  2. A letter of appointment of a representative issued by the authorized signatory under (1) as appointer of a representative to have charge of the business operations in Thailand on behalf of juristic person (POWER OF ATTORNEY).
  3. A copy of the passport, identification document for foreigners or identification card(s) of the director appointed.
  4. Confirmation from the head office of the salary and other remuneration of the director in charge of the operations in Thailand.
  5. A copy of the house registration, a certificate of residence in the Kingdom or evidence of permission to enter the Kingdom for a temporary stay under the law on immigration of the director appointed.
  6. A copy of the lease for the premises where the Branch Office will be located.
  7. A map indicating the approximate location of the Branch Office's place of business operation in Thailand.
  8. A power of attorney in the case where another person has been authorized to act on the applicant’s behalf.

Summary - Setting Up A Branch Office

So as you can see setting up a Branch Office in Thailand can be rather difficult and it is a lengthy process. A Branch Office is a great solution for a company looking to expand into Thailand with 100% Foreign Ownership of its business. There are other corporate structures Foreign companies can subscribe to that will enable them to start doing business immediately. For more information on setting up a Branch Office or for infomation about other corporate setups or to consult with a corporate professional at PCS for FREE please don't hesitate to to fill in the form below and Contact Us! We are looking forward to hearing from you.

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