Setup the Representative Office in Thailand

A representative office lets a foreign company have its own presence in Thailand without trading here. It supports the head office with sourcing, quality control, product information and market reports, and it is funded entirely by the head office. VEACCO helps you check that a representative office fits your plans, then handles the full setup in clear English.

What is a representative office?

Under the Foreign Business Act, a representative office of a foreign company in international trade is a service business listed in List Three (21). Its definition comes from the Prime Minister’s Office Regulation on the Visa and Work Permit Service Center (No. 3) of 2001.

What a representative office can do

Source goods or services in Thailand for the head office
Inspect and control the quality and quantity of goods that the head office buys or has manufactured in Thailand
Give advice about the head office’s products to its distributors or customers
Share information about the head office’s new goods or services
Report on business developments in Thailand to the head office

Main features of a representative office

No income: it does not earn income from its services.
No sales: it cannot take orders, make offers to sell, or negotiate business with people or companies in Thailand.
Funded by the head office: its expenses are paid only by money from the head office.
No corporate income tax: it does not pay corporate income tax under the Revenue Code. The exception is interest earned on deposits of money left over from the head office’s funds, which is taxed.

What a representative office cannot do

These activities go beyond the scope of a representative office:

Ordering or paying for goods on behalf of the head office or its affiliates, or handling any purchasing transactions
Exporting goods ordered by the head office or its affiliates
Inspecting or controlling the quality or quantity of goods for companies other than the head office or its affiliates
Providing after-sales services such as installation or repairs
Giving advice on products that the head office or its affiliates do not make or sell
Taking orders for goods or services on behalf of the head office or its affiliates
Coordinating the buying or selling of goods on behalf of the head office or its affiliates
Promoting goods or services that are already sold in Thailand
Acting as a middleman or sales agent between customers in Thailand and the head office or its affiliates
Planning and coordinating with other organisations on business matters on behalf of the head office or its affiliates
Signing contracts or entering into transactions on behalf of the head office or its affiliates
Reporting information to businesses other than the head office or its affiliates

If your plans include any of these, a Thai company or a branch office may suit you better. We can advise you on the right structure.

How the setup works

Review your plans: we confirm that your activities fit within the five permitted services.
Prepare the application: we prepare the application to the Department of Business Development (DBD), together with the head office documents.
File and follow up: we file the application and follow up with the DBD until it is approved.
Bring in the capital: the head office remits the minimum capital to Thailand on the required schedule.
After approval: we help with the tax ID, the bank account and work permits for foreign staff.

Capital requirements

The minimum capital is 25% of the office’s estimated average annual expenses over its first 3 years, and not less than 3 million baht. It must be brought in from overseas in stages:

Stage	Capital to be remitted
Within 3 months of starting	At least 25%
Within the first year	At least 50% in total
Each year after that	At least a further 25%

Frequently asked questions

Can a representative office earn income in Thailand? No. It cannot earn income from its services, and its costs are funded only by the head office.

Does a representative office pay corporate income tax? No, except on interest earned from deposits of the head office’s leftover funds.

Can a representative office sell our products in Thailand? No. It cannot take orders, sell, or negotiate deals. To sell in Thailand, you need a Thai company or a branch office.

Can we provide after-sales service? No. Installation, repairs and other after-sales services are outside the scope of a representative office.

How much capital do we need? At least 3 million baht, or more if 25% of your estimated average annual expenses over 3 years is higher. It is brought in from overseas in stages.