Representative office
in Thailand.

Establishing a 100% foreign owned company can be a lengthy process in Thailand, with the Foreign Business Act applying strict requirements to meet the approval for a Foreign Business License. Establishing a representative office in Thailand, on the other hand, is effortless and is usually considered by foreign companies wanting to conduct market research and assist in finding new partners or opportunities in the market, before setting up a permanent entity in Thailand. A foreign company is permitted to establish a representative office according to the Civil and Commercial code in Thailand without seeking a Foreign Business License. Being an extension or subsidiary of the head office, this structure is only allowed to undertake certain activities as explained below. Generally, however, there are fewer conditions to meet for a representative office than other categories of foreign entities in Thailand. The primary distinguishing factor between this structure and a limited company, is the representative office cannot invoice within Thailand. Accordingly, there will no income tax to be paid by the representative office, which makes tax reporting and accounting obligations simpler.