Thailand · Local team in Bangkok
Representative office in Thailand
A representative office gives a foreign company a registered, non-trading presence in Thailand for sourcing, quality control, and market research. We confirm your plan fits the rules, register the office with the Ministry of Commerce, and arrange the bank account and work permits.
Trusted by foreign companies operating in Thailand
Overview
What a representative office is
A representative office is an extension of a foreign parent company, not a separate Thai company. It lets the parent keep a registered, non-trading presence in Thailand for sourcing, quality control, and market research. The parent owns it fully and remains liable for what it does.
The office is limited to five non-trading activities and cannot earn income. Since June 2017 it no longer needs a Foreign Business License for those activities, so you register it with the Department of Business Development at the Ministry of Commerce. The head office funds all of its costs.
Why a rep office
Why foreign companies open one
A low-commitment way to put a registered presence on the ground before you trade.
100% foreign ownership
The office is fully owned by your parent company, with no Thai shareholder and no local partner.
No Foreign Business License
Since 2017, a representative office no longer needs an FBL for its five activities. You register with the DBD instead.
A legal presence in Thailand
A registered base to source, inspect, and study the market before you commit to a trading entity.
Source and quality-check
Find suppliers, and check the quality and quantity of goods the head office buys or makes in Thailand.
Hire foreign staff
A rep office escapes the usual four-to-one Thai ratio, so you can place a manager on the ground with one Thai hire.
No corporate income tax
With no revenue, the office pays no corporate income tax on operations, though it still files returns.
Permitted activities
What a representative office can do
Five non-trading activities, all carried out on behalf of the head office.
Sourcing goods and services
Find and evaluate Thai suppliers of goods or services for the head office.
Quality and quantity control
Inspect goods the head office buys, or hires manufacturers to produce, in Thailand.
Advising on the head office goods
Advise Thai agents or customers on products the head office sells to them.
Sharing product information
Pass on information about the head office new products and services.
Market reporting
Report on business trends and market movements in Thailand to the head office.
A representative office cannot earn income. It may not sell or buy goods for profit, invoice customers, sign sales contracts, or act for third parties. The head office covers every expense. Crossing into revenue turns the office into a business that is doing trade in Thailand, and it becomes taxable.
Requirements
What you need to set one up
The office is registered, not incorporated, so the requirements turn on the parent and the local presence.
The office
- A foreign parent company, which owns the office 100%
- At least one manager or representative for day-to-day operations, appointed by the parent
- A physical office address in Thailand, not only a virtual office
- A Thai corporate bank account to receive the capital
Capital and people
- A minimum of THB 2 million in capital, remitted on the standard schedule
- One Thai employee for each foreign work permit
- Notarized and legalized parent company documents and a letter of appointment
- Registration with the Department of Business Development
Capital and work permits
Capital, remittance, and staff
The capital funds the office, since it earns nothing locally. It comes in over the first three years.
| Stage | Share of capital |
|---|---|
| Within three months of registration | 25% |
| By the end of the first year | 25% |
| By the end of the second year | 25% |
| By the end of the third year | 25% |
The minimum is THB 2 million. The formal rule sets the figure at 25% of the office estimated average operating expenses over three years, so a larger office may need to bring in more.
Work permits scale with capital. One foreign work permit needs THB 2 million remitted and one Thai employee. A second needs another THB 2 million, for THB 4 million in total, and a second Thai employee. A representative office is not held to the usual four Thai employees per foreign worker that applies to a normal Thai company.
The process
How we set up your representative office
Four stages, from parent documents to a working office.
Prepare the parent documents
We compile and legalize the head office documents, the business plan for the five activities, and the letter appointing your representative.
Register with the DBD
We file the establishment of the representative office with the Department of Business Development at the Ministry of Commerce.
Bank account and capital
We open the Thai corporate bank account and remit the first tranche of capital on schedule.
Work permits and tax
We register the office for tax, arrange the manager visa and work permit, and put bookkeeping in place.
Tax
How a representative office is taxed
No revenue means no corporate income tax, but the filing duties remain.
A representative office earns no income, so it is not subject to corporate income tax on its operations. It still has to register for a tax ID, file annual income tax returns, and submit audited financial statements to the Revenue Department and the DBD. Interest earned on the funds remitted from the head office is taxable, and the office withholds tax on staff salaries.
Stay inside the five activities. If the office buys, sells, invoices, or otherwise earns income, the authorities treat it as doing business in Thailand. It then becomes liable for tax on its Thai income and may breach the terms of its registration.
Which entity
Representative office vs branch vs company
The right structure depends on whether you need to earn income in Thailand.
| Representative office | Branch office | Limited company | |
|---|---|---|---|
| Legal status | Extension of the parent | Extension of the parent | Separate Thai company |
| Can earn income | No | Yes | Yes |
| Activities | Five non-trading only | The parent business, FBA applies | Most sectors |
| Corporate income tax | None, no income | On Thai profits | On profits |
| Minimum capital | THB 2 million, on schedule | THB 3 million | THB 2 million if foreign-majority |
| Foreign Business License | Not required | Often required | Required for restricted sectors |
| Best for | Sourcing, quality control, research | Running the parent business | Trading and operating locally |
A representative office is the lightest option, but it cannot trade. When the plan moves to selling or invoicing in Thailand, our Bangkok team can convert the approach to a branch or a limited company.
Common questions
Representative office questions
What foreign companies ask before registering in Thailand.
Can a representative office earn income in Thailand?
No. A representative office is limited to five non-trading activities and cannot sell, invoice, or earn revenue. All costs are funded by the head office. If it trades, it is treated as doing business and becomes taxable.
Does a representative office need a Foreign Business License?
No. Since June 2017 a representative office no longer needs an FBL for the five permitted activities. You register it with the Department of Business Development at the Ministry of Commerce.
How much capital does a representative office need?
A minimum of THB 2 million, brought in on a schedule of 25% within three months and 25% by the end of each of the first three years. The formal rule sets it at 25% of estimated three-year operating expenses, so a larger office may need more.
Can a representative office hire foreign staff?
Yes. A representative office is not bound by the usual four Thai to one foreign ratio. One work permit needs THB 2 million remitted and one Thai employee, and a second needs another THB 2 million and a second Thai employee.
Does a representative office pay corporate income tax?
Because it earns no income, it is not subject to corporate income tax on operations. It must still obtain a tax ID, file returns, and submit audited financial statements, and interest on the remitted funds is taxable.
How long does it take to set up?
Registration with the DBD is straightforward and usually takes a few weeks. Most of the timeline is document legalization in the parent country, opening the bank account, and arranging work permits.
Representative office or a limited company?
A representative office suits sourcing, quality control, and market research with no revenue. If you plan to sell, invoice, or sign contracts in Thailand, you need a limited company or a branch instead.
On the ground in Bangkok
Talk to our Thailand team
Tell us your parent company and the activities you plan in Thailand. Our Bangkok team will confirm the office fits the five activities, register it with the DBD, open the bank account, and arrange work permits.
Emailthailand@emerhub.com
Phone+66 92 554 5444
OfficeUnited Business Center II
591 Sukhumvit 33, Watthana
Bangkok 10110
591 Sukhumvit 33, Watthana
Bangkok 10110