LEGAL ENTITY FORMS FOR FOREIGN INVESTORS
Multinational companies may seek to establish a presence in Thailand but do not wish to establish a separate legal entity (such as registering a Thai limited company) for some reasons. Multinational companies may want the Thailand Office to function as a part of the head office overseas.
In this case the multinational companies may choose to establish a Branch, Representative Office or Regional Office instead of a company limited which is 100% owned by the head office aboard.
The structure is very similar to a company limited, as Branches are allowed to make a profit in Thailand; similar tax rules apply. However, the rules governing the activities of Branches are the same as the rules governing the activities of a foreign held company limited.
The structure is very different from that of a Branch or Company Limited. A foreign entity may establish a representative office in Thailand to engage in limited non-revenue-earning activities. These activities are restricted to:
1. Searching for local sources of goods or services for its head office.Inspecting and controlling the quality and quantity of goods procured by its head office.
Providing advice in various fields relating to products directly sold by its head office to local distributors or consumers.
Disseminating information about new products and services of its head office.
Reporting to its head office on local business developments and activities
A multinational company may set up a regional office in Thailand which is not a stand-alone legal entity. It is regulated to performing specific functions such as training, management services, and general marketing and sales promotion on behalf of its head office overseas. A Regional Office may not earn income in Thailand
The registration process of a Branch office, Representative office or Regional office takes approximately three up to six months.
To request further information or arrange an obligation-free meeting with one of our legal counsel, please contact us.