09Aug/17

How to Open a Branch Office in Thailand

Most multinational companies keen on operating their businesses in Thailand prefer to open a branch office in Thailand instead of establishing a Limited Company. These multinationals see the merit establishing a branch office in Thailand as an effectual and cost-effective way of overseeing their business, and selling their products or services in a foreign land.

Under Thai law, Branch Offices are not limited to engaging in non-trading activities only. Unlike Regional Offices and Representative Offices, Branch Offices are permitted to earn income. However, the liabilities assumed by a Branch Office in Thailand extend to the head office located abroad.

The Foreign Business Act B.E. 2542 or FBA is the governing body when it comes to putting up a branch office.  If the activities of a branch office fall under the categories listed under the FBA, a Foreign Business License or FBL will be required.  The foreign company is required to meet all the requirements imposed by the FBA before it is issued an FBL. The process may take up to 60 working days from the date of application with no guarantee of a grant. Setting up a Branch Office is often less tedious than establishing a new foreign-owned business in Thailand.  Once a Branch Office is issued an FBL, it is registered and may start operations.

Requirements in Opening a Branch Office in Thailand

Generally, there are no set limitations or specifics to Thai or foreign shareholding when it comes to setting up a branch office.  However, the required minimum … Read More