Many companies start off in Thailand with a representative office before they start full operations. This allows them to test the Thai market before making any big investment. This is only a brief of the limitations. There are limitations on a representative office in Thailand. These are a list of the most important points which are highlighted. Speak to our barrister before you decide as this is a brief guideline to the limitations of setting up representative office in Thailand.
Lets look at the important points:
- The office must not generate an income from what it does in Thailand;
- It is not allowed to conduct transactions for any sales;
What this office is allowed to do are the following:
- Source products in Thailand for its Head Office;
- Check any goods and services bought it Thailand by its Head Office;
- Provide advice and assistance to its Head Office as to local laws and products.
In order to setup a representative office in Thailand the office first needs a business license from the Partnerships and Companies Registration Office of the Ministry of Commerce. The Thai government could also inquire as to what benefits this office will bring to the Thai economy and many ask for more information about the setup from the Head office. Speak to a barrister in Thailand about setting up a representative office in Thailand for your company.