Representative Office

Under Thai Law, a foreign company can establish a limited presence by registering a representative office which can provide a useful stepping stone in testing the size of the Thai market before committing to establishing a registered company.

The function of a representative office is to liaise with and provide information and assistance to the foreign company. The representative office is expected to serve a support function only. It must not generate income as a result of its activities in Thailand nor execute any transaction involving the sale or purchase of products or services directly by the company.

Under government regulations, the business activities that a representative office can carry out are limited to at least one of the following 5 activities:

Source for goods or services in Thailand for the head office.
Checking and controlling the quality and quantity of goods purchased or hired for manufacture in Thailand by the head office.
Giving advice concerning goods from the head office sold to agents or consumers.
Propagation of information concerning new goods or services of the head office.
Report on business trends in Thailand to the head office.

General characteristics of a representative office are as follow:

Non revenue-generating activities.
No authority to accept purchasing orders or to make offers for selling or to negotiate for carrying out of business with person or juristic person in the country in which it is established.
All expenditure incurred by the representative office must be borne by the head office.
It is not subject to corporate income tax, in accordance with the Revenue Code with the exception that the deposit interest of remitted funds from the head office is liable to tax.

The foreign company and the representative office are considered to be the same single legal entity, with the result that the foreign company is bound to third parties by the acts which its representative office has conducted within the scope of authority granted to it. If the representative office commits an act without authority or acts beyond the scope of its authority, that act would not bind the company as a matter of Thai law unless the act has been ratified by the company.

The representative office shall have at least 1 manager (foreign nationals) and 1 employee (Thai nationals).

WHY SHOULD YOU FIND TRUSTED CORPORATE LAWYER TO ASSIST YOU IN DOING BUSINESS IN THAILAND?

On behalf of international clients, a corporate lawyer in Thailand with a depth of experience can assist in setting up and registering Thai and Amity treaty companies. Our legal counsel and business consultants are strong in business and conflict resolution experience. That depth of experience, coupled with a contemporary perspective, means our corporate lawyers and business consultants tend to be forward- thinking and innovative in satisfying client needs.

Let M & S Law Office 2006 help you by calling us at (+66)2 693-2036 or send email via contact@mslaw2006.com or send us enquiry.

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