Timeline – 10 working days
Required Documents for setting up a representative office in Thailand
- Certificate of head office in abroad certified by Notary Public and translated into Thai version
- A letter of appointment of a representative certified by Notary Public and translated into Thai version
- Passport or Copy of ID card of a representative (Foreigners must sign the documents in Thailand)
- Power of attorney for Nara Accounting to act on the representative behalf towards government agencies (Nara Accounting arranges for this)
- The others information will be informed later which requires to keep at representative office although it is not submitting
Remark: Since the notice of the Ministerial Regulation No. 7 on the date of 26th May, B.E. 2560 (A.D.2017) about the scope of service business which is not required to register for alien to operate business results in good effects to operate representative office in Thailand as follows.
- No need to ask permission to set up a representative office in Thailand becomes popular for many alien juristic persons and relaxes the various rules; however, the representative office still needs to gather the various evidences at the representative office because it may be randomly checked by the Ministry of Commerce later.
- No need to pay the registration fee, the original fee (the old policy – registered) is up to the maximum level of hundred thousand, but in the present, it doesn’t need to pay any fee.
- Currently the minimum capital to be brought into Thailand is 2 million Baht (the original capital – 3 million Baht).
- Sending the evidence of transfer, in the present it is not required to send the evidence of transfer within 3 years, however, the representative should keep the transfer evidence of credit advice of bank which shows the transfer currency in Baht by keeping at the representative office due to it may be randomly checked by the Ministry of Commerce later.
- No need to send the technology transfer plan and no need to present implementation project in Thailand.
*** With the reason of being flexible at the representative office in Thailand doesn’t need to register which makes the setting up process easier than before which takes an average time of not less than 8 months and pay the government fee follow the capital of head office.***
Things must know for operating representative office in Thailand
The scope of operating business as representative office can provide the service within its scope or limited 5 business activities in accordance with the regulations of the Office of the Prime Minister in Establishment of Work Permit and Visa Center (No.3) B.E. 2544 (A.D.2001) by the representative office can provide either one or 5 business activities depending on the purpose and nature of the representative office as follows.
- Reporting business movements in Thailand to head office or its affiliated companies or its group of companies
- Consultation on various aspects pertaining to the goods in head office or its affiliated companies or its distributing group or consumers
- Procurement of supply sources of goods and services in Thailand for the head office or its affiliated companies or its group of companies
- Inspection and control of the quality and volume of goods purchased by the head office or its affiliated companies or its group of companies or hired by the head office for production in Thailand
- Dissemination of various information pertaining to new goods or services offered by the head office or its affiliated companies or its group of companies
The approved representative office must comply with certain terms and conditions, with details, as below:
- The representative must bring in the minimum capital of Baht 2 million to Thailand follow the scope of business as regarded by the law (decreased from original capital of 3 million Baht)
- All loans which are used to a licensee’s business operations can be made to an amount not exceeding seven times of the bring in capital to conduct the approved business
- Loan is defined as the total liabilities of the business regardless of any debt incurred by any form, excluding of ordinary business transactions such as trade payable, accrued expenses
- The representative who are in charge of the operations in Thailand, at least one such person must have residence in Thailand
- Residence is defined as a place to live in Thailand which can be contactable, such place could be office excluding of temporary accommodation such as hotel
- The representative must submit the evidences or documents related to the approved business when the authority has meet letter or any inquiries
- The representative must prepare the accounting and submit the financial statements to the Department of Business Development
Panwa offers full service for representative office which are
- Starting from setting up the representative office
- Submit the evidence of bring in capital to Thailand (Currently, it doesn’t need to submit, but shall keep evidence because it may be randomly checked)
- Accounting service for monthly, quarterly, yearly
- Related taxes service
- Auditing service
- Registration for the changes of importance of representative office
- Registration for dissolution (closing) the representative office in Thailand
Incidentally, if the head office in overseas intends to do the accounting by self, our Panwa Accounting team is ready to support on assisting the information and collaborate with head office in overseas which Panwa Accounting will take care of taxes and accountant regarding to the law including the service of auditing, preparing the documents for submitting and submitting to the related agencies.
Regarding to 10 years’ experience over the service of representative office and team member of fluent communicable in English with understanding the system of setting up, remaining the tax structure, auditing until the closure or dissolution of the representative office, which you can trust on our professional team.