Branch Office Service in Bangkok, Thailand

Unlike representative office which is involved with non-trading activities, branch office of foreign company can be set up under 100% foreign ownership with involvement in trading activities thus making profit for its head office. Multinational companies intending to make their mark in Thailand might want to go ahead with establishment of branch office in Thailand. Laws and guidelines to establish and operate branch office in Thailand is governed by Foreign Business Act 1999 as well.

A branch office of a foreign company cannot carry out any desired business without Foreign Business License. Formal application to the Ministry of Commerce has to be filed for a Foreign Business License first, and can operate as desired business only after the License is granted. Establishing a branch office in Thailand is equally time consuming and comprises of high set up cost. The application is reviewed by committee on its merit basis. If the reserved business is unique and does not compete with Thai businesses or involves dealings among members of an affiliated company, the change of approvals more probable. However, conditions, such as minimum capital, transfer of technology and reporting requirement may be attached to Foreign Business license.

Brach office of the foreign company has to obtain Commercial registration certificate from Ministry of commerce as well. The scope of activities of branch office might fall within the scope of one or more laws or regulation that requires special registration viz; VAT registration, taxpayer identification etc.

Once granted permission to operate as branch office under Thai law, it is obliged to bring in the capital with in the regulation and rules stipulated by Ministry of commerce and operational period of 5 years is granted. After initial 5 years is over the extension of Foreign Business License can be filed provided that branch office has performed according to the conditions attached to the Foreign Business License.