Thailand Branch Office

Branch offices of foreign companies can be operated in Thailand. In that case you do not have to register a Thai limited company. Foreign Business Act B.E. 2542 stipulates the types of business prohibited to foreigners, some of which will never be allowed, some may be allowed only if there will be Thais holding at least 40% of the shares, and others may be allowed with majority or 100% foreign ownership.

Branch offices operating in the business of manufacturing or export of products from Thailand do not need to obtain a foreign business license. Other types of business, subject to the Foreign Business Act, can only operated by a Thailand branch office after being granted a “Foreign Business License” by the Bureau of Foreign Business Administration, Department of Business Development, Ministry of Commerce. If a branch office manufactures goods in Thailand, it can sell the manufactured products in Thailand too. However if the same branch office wants to engage in service business, it has to obtain a foreign business license for the service business. Likewise, if a branch office exports goods from Thailand and wants to sell goods inside Thailand, it needs to obtain a foreign business license for the domestic sale business.

For more information of operating a branch office in Thailand, contact today.