What is a Representative Office in Thailand?

A Representative Office is a non-trading presence established in Thailand by a foreign company. Unlike a Thai Company Limited or a Branch Office, a Representative Office is not allowed to generate income, enter into sales contracts, or conduct revenue-generating business activities in Thailand.

Its purpose is limited to supporting the foreign parent company through specific non-commercial activities, such as market research, quality control, sourcing goods or services, and coordinating operations between Thailand and the head office.

As it is not a separate legal entity, the foreign parent company remains fully responsible for the activities and obligations.

Main characteristics

A Representative Office operates exclusively on behalf of its foreign parent entity and cannot provide services to third parties in exchange of compensation.

The activities are limited to specific functions authorised under Thai regulations, including:

• Sourcing goods or services in Thailand for the parent company
• Monitoring and controlling the quality and quantity of goods purchased in Thailand
• Providing information about products or services offered by the parent company
• Reporting business developments in Thailand to the head office
• Coordinating activities between the parent company and local business partners

As a non-trading entity, the structure cannot issue invoices, receive payments, negotiate commercial transactions, or generate profits in Thailand. Any activity generating revenue or creating commercial obligations in Thailand is prohibited.

Capital requirements

A Representative Office is generally required to maintain a minimum capital of 3,000,000 THB, which must be funded by the foreign parent company.

As it is an extension of a foreign company, there is no requirement for Thai shareholders or local ownership participation.

Registration process in Thailand

To establish a Representative Office, the foreign company must submit an application to the Department of Business Development (DBD) and provide supporting documentation relating to its legal status, business activities, and intended operations in Thailand.

The application generally includes:

• Corporate documents of the Head Quarter structure
• Details of the proposed activities in Thailand
• Appointment of a local representative (who may be a Thai or foreign national)
• Evidence of financial capacity
• Supporting documents demonstrating that the proposed activities fall within the permitted scope

Once approved, the Representative Office must complete the necessary tax, employment, and compliance registrations before commencing operations.

Accounting and compliance requirements

Although a Representative Office cannot generate revenue in Thailand, it remains subject to accounting and regulatory compliance obligations.

These include bookkeeping, annual audited financial statements, payroll-related tax filings, and compliance with labour and immigration regulations and it is not subject to corporate income tax on local business operations.

Advantages of a Representative Office

Some of the main advantages include:

• No commercial operations required
• Suitable for market research and business development
• Direct link with the foreign parent company
• Useful for exploring opportunities before making a larger investment

Limitations of a Representative Office

Some of the main limitations include:

• Cannot generate revenue in Thailand
• Cannot issue invoices
• Cannot sign commercial sales contracts
• Cannot engage in trading activities
• Parent company remains fully liable for operations

Because of these restrictions, a Representative Office is generally unsuitable for businesses seeking to actively trade in Thailand.

Who should use a Representative Office?

It is typically suitable for:

• Foreign entities exploring the Thai market
• Companies seeking to identify suppliers in Thailand
• Groups wishing to coordinate operations between Thailand and their overseas head office
• Companies requiring a local presence without commercial activities

For businesses intending to generate revenue in Thailand, a Thai Limited Company or Branch Office should be more appropriate. Choosing the right structure depends on your business objectives, operational needs, and long-term plans in Thailand.

At Gorioux Siam, we assist foreign companies in assessing the most appropriate setup and support them throughout the registration and compliance process.

👉 Contact us to discuss your setup

Frequently asked questions

Can a Representative Office generate income in Thailand?

No. It is strictly prohibited from generating revenue or conducting commercial activities in Thailand.

Can a Representative Office sign contracts?

It may enter into contracts necessary for its operations, such as office leases or employment agreements. However, it cannot enter into commercial contracts for the sale of goods or services in Thailand.

Can a Representative Office employ staff in Thailand?

Yes. It may employ both Thai and foreign staff, subject to applicable labour and immigration regulations.

Does a Representative Office pay tax in Thailand?

No, it is not permitted to generate revenue and is therefore generally not subject to corporate income tax on business operations in Thailand. However, it must still comply with certain accounting, payroll, and regulatory obligations, including employee-related tax requirements where applicable.