Branch Office in Thailand
These are the options avaibale to you if you do not want to register a company in Thailand and would rather have only a brnach office. As an American citizen you have more options with regards to business ownership in Thailand as shown below.
Branch Office Options
- Public Limited Companies
Private Limited Companies who want to issues stocks to the public may convert to Public Limited Companies. Public Limited Companies are governed by the Public Limited Company Act and the Securities and Exchange Act. They are subject to greater regulation to protect shareholders.
- Thai Branch Office
Multinational businesses can easily expand into Thailand by opening a branch office. A Thai branch office is not a separate business entity, so the parent company will be liable for the branch’s debts and tort liabilities. No special registration is required, but the Thai branch will have to comply with the usual regulatory requirements by registering for the VAT, applying for corporate tax ID, and getting a foreign business license.
- Thai Representative Office
Establishing a Thai Representative Office enables a company to engage in an "international trading business" without incurring Thai Tax Liability. These offices are allowed to source goods for the parent company, check on the quality of the sourced goods, and report to the parent company on market trends. Representative offices are prohibited from generating revenue. They are required to apply for a tax ID card and file income returns whether or not they generate taxable income. There is a 2,000 THB application fee for Representative Office registration with an additional 20,000 - 250,000 THB (0.5% of registered capital) fee if the application is approved.
- Thai Regional Office
A Thai Regional Office is a special corporate entity used to provide "supporting services" to the associated parent company. "Supporting services" includes administration, sourcing, technical support, R&D, marketing, training, and credit management. Thai Regional Offices enjoy a reduced 10% corporate tax rate on supporting service income and royalties on Thai R&D accomplishments. Dividends paid by the Thai branch office to foreign entities not directly incorporated within Thailand are exempt from Thai taxaion.