Professional Accounting Services in Thailand

Professional Accounting Services in Thailand

Immediate Consultation
Immediate Consultation

Starting a Business

Representative Office

A Representative Office is an ideal option for foreign companies looking to enter the Thai market or connect with local business interests.
One major benefit is the simplified process for obtaining work permits for foreign employees, making it easier to manage operations. This structure allows companies to conduct market research and build local relationships without the commitment of a full subsidiary.
  • 100% Foreign Ownership
  • No Income Tax
  • Up to 3 Foreign Staff

Cost

From 75,000THB

Investment

cumulative investment of 2,000,000 THB 

Process Time

15 Business Days
Representative Office

Representative Office at a glance

  • Wholly owned by the parent company, the Representative-Office in Thailand operates under the direct liability of the parent company, without any separate liability.
  • Representative-Offices are not permitted to generate income, there they are not subject to Corporate Income Tax in Thailand.
  • The ratio is 1:1 (1 Thai employee for every foreign employee), in contrast to the general 4:1 ratio for limited companies. In practice, such structure can employ up to 3 foreign workers.
In addition to the aforementioned requirements, please note that additional documentation may be necessary during the application process.

Why trust VB & Partners?

Embarking on a business venture, especially in a foreign country, can appear overwhelming. At VB & Partners, we understand this challenge and our experts are ready to assist with your needs. Our comprehensive range of services covers every step, from initial business feasibility assessments to complete incorporation and starting your business operations.

Navigating local laws and regulations is an essential concern for foreign enterprises. Our tailored solutions are designed to ensure adherence to all legal requirements. Backed by a team of experts who are familiar with the Thai market and regulations, resulting in the smooth operation of your business.

What does this package include

  • Submit required documents
  • Address setup inquiries.
  • Advise on post-registration obligations.

Setup Your Representative-Office Now

A cumulative investment of 2,000,000 THB is mandated over the first 3 years
Apply Now

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Receive your free quotation regarding accounting and tax services in Thailand within 24 hours.

Whether you are getting started in Thailand or are looking for a new accounting service, our experts are ready to help. 

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Frequently Asked Question

What is a Representative Office?

A representative office in Thailand is a non-trading entity that serves as an extension of its foreign parent company. It allows foreign businesses to establish a presence in Thailand without engaging in direct income-generating activities12.

What are the advantages of a Representative Office in Thailand?

The main advantages of setting up a Representative Office in Thailand is the possibility to support one work permit per foreign employee with only one Thai employee (the ratio for a limited company is 4 Thai employees per foreign employee except if the company has obtained a promotion from the Board of Investment). The maximum number of foreign employees is usually 3 (it is sometimes possible to obtain several more work permits depending on the activity of the Representative Office).

As the Representative Office cannot generate income in Thailand, it is not subject to corporate income tax. However, the employees are still subject to the personal income withholding tax on their salaries.

Can my office sell products or services in Thailand?

No, representative offices are strictly prohibited from engaging in any direct sales or revenue-generating activities within Thailand.

Is there a limit to how long it can operate?

There's no set time limit, but the Thai government may review the office's activities periodically to ensure compliance with regulations.

Can a representative office hire Thai employees?

Yes, representative offices can employ Thai nationals in addition to their foreign staff allocation.

Are there restrictions on the location of a representative office in Thailand?

No specific restrictions exist, but most representative offices choose to locate in major business centers like Bangkok.

How does taxation work for a representative office?

Since representative offices don't generate income, they're typically not subject to corporate income tax. However, they may be liable for other taxes such as withholding tax on employee salaries.

Representative Office or Thai Limited Company, what is the best?

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A Representative Office has the ratio of 1 Thai employee per foreign employee but its activities are limited and it cannot generate income while a Thai Limited Company with a local partner can carry out most business activities without any specific restrictions. The key differences are highlighted below:

 REPRESENTATIVE OFFICETHAI LIMITED COMPANY
LiabilityNo separate liability from the head officeLiability of the shareholders limited to the amount invested
Foreign ownershipUp to 100%Limited to less than 50% in most activities except with BOI Licence
Thai to foreign employee ratio1:14:1
Corporate income tax rateNo corporate income tax20%
Business restrictionsLimited to 5 activities. Cannot generate income.No specific restriction if more than 50% of the capital is held by Thai shareholders
Reporting and auditsAnnual accounting auditAnnual accounting audit
Timeline2 week1 week
 

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