Regional Office vs Representative Office vs Branch Office
There are various types of legal entities which foreign investors can use to conduct business in Thailand other than a limited company or partnership. Such entities include a regional office (RO), representative office (Rep Office) and branch office (Branch).
Keywords: Mazars, Thailand, Regional Office, Representative Office, Branch Office, Foreign Entity, Legal
25 October 2017
Below is a table comparing certain key areas for each type of entity:
| || || |
Nature of activity
| || || |
Licence to operate business
| || |
(*) Five activities are the following:
1) Reporting on business trends in Thailand to the head office or its affiliate.
2) Providing advice concerning goods of the head office sold to agents or customers.
3) Sourcing of goods or services in Thailand for the head office or its affiliate.
4) Checking and controlling the quality and quantity of goods purchased or hired for manufacture in Thailand by the head office or its affiliate.
5) Preparing information concerning new goods or services of the head office or its affiliate. Any other services as stipulated by the Director-General of the Revenue Department
(**) Ministerial Regulation Prescribing Service Businesses Not Subject to Application for a Foreign Business Licence (No. 3), 2560 B.E.
(***) Three million baht is required to issue a visa and work permit for an expatriate, and an additional 3 million baht is required for each additional expatriate employee.
The support services that an RO can provide are as follows:
- Training and development;
- Technical assistance;
- Financial management;
- Control of marketing and sales promotion planning;
- Product development; and
- Research and development.
For more information, please visit Royal Decree No. 586 (2015) , ROH (Regional Operating Headquarters) vs. RO (Regional Office) , and Ministerial Regulation Prescribing Service Businesses Not Subject to Application for a Foreign Business Licence (No. 3), 2560 B.E. .