Set Up a Representative Office in Thailand

Set Up a Representative Office in Thailand offers a simple and cost-effective way for a foreign company to establish a business presence in the country. The entity manages service businesses on behalf of the head office and affiliated companies in other countries.

A key restriction is that the RO cannot earn revenue in Thailand. It must also bear all expenditures and can only negotiate business matters with juristic persons in the country.


A representative office is a great way for foreign companies to explore the Thai market without investing in a local subsidiary. It can conduct research, report to the parent company, and source products to sell to customers in Thailand. It can also perform quality and quantity control for goods the headquarters buys from local suppliers. This allows the company to save money by not having to pay for shipping fees or import duties.

However, it is important to note that a representative office cannot accept purchase orders; offer sales; or generate profit on its own account. In addition, it must comply with the local labor laws and submit audited reports.

To set up a representative office, the foreign parent company must submit several documents to the Department of Business Development. These include the power of attorney for the manager and proof that they are authorized to conduct business in Thailand. It is also important to consult with a professional firm that specializes in Thai company formation.

Access to local market

Having a local presence in Thailand will give your company access to the country’s highly competitive market. Moreover, it will allow you to closely monitor your competitors and adapt your business strategies accordingly. In addition, it will help you build a strong brand image and increase your customer base.

Representative offices are the most common non-trading legal entities in Thailand. They can be 100 percent foreign-owned and can provide up to two work permits for foreign employees. They are also free from corporate income tax as they do not earn revenue in the country.

However, setting up a rep office in Thailand is not without its challenges. You’ll need to submit a variety of documents to the Department of Business Development, and you’ll need to set up a bank account. You’ll also need to adhere to reporting requirements and compliance with local tax regulations. Fortunately, you can hire a professional service provider like Plizz to take care of these tasks for you.

Increased brand visibility

Setting up a Representative Office in Thailand provides a cost-effective opportunity to study the local market and establish trust, relationships, and credibility with key local partners. It also provides a way to expand brand visibility through participation in trade shows and business conferences.

However, setting up a Representative Office in Thailand can be challenging for foreign companies. It requires a significant amount of paperwork and requires adherence to strict legal requirements. Plizz can help you navigate the process, ensuring compliance with all laws and regulations.

A Representative Office is a non-trading entity that manages service businesses in Thailand on behalf of its head office or an affiliated company in another country. It cannot generate revenue and is not subject to corporate income tax except for interest earned on deposits. It can also conduct non-commercial activities, such as sourcing products from Thailand and conducting quality control. In addition, it can provide information about its head office’s products and services to the Thai market.

Boosted reputation

Setting up a representative office in Thailand is an excellent way to build local relationships and brand credibility. It also allows businesses to develop crucial connections with Thai customers and partners. These connections will be essential for long-term success in the country.

In addition to meeting minimum capital requirements, representative offices must comply with labor laws and other regulations. Additionally, they must report their income to the local tax department and adhere to withholding tax obligations.

A representative office is a foreign-owned business entity that manages service businesses on behalf of the head office, group company, or affiliated companies in different countries. It cannot earn income in Thailand, but it can support the activities of its parent company by conducting market research and promoting business opportunities. A representative office must also have a bank account and submit monthly tax returns. Lastly, it must employ at least one Thai employee and have a physical office space.

Joseph Scott
Joseph Scott

Leave a Reply