Set up a Branch Office in Thailand
A branch office is an ideal choice for multinational companies that want to develop a presence in Thailand’s business market but do not want to open a new company in Thailand.
Characteristics of branches in Thailand
Branch offices in Thailand work the same way as limited companies, only there are no shareholders or directors, as it is not a registered company, but a local branch of a foreign Head Office. This type of business form has its advantages: there are no special conditions for foreign companies to register a branch office and there is no requirement to have a local shareholder. Our Thai company formation experts can offer you more information on the particularities of a branch office.
Although foreign companies usually consider opening a branch office to be effective and low-cost, it is still required to comply with the requirements imposed by the Foreign Business Act according to the Thai laws before they can open a company in Thailand.
Documents necessary for setting up a branch in Thailand
It is necessary to submit the following documents of the parent company in order to register a branch office:
1. Memorandum of Incorporation;
2. Articles of Association;
3. Affidavit of the Manager stating the following:
• name of the corporation, date of registration and registration number;
• registered office address of the corporation;
• name, address, nationality, race, age of each director, as well as the number of shares held by them;
• authorized capital stock of the corporation, number of shares and its par value and amount of paid-up capital stock;
• total number of shareholders and their number of shares.
All of the mentioned documents must be notarized and certified by the local Thai Embassy and submitted to the Commercial Registrar. In order to prepare your documents and complete the legal process of registering your branch in Thailand, you will need the help of a Thailand company formation specialist.
Other requirements for establishing a branch in Thailand
One of the most important requirements for approval of an Alien Business License for a branch of a foreign corporation is a total working capital of 5 million Baht (in foreign currency) that must be delivered into Thailand at certain intervals over a period of 4 years. Furthermore, in order to proceed with setting up your branch office in Thailand, you should also register for VAT, request a taxpayer ID and a Commercial Registration Certificate.
If you need comprehensive information regarding the whole process of setting up a branch office, please contact our company registration consultants in Thailand for support.