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City Lawyer Consulting

Creating a regional office

Regional offices differ from branches in their structure. Regional offices in Thailand are not separate legal entities and operate in Thailand on behalf of the head office abroad.

Company registration

Setting Up of Regional Office.

Regional offices are limited to performing only seven specific actions.

These activities fall under Schedule 3 of the Foreign Business Act of 1999 (FBA).

  • Communication, coordination, and direction on behalf of the head office;
  • Activities of branches and affiliates located in the region;
  • Providing consulting and management services;
  • Staff training and development;
  • Financial management;
  • Marketing control and sales promotion planning;
  • Product development;
  • Research and development services.

Regional offices must also apply for a foreign business license. Foreign companies must have at least one active branch or subsidiary in Asia before operating in Thailand. In addition, regional offices are also restricted from generating income, buying, selling, and negotiating.

Capitalization rules under the FBA also apply to regional offices. It must be at least 25 percent of the average cost estimate for the first three years but not less than 3,000,000 baht.

Please get in touch with us for professional legal advice and more information about setting up a regional office in Thailand.

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Update: 18-02-2023
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