Branch Office Setup
Some foreign companies wishing to do business in Thailand are not suitable for setting up a limited company.
Instead, they may conduct their business through a branch office located in Thailand. Under Thai law, a branch office is regulated by the Foreign Business Act BE 2542 (FBA).
When a branch office's activities fall within one of the categories outlined by the FBA, it is necessary to obtain a foreign business license (FBL).
Unlike a representative office and a regional office, branches under Thai law are not limited to management functions.
Branches of foreign companies can earn income from their activities.
The obligations of a Branch Office arising from the company's activities in Thailand will not be limited to Thailand but will extend to the head office abroad.
According to the approved foreign business license, the capitalization will be calculated with a minimum of 25 percent of the average estimated expenses for the first three years but at least 3 million baht.
For more information, please contact our Thai corporate lawyers, who can guide you in setting up a business.