BRANCH OFFICE
Overseas companies wishing to expand their businesses to Thailand may want to register a branch office to exercise full control over their subsidiaries.
Branch Office Overview
Unlike a representative office, a branch office may engage in revenue generating activities for its parent company. The structure of a branch office is in many ways similar to that of a limited company except that there are no shareholders and directors, since it is considered as an extension of its overseas head office. Under Thai Law, a branch office also falls under the Foreign Business Act which regulates the activities a foreign business can be involved in and for which a Foreign Business License is required.
-
Foreign Ownership: Up to 100 %
-
Capital Requirements: 3 Million Thai Baht
-
Registration Time: 3-5 Months
Branch Office Registration Process
Setting up a branch office is a complicated and laborious process of which obtaining the Foreign License will be the most time-consuming part.
Average Duration of Registration 3 to 5 months
Business Name Reservation
Preparation of Required Documents
Obtaining Approval
Capital Registration
Obtaining the necessary licenses
The outcome can be very unpredictable and is on the merits of the responsible officials. In order to increase the chances of success the parent company needs to explain to the committee how opening this kind of business would benefit the country.
Because of the complexities of registering such a business structure, we advise our clients to consult with our experienced team of lawyers prior to filing a branch office application.