Branch Offices Set-Up
Foreign companies may carry out certain business operations in Thailand through a Branch Office, meaning they do not need to establish a full local presence in Thailand. The Branch Office is part of the Parent Company, thus the Parent Company retains legal liability for Branch Office’s actions. Even though being part of the Parent Company, the domestic operations of the Branch Office need to comply with Thai law.
The Head Office in the foreign country must appoint at least one Branch Office Manager to be in charge of the operations in Thailand. There are no special registration requirements, unless the Branch Office’s business activities fall into the scope of legislation requiring special registrations. If so, the registration requirements must be met before the commencement of operations.
For tax purposes, Branch Offices are taxed like corporate entities implying that Branch Offices are subject to Corporate Income Tax on the income derived from operations in Thailand. It is important to clarify beforehand what constitutes income that is subjected to Thai tax. A Branch Office needs to apply for a Corporate Taxpayer Identification Card and a VAT certificate.
For operating in business domains as specified by the Foreign Business Act, Branch Offices need to obtain a Foreign Business License. In order to obtain a Foreign Business License, the Branch Office needs to fullfil the requirements outlined in the Foreign Business Act (e.g. minimum capital requirements etc.).