Business Advisory firm focusing on company setup in Thailand, including BOI application, Thai limited, Immigration and labor consulting.

Regional Operation Headquarters

Regional Operation Headquarters Set-Up

Regional Operating Headquarters have been created by the Royal Thai government in order to attract more international businesses to establish their headquarters in Thailand. A Regional Operating Headquarter is a Juristic Person created according to Thai law with the purpose of providing managerial, technical, or other support to its associated companies and branches. Association is determined either on a shareholding basis (e.g. share participation either in the associated company or the Regional Operating Headquarter of not less than 25 percent) or on a control basis (e.g. power of control to supervise the operations and management).

Scope of Services

The scope of services can include:

  1. General administration, business planning and coordination
  2. Sourcing of raw materials and components
  3. Research and development
  4. Technical support
  5. Marketing and sales promotion planning
  6. Training and personnel management
  7. Financial advisory
  8. Market and investment research
  9. Credit control and administration
  10. Other services approved by the Director-General of the Revenue Department

Incentive Schemes

In order to attract foreign companies to establish their Regional Operation Headquarter in Thailand, the Thai government provides various incentives. Besides the original promotion scheme introduced by the government in 2002, there is a new promotion scheme available since November 2010. The original promotion scheme remains in force until until November 2015, meaning that companies can effectively choose among both schemes:

Regional Operation Headquarters

(Click on the image to extend)

Requirements

In order to enjoy the respective tax benefits, a Regional Operating Headquarters has to meet the following requirements:

  • The Regional Operation Headquarters must be a company or partnership incorporated under Thai law
  • It must have at least ten million Thai Baht in paid-in capital on the closing date of any accounting period
  • The Regional Operation Headquarters must provide service to its oversea affiliated companies or branches in at least three countries excluding Thailand (relaxations apply for the first three years of operation)
  • At least half of the revenue generated by the Regional Operating Headquarters must be derived from service provided to its affiliated companies or branches (relaxations apply for the first three years of operation)
  • The Regional Operation Headquarters must report about its activities to the Revenue Department
  • Other requirements may be imposed by the Director-General of the Revenue Department

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