A representative office lets a foreign company run a Thai presence limited to five permitted activities — sourcing, quality control, customer advice for the head office's products, information dissemination, and market reporting. It may not earn revenue or sign sales contracts in Thailand; all expenses must be funded by remittances from the head office. Registration with the Department of Business Development is required before operating.
Last reviewed: 2026-10-10 · General information only, not legal advice for your specific case
What a representative office is — and what it may do
A representative office is a Thai presence for a foreign juristic person that does not intend to earn income in Thailand directly. Thai law permits exactly five activities: sourcing goods or services in Thailand for the head office; inspecting and controlling the quality and quantity of goods the head office buys or has manufactured in Thailand; advising distributors or users about the head office's products; disseminating information about the head office's new products or services; and reporting business trends in Thailand to the head office.
The most important restriction: a representative office may not earn any revenue in Thailand, may not conclude sales contracts or negotiate business on its own or others' behalf, and may not provide services to third parties. Every expense must be funded by money remitted from the head office abroad.
Because of this, the structure fits companies that need only a liaison point, market research, or quality control. Anyone intending to sell goods or services in Thailand should consider a branch or a subsidiary instead.
- Permitted: sourcing, quality control, advising the head office's customers, information dissemination, market reporting
- Prohibited: earning revenue, signing sales contracts, issuing invoices, serving outside parties
- All expenses must come from head-office remittances
- Registration is required before starting operations
Representative office vs. branch vs. subsidiary
The right structure depends on what the parent company wants to do in Thailand. A branch office may earn revenue but the parent bears unlimited liability for its debts. A subsidiary is a separate Thai juristic person that shields the parent, at the cost of full corporate compliance. A representative office is the lightest option — and the most limited.
| Issue | Representative office | Branch | Subsidiary |
|---|---|---|---|
| Earn revenue in Thailand | No | Yes (per licence) | Yes |
| Legal status | Not separate from parent | Not separate from parent | Separate Thai juristic person |
| Parent liability | Full | Full | Limited to share value |
| Permitted activities | Only the 5 statutory activities | As licensed | Per objectives and licences |
| Best for | Liaison, market research, quality control | Specific project work | Long-term full operations |
Key registration conditions
Representative offices are supervised by the Department of Business Development (DBD), Ministry of Commerce. Registration requires a representative residing in Thailand and evidence of capital meeting the Ministry's minimum for foreign business operations, remitted in instalments according to the prescribed schedule.
A representative office also carries tax and labour duties despite having no revenue: obtaining a taxpayer ID, withholding tax on salaries, registering as an employer with the Social Security Office, and securing work permits for foreign staff — with Thai-employee ratio conditions that differ from ordinary companies.
Registration steps
1. Define the activity scope
Confirm the planned work falls within the five permitted activities and prepare a detailed description for the application.
2. Prepare head-office documents
Certificate of incorporation, articles of association, director list, and a power of attorney for the Thai representative — all notarised and translated into Thai.
3. File the application
Submit the application with supporting documents to the DBD, together with the capital remittance plan.
4. Receive the registration number
Once approved, obtain a taxpayer ID, register as an employer, and open a bank account for head-office remittances.
5. Ongoing reporting
Keep income-and-expense accounts, file withholding tax returns, and report changes to the DBD as required.
Documents to prepare
Nearly all core documents originate from the foreign head office. Applications most often stall over incorrectly notarised or translated paperwork, so preparing the full set correctly from the start keeps the process smooth.
- Certificate of incorporation of the parent company (notarised and translated into Thai)
- Articles of association or memorandum of the parent company
- Power of attorney appointing the representative office manager in Thailand
- Passport or ID copy of the representative office manager
- Evidence of the Thai office address, such as a lease
- Activity description, staffing plan, and capital expenditure plan
Common mistakes
The first mistake is assuming a representative office may 'sell a little on the side.' It may not — a single revenue transaction can expose the office to charges of operating an unlicensed business. The second is paying expenses with locally sourced funds, when the law requires all expenses to be covered by remittances from abroad.
The third is neglecting tax and social security duties on the assumption that 'no revenue means no obligations.' In fact, paying salaries triggers withholding tax filings, and employing staff requires social security registration. Ignoring these duties carries fines under Thai law.
Tax and reporting duties of a representative office
A representative office earns no income in Thailand because it may only perform permitted activities such as sourcing information, following up purchases and coordination. It still has tax duties as an employer, however: withholding tax on staff salaries, filing the related returns, and in some cases VAT registration under Revenue Department rules.
The office's expenses must be funded by remittances from the head office abroad, with clear transfer evidence for the authorities. Systematic bookkeeping is therefore essential even though the office generates no revenue.
Hiring staff and work permits
A representative office may hire Thai staff. Any foreign national working at the office needs a work permit, subject to capital and Thai-to-foreign staff ratio conditions under the applicable announcements.
The employer must register employees for social security within 30 days of hiring and comply with labour law on working hours, rest days and welfare like any other employer. Neglecting these duties carries penalties and can affect work permit renewals for foreign staff.
Closing a Representative Office
When the parent company decides to end the representative office's operations, it must notify the Department of Business Development and related agencies, settle tax liabilities and file final financial statements. Any employees must receive severance and statutory entitlements in full. An incomplete closure can leave the parent company liable for outstanding obligations.
Some closure documents must be certified and translated for the parent company's home authorities. Plan the closure at least one quarter ahead to cover every agency.
Frequently asked questions
Can a representative office sell goods or services in Thailand?
No. It may not earn revenue, sign sales contracts, or serve third parties — only the five statutory activities are permitted.
Is there a minimum capital requirement?
Yes. The Ministry of Commerce prescribes a minimum capital for foreign business operations, remitted in instalments on a set schedule. Check the current announcement before filing.
Does a representative office pay corporate income tax?
With no revenue it generally has no corporate income tax on trading, but it must still withhold tax on salaries and certain payments and file the required returns.
Can it employ foreign staff?
Yes, with proper work permits, subject to Thai-employee ratio conditions that differ from ordinary companies.
What if we want to sell in Thailand later?
You would convert to a branch or incorporate a subsidiary and obtain the relevant licences, such as a Foreign Business License. A representative office cannot simply expand its scope.
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