5.3 Branch Offices
A foreign enterprise may establish a branch office in Thailand. Such
branch office, in terms of its status and liability, is considered the
same legal entity as its head office overseas. The branch can carry on
any or all the activities within the scope of the head office’s business
objectives.
There are no laws or regulations that specifically address the
establishment or registration of the presence in Thailand of a foreign
branch office. There is no branch registry. The only filings,
registrations, or licenses required for a branch office in Thailand are
those prescribed under other relevant laws, such as the Commercial
Registration Act, FBA or the Revenue Code.
A branch office of a foreign company is considered a “foreigner,” just
like its head office. Depending on the nature of the business it intends
to carry out in Thailand, the branch office will be subject to
prohibitions and restrictions under the FBA, and may be required to
obtain a Foreign Business License. A branch can also enjoy protection
under the U.S. Treaty, if it so qualifies. The Revenue Code requires
that branch offices obtain taxpayer ID cards and register as VAT
operators, on the same basis as locally incorporated companies.
5.4 Representative Offices1
A foreign enterprise can establish a representative office in Thailand
with the primary function of providing information and assistance to
its foreign head office. A representative office has a limited scope of
activity, in that it may only provide the following support services to
its head office located offshore: