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:finding sources from which the head office can purchase
goods or services in Thailand;
x checking on and controlling the quality and quantity of goods
purchased or hired to be manufactured by the head office in
Thailand;
x giving advice in various respects, concerning goods the head
office sold to distributors or consumers;
x disseminating information concerning new goods or services
of the head office; and
x reporting on business movements in Thailand to the head
office.
Although the representative office business is not expressly
acknowledged in the FBA, the Ministry of Commerce has issued a
Notification and clarification stating that representative offices fall
within the ambit of Schedule Three, Item 21 (Service Businesses) of
the FBA. Therefore, a “foreigner” must apply for a Foreign Business
License in order to establish a representative office.