Home › Company registration › Regional office (HQ)

Learn more about Regional Office (HQ)

Foreign companies use the regional office to start a business activity in Thailand. Generally, this structure is an extension of their overseas headquarters, just like branche office and representative offices. However, their business activities are limited to 7 activities due to the restrictions of the Thai law. The main advantage of setting up a head office in Thailand is that it is not required to be incorporated and therefore does not have to submit financial statements to the Department of Enterprise Development. With Themis Partner, our Thailand legal structure lawyers will assist you in the entire process of setting up your regional office in Thailand. Contact us for expert advice and assistance.

📄  Related services

Accounting and taxVisa and immigrationCorporate secretaryCompany rent office
Need legal advice ?

Table of contents

  1. What is a Regional Office?
  2. Why create a Regional Office?
  3. What activities are prohibited?
  4. How much to setup a Regional Office?
  5. What are the obligations?

What is a Regional Office?

The regional office is a legal entity established by another foreign company that is not headquartered in Thailand and does not have a registered company in Thailand. This type of structure does not need to be registered as a legal entity under the law of the country of establishment. In general, a transnational corporation is a company involved in the international production of goods or services, foreign investment or management of income and assets in more than one country.

Why create a Regional Office?

The main advantages of opening a regional office in Thailand are that it is not necessary to be a registered company and therefore does not have to submit financial statements to the Business Development Department. Also, they are limited to carrying out seven specific activities. These activities fall under list three of the Foreign Business Act 1999 (FBA). These are:

➤ On behalf of the corporate office, communicate, coordinate and direct
➤ Operating branches and affiliates that are located in the region
➤ Provide consulting and management services
➤ Training and development of personnel
➤ Financial management
➤ Marketing control and sales promotion planning
➤ Product development
➤ Research and development services

What activities are prohibited?

While head offices enjoy several advantages in the Kingdom, they must also respect certain limits. Regional offices must not:

➤ Earn any income from its activities. If it makes any profit, it must be borne by the main office
➤ To have the power to accept a purchase order or to create a sale offer
➤ To negotiate or conclude commercial agreements with any natural or legal person in the Kingdom

How much to setup a Regional Office?

A foreign company may apply for a permit to establish a regional office at the Foreign Affairs Section of the Commercial Registration Department of the Ministry of Commerce. The permit is valid for five years and is subject to a registration fee of THB 5 per THB 1,000 of registered capital (maximum THB 5,000).

What are the obligations?

After a successful application, a newly established head office may be subject to the following conditions:

1. The total financing of the company’s debt cannot exceed seven times the share of capital held by the company’s shareholders or owner.

2. The money used to finance the regional office must come from abroad. During the five years of the license, the company must earn at least THB 5,000,000, of which THB 2,000,000 must be paid in the first year (half of which must be paid in the first six months). After the first year, the company must pay at least THB 1,000,000 every year until the full amount has been transferred.

3. At least one person responsible for the operation of the head office must reside in the Kingdom.

SPECIAL OFFER

Startup

15 Document Package

GET 50% OFF

Essential documents for running your business in Thailand

Share information