Representative Office in Thailand
Having a Representative Office in Thailand is one of the easiest ways to enter the Thai market. Representative offices are a non-profit organization and are treated as a subsidiary of a foreign company’s parent company. They act as a liaison between a foreign company and the Thai government. They provide information, advise and facilitate the import of goods from Thailand. They also report on business activity in Thailand. They are authorized to perform certain services, such as consulting and research, and can also promote their products.
Whether a foreign company wishes to establish a representative office in Thailand or not, it must first apply for an alien business permit. The company must submit several documents to the Department of Commercial Registration. It must also explain the necessity of setting up the office. It must also state how the activities of the company will affect the Thai economy. It must also list prospective employees and describe the functions of the company. It must also include a business plan.
Before a Representative Office can be set up, it must have a manager. This person must have a national ID and a household registration certificate. He or she must also have a power of attorney that has been notarized. This power of attorney must provide the manager with the authority to interact with the Thai government. He or she must also sign all documents and certifications.
Representative offices may be registered with the Department of Business Development in Thailand. The application process is fast and simple. The company must submit several documents, including an affidavit that includes the company’s name, directors, shareholders and office plans. It must also grant power of attorney to the office manager. It must also state the effects of the Representative Office on the Thai economy.
Representative Offices in Thailand may have up to five work permits. Each work permit can support two to five positions, including informational, quality control, and administrative positions. The representative office must submit an audited financial statement to the Department of Business Development. It must also report on the sale of new goods or services based on business trends. In addition, the representative office must receive subsidy from the head office to cover the expenses of operating the representative office in Thailand. It must also provide advice about the goods sold to agents and distribute information about new goods.
Representative Offices in Thailand are 100% foreign-owned. They must not engage in activities that are prohibited by the Foreign Business Act. They cannot generate income from activities in Thailand, make sales offers, negotiate business terms with individuals, or receive purchase orders. They must also report their activities to the Revenue Department. They are not required to pay taxes on their salaries, but they must report their income tax returns.
Representative Offices in Thailand must obtain a Corporate Tax Identification number (CTI) and an alien business permit. They must also submit their income tax returns and audited financial statements to the Revenue Department. Representative Offices may have up to three foreign work permits. They can also hire up to four Thai employees for each foreign employee.
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