Representative Office

Foreign companies that intend to conduct marketing or business support in Thailand can set up a Representative Office. The office cannot generate revenue but does important support for the head office. The Representative Office relies completely on the head office for capital and operating expenses as it is unable to generate revenue.  The Representative Office does not have to hire 4 Thai nationals for each foreign employee.

Benefits
Most companies want to enter the Thailand market but do not feel comfortable going through the trouble of setting up as a Thai business, finding a Thai national to trust with 51%. One of the biggest benefits of setting up a representative office is that a company with HQ elsewhere can set their roots in Thailand, while conducting non-revenue generating activities within Thailand.

There is no need to have 4 Thai nationals to every foreigner employed and the office itself is not subject to corporate income tax given it is not actively generating revenue.