Setting up a Branch Office in Thailand 設立泰國分公司
Some companies will consider setting up branch offices in Thailand as there is no restrictions to any non-trading activities, which is different from representative office and regional office, and is allowed to earn income. In addition, if the activities of a branch office fall under the categories of Foreign Business Act (“FBA”), would requires to obtain a foreign business license (please refer to our earlier articles at https://0rz.tw/USP8v and https://0rz.tw/0w02G for more information about foreign business license).
There are three business lists under FBA which set restriction for foreigners:
Ø List 1: Businesses which are not allowed to operate by foreigners for special reasons.
Ø List 2: Businesses that are prohibited to operate by foreigners for national safety, security, culture, and environment reasons, unless receiving permission by the Cabinet.
Ø List 3: Foreigners shall be prohibited from operating the businesses in which Thai nationals are not yet ready to compete, unless received permission by the Committee.
A branch office isn’t a separate legal enterprise but is part of a group. In other words, the liability of a branch office isn’t limited within Thailand.
A branch office in Thailand is subject to
Ø Corporate Income Tax 企業所得稅
Ø Withholding Tax 預扣所得稅
Ø Specific Business Tax特定行業營業稅
Ø Value Added tax 增值稅
To register a branch office 欲註冊分公司
Ø All documents must be notarized
Ø Documents submitted to Commercial Registrar must be certified by Thai national
Ø A resident representative should be appointed to cope with tax authorities
Furthermore, the minimum capital to be used by foreigner for commencement of the operation in Thailand shall not be less than 2 million baht. However, if the business does require permission, the minimum capital shall not be less than 3 million baht.
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