Branch Office
If you have a company that wants to start doing business in Thailand, a branch office might be right for you. Branch offices are similar to limited companies. Although the office does not have directors and shareholders. and not a listed company The office is an extension of the parent company. by the same name to do the same business

Advantages of branch offices

Branch offices offer businesses a number of benefits. First, setting up a branch office is easier than registering a new business. You don’t need to fill out as many paperwork as with a new business.

Branch offices do not require registered capital. But there is a minimum capital increase requirement.

Branch offices can generate profits for the parent company. Unlike a representative office can make profit by himself which is considered to have the potential to expand a lot of profits in Thailand

Maintaining branch office status is easy. Where the branch office must show the list and pay the tax according to the bill. This makes day-to-day operations much easier.

Disadvantages of branch offices

Learn about the disadvantages of branch offices before you make a decision. whether it suits you or not If a branch office is not the best option, please contact Pongpanich Accounting to discuss suitable alternatives.

First, a branch office is not a juristic person. The parent company is responsible for the office. It is essential to have the correct representation. in order not to harm the parent company directly

In addition, the scope of business is limited. Branch offices are not permitted to import or export and must only operate within the scope of the parent company. Expansion is not allowed. When using a branch office Companies that want to expand their operations must open different types of businesses in Thailand.

Finally, a branch office may establish a permanent establishment. Therefore, there are tax implications for the parent company as well.

Legal requirements

Companies must obtain a foreign business license before opening a branch office in Thailand. Once the application has been approved Will be reviewed by the International Business Committee.

The Thai government does not require a registered capital. But with a minimum capital of 3 million baht, the parent company must comply with the requirements. When bringing capital into Thailand, at least 25% of the capital within the first three months, 50% after opening an office within one year, and the remaining 25% due the following year.

If the company intends to open a branch office less than three years All grants must be sent to Thailand within six months of opening the office. If the requirements are not met The government can close branch offices.

Time to set up a branch office

If you choose to set up a branch office yourself you will encounter difficulties It’s all about getting the paperwork right, and if it’s rejected, you’ll have to start all over again. Luckily, with Pongpanich Accounting, you can be sure everything will go smoothly.

Just start by applying for a business license. The process is quite complicated. You’ll need to describe your business in detail. including business scope, size, and information about employees

The application must collect documents from the parent company. including a list of directors and company regulations

Branch offices Branch representatives must be present in Thailand. The parent company must submit a power of attorney indicating to the representative. who can represent the business

The application must submit information about the agent. If the agent is Thai A copy of the representative’s ID card must be attached. If the agent is a foreigner Attach a copy of your passport. Representatives from abroad with a visa too.

Must specify the location of the office. Many people choose to send a map with them afterwards. The Department of Commerce’s office will review the application. and sent to the Foreign Business Committee The committee will consider the factors in 5 steps before approving or denying the application.

After an office of the Ministry of Commerce reviews the application, it will be sent to the Foreign Business Committee. The committee considers five factors before approving or denying applications.

The first step is to consider how useful this business is. Or is it a danger to national security? The application must show that the branch office will be an asset rather than a liability.

second step The committee will consider whether the branch office will contribute to social and economic development. The company must explain it in the application form.

third step Determining whether a branch office is a country fit It looks at art, culture, morality, and other factors. absolutely necessary In the application, it must explain why this office Therefore, it is appropriate to be located in Thailand.

fourth step Consider factors that may affect the country, such as conservation efforts. consumer protection and employment opportunities These factors should be stated on the application.

fifth step Will the Technology, Research and Development Review Committee branch office help me? If so, it must be included in the application.

Every step has a lot of detail and complexity. If you want the process to run smoothly Let the legal team of Pongpanich Accounting Legal team help you. both preparing and submitting applications for approval in the first place To be ready to do business in Thailand, let Pongpanich Accounting follow up the process for you quickly.

Contact Pongpanich Accounting to get a quote. We will then start preparing your application.