Thailand Eases Requirements for Representative Office

Thailand has recently streamlined the  representative office registration process.   Previously, a Representative Office was required to obtain a “Foreign Business License” before operating.  A foreign business license allows foreign limited companies to engage in businesses activities. that would normally be prohibited to foreigners.

Pursuant to the Ministry of Commerce’s, new regulation, Ministerial Regulation No. 3 “Prescribing Service Businesses Which Do Not Require a Foreign Business License” (2017) of the FBA the operation of a Representative Office is no longer prohibited byu the Foreign Business Act.  Therefore a foreign business license is not required..

This new regulation will allow foreign businesses to open representative offices in Thailand more quickly and easily.  Investors are forewarned however that a  representative office is not allowed to receive income from sales within Thailand, and its permitted activities are very restricted to “support services” for the mother country located abroad.

 

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