Multinational companies wishing to operate their businesses in Thailand might not want to establish a Limited Company. They may instead want to function their business through a branch office located in Thailand. Under Thai law, the branch office is also governed by the Foreign Business Act B.E. 2542 (FBA). That means that in the case where the activities of a branch office fall into one of the categories under the FBA, it requires a Foreign Business License (FBL).
Unlike the Representative Office and Regional Office, Branch Offices under Thai law are not limited to the “non-trading” activities. They are allowed to earn income. The Branch Office’s liabilities arising from the action of the business in Thailand will not be limited within Thailand but extends to the head office overseas.
According to the approval of a Foreign Business License, the capitalization will be calculated from at least 25 percent of average estimated expenses for first 3 years but not less than 3 million baht.
For further details, please contact our Thai corporate lawyers who could provide you with the guidance regarding business establishment.