Opening a Representative Office in Thailand Just Got Easier

Opening a Representative Office in Thailand Just Got Easier

A “Representative Office” allows a foreign investor to evaluate potential market opportunities without the need to establish a subsidiary in Thailand. Thus, it provides an interesting vehicle for foreign investors who may be considering entering the Thai market.

Foriegn Investment Ally Law

Thailand has recently made the set-up process of such an office more investor friendly. Previously, prior to operating, a representative office was required to obtain a “Foreign Business License” because, under the Foreign Business Act of 1999 (the “FBA”), its permitted activities were considered a “service” reserved to and for Thais and prohibited to foreigners without such exemption.

This requirement has been abolished. Under 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 considered such a service.

Thus, a representative office is now permitted to provide its specified services without the need to apply for a foreign business license. This is good news for foreign investors who would like to open a representative office, because the exclusion will now allow for an expedited and more efficient set-up procedure.

For more information about businesses entering the Thai market, please contact your Ally Law corporate and international business lawyer.

Click here to read the full article by Ally Law member firm Duensing Kippen Ltd.

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