LegalStructure
Representative Office: When It Makes Sense
Siam Advice Firm•Legal Analysis
Not every business needs a full operating company in Thailand. Sometimes a Representative Office is the perfect fit.
What is a Representative Office?
A Rep Office is a liaison office that acts on behalf of a foreign parent company. It's designed for non-revenue activities.
What You CAN Do
- Market research and data gathering
- Quality control for Thai suppliers
- Coordinate with distributors/agents
- Source products for the parent company
- Support promotional activities
What You CANNOT Do
- Generate revenue directly
- Sign contracts in Thailand
- Provide paid services to Thai customers
- Conduct trading activities
Key Advantages
1. Simple Setup
Less documentation and faster registration than a full company.
2. Lower Capital
No 2M THB per foreigner requirement.
3. Easier Management
Less complex compliance and governance.
4. Market Testing
Perfect for exploring the Thai market before full commitment.
Key Limitations
- Maximum 3 foreign employees
- Revenue generation is prohibited
- May need to upgrade if you exceed limits
When to Choose Rep Office
Good fit if:
- You're researching the Thai market
- You need to support distributors/partners
- Your revenue stays with the foreign parent
- You only need 1-3 expat staff
Upgrade needed if:
- You want to sell directly to Thai customers
- You need more than 3 foreign staff
- You want to access BOI benefits
Related Service: Company Registration & Legal Services — We handle Rep Office setup and upgrades.
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