If you are interested in setting up a branch office in Thailand, our company formation experts can assist you with the legal matters.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Civil, criminal, tax liability under Thai law. The branch is also subject to licensing and control laws. |
Best Used For | Expanding a foreign company’s activities in Thailand and performing the exact activities as the parent company. |
| Minimum share capital (YES/NO) | Not less than 3 million baht. Minimum capital remittance conditions apply. |
| Time frame for the incorporation | 1 week |
| Management (Local/Foreign) | Locally appointed branch representative in Thailand, observing the indications of the foreign managers. |
| Legal representative required (YES/NO) | Yes. At least one of the appointed individuals must be domiciled in Thailand. |
| Local bank account (YES/NO) | YES |
| Independence from the parent company | NO |
| Liability of the parent company | Complete liability |
| Corporate tax rate | 20% |
| Possibility of hiring local staff (YES/NO) | YES |
| Mandatory branch name requirements | Remains the same as the parent company’s name. |
Branch name restrictions | Cannot be the same as other registered company names, cannot be offensive. Other conditions can apply. |
Branch Memorandum and Articles of Association | The parent company’s constitutive documents are submitted as part of the required documents. |
| Other documents | Information about the parent company’s financial status (recent accounts, and others as needed), identification documents for the Thai branch representatives, etc. |
| Special licenses | The branch will be required to obtain a foreign business license. |
| Legal capacity | The branch has no legal capacity in Thailand. |
| Procedural capacity | No, a Thai branch cannot defend itself in the course of court proceedings. |
| Judicial capacity | No |
| Minimum number of employees for the Thai branch | There is no prescribed minimum |
| Can the representative office be used instead of the branch? | The representative office cannot be used to fully fulfil the role of the branch. In all cases, the liaison office will need special permissions and approvals before it can conduct its activities in Thailand. |
| Mandatory foreign company size | Not applicable, however, the foreign company does need to be able to sustain the applicable minimum capital requirements for its Thai branch. |
Table of Contents
What are the main traits of a branch office?
The list below highlights the main traits of the branch and characteristics that set it apart from the subsidiary or the limited liability company. Investors are advised to keep these in mind when choosing to open this business form, especially the one referring to liability.
- Easy incorporation: the branch is easier to set up compared to a local company, an advantage for foreign businesses.
- Limited independence: in terms of independence, the branch is only partially independent in relation to the foreign company.
- Liability: the foreign company is liable for the debts and obligations of the Thai branch; this also extends to lawsuits brought against the branch.
- Tax: the branch is taxed at the usual corporate income tax rate, but only on the profits derived from the country.
What should foreign companies know about operating a branch in Thailand?
Branches in Thailand operate as per the Foreign Business Act and as per the existing limitations concerning the business fields in which legal entities can and cannot be operated by foreign nationals. One important issue to take into consideration is that, for the branch, as opposed to a limited company, there is no need to bring in a Thai national who will act as a local shareholder.
This is a requirement for companies in some fields, and investors who are interested in opening companies other than branches should be well aware of the requirements that exist in this sense.
What else should I know about branches in Thailand?
Branch offices in Thailand are treated similarly to limited companies, only there are no shareholders or directors, as it is not a registered company, but a local branch of a foreign Head Office.
The branch is essentially an extension of the parent company. It must have the same business name and enter into the same types of business activities. Unlike a subsidiary, it cannot enter into other types of activities apart from those already performed by the Head Office.
What are the requirements for Thai branches in 2026?
The main requirements are as follows:
- The minimum capital must be remitted in Thailand within six months when the period for which the branch will be doing business is less than three years.
- When the branch will be doing business for more than three years, at least 25% of the capital must be remitted within the first three months, and half of this capital is to be remitted within the first year of the operations.
- This capital is to be converted from foreign currency to Thai Baht at the appropriate conversion rate according to the date of the transfer.
If you want to learn more about how to set up a branch in Thailand, please read the infographic below:
What documents are required when registering a branch in Thailand?
When registering a branch, the following documents are required:
- Information about the business: a letter describing the business activities for which the branch applies, including information about the business field, size, employees, etc.
- Copies of the parent company’s documents: the Articles of Association, the list of directors, as well as any supporting documentation.
- Power of attorney: issued by the foreign company to appoint the branch representative in Thailand.
- Representative’s documents: copies of the representative’s passport or other identification documents (the ID card if he is a Thai national).
- Visa: when needed, for the foreign branch representative, a copy of the temporary visa.
- Registered office: the exact location of the branch’s registered office in Thailand (can be a map).
- Others: included here are other powers of attorney, as needed, for example, in case a consultant is the one who submits the application.
We invite you to watch a short video on Thai branches:
How does a branch compare to other business forms?
Opening a branch is not the only way for a foreign company to establish a presence in Thailand. Depending on its objectives and planned activities, the company may also choose a representative office or a subsidiary.
- Representative office: This is the most restricted option, as it cannot carry out commercial activities. It can be used for market research, consulting activities, and gathering information about customers, suppliers, and local market conditions.
- Branch or subsidiary: After completing its market research, the foreign company may establish a branch or a subsidiary to carry out business activities in Thailand.
- Licensing and capital: Due to the non-commercial nature of its activities, a representative office generally does not require a foreign business license. However, it must comply with the minimum capital requirements set out in the Foreign Business Act.
What tax registrations does a branch office need in Thailand?
If you are a foreign citizen who is setting up a branch in Thailand, you must apply for a Thai tax identification number within 60 days. The application is filed with the Revenue Department office responsible for the branch’s place of business.
If your branch carries out activities subject to VAT and your annual turnover exceeds the threshold of 1.8 million THB, then you will need to register for VAT purposes within 30 days of exceeding the threshold. After registration, you are required to issue tax invoices in the branch and to submit a monthly VAT return, using the VAT 30 form, no later than the 15th day of the following month.
Can a branch office employ foreign personnel in Thailand?
A branch in Thailand that intends to employ foreign managers or specialists must ensure that each individual holds the appropriate visa and, in most cases, a valid work permit before starting work in this country. The permit identifies the employer, job title, and place of work and must be updated if the employee’s role or employer changes.
The employer generally sponsors the application and provides supporting documents relating to the business and the proposed position. Work-permit applications, renewals, and related procedures can be handled through the Department of Employment’s e-Work Permit system, while BOI-promoted operations follow the applicable BOI procedure.
If you need comprehensive information regarding the whole process of setting up a branch office in 2026, please contact our company registration consultants in Thailand for support.