
A regional office of a multinational corporation may also be established to coordinate and direct the operation of the branches and affiliates of the head office in the region on behalf of the head office.
A regional office has the ability to coordinate and supervise the company's branches and its affiliated companies in the region on behalf of the head office. The regional office may provide these branches and affiliated companies with:
- Advisory and management services
- Financial management services
- Training and personnel development services
- Marketing control and sales promotion plans
- Product development
- Research and development services.
Benefits from Establishing a Regional Office
Companies establishing regional offices are eligible to receive BOI non-tax incentives, such as permission to own land and to bring in foreign experts and technicians, as well as an attractive range of tax-based measures awarded by the Revenue Department at the Ministry of Finance. Inquire at the Ministry of Finance for details. Such companies are not required to be registered or incorporated as juristic persons in Thailand, and do not have to submit any financial statements to the Department of Commercial Registration. The Department will assist in customs clearance of the personal effects of transferred foreign staff and in their applications for further temporary stay in the Kingdom or change in visa type. Work Permits for aliens performing work in the regional office will be granted for up to 5 persons depending on necessity and volume of work in each particular case.
Conditions for Permission to Establish a Regional Office:
- Regional Office must not:
- Derive any income from its activities. Expenditures incurred by the regional office shall be borne by the head office
- Have the power to accept a purchase order or make a sales offer
- Negotiate or enter into business arrangements with any natural or juristic person within the Kingdom.
A permit to establish a regional office, valid for five years, can be granted after application with the Alien Business Section of the Department of Commercial Registration at the Ministry of Commerce. The fee is five baht per every 1,000 baht of registered capital, not to exceed 5,000 baht.
When a permit to establish a regional office is issued, it may be subject to the following conditions:
- The total debt financing used in the business shall not exceed seven times the portion of the capital owned by shareholders or the owner of the business
- Money used in the regional office shall be remitted from abroad and shall not be less than a total of 5,000,000 baht. During the first year period, at least 2,000,000 baht of the total must be remitted, at least half of which must be remitted within the first six months. Then, no less than 1,000,000 baht should be remitted each succeeding year until the full 5,000,000 baht has been transferred. Documents verifying this transfer must be presented to the Department of Commercial Registration
- At least one person who is responsible for operating the regional office must have their domicile in the Kingdom.
The Director-General of the Department of Commercial Registration is also authorised to impose any conditions on a business permit granted under the rules. |

F. Regional Trade and Investment Support Offices
In April, 1996, the Board of Investment announced the establishment of trade and investment support offices would become a new category of activities eligible for investment promotion.
Projects in this category are eligible for BOI non-tax incentives, including:
- Permission to own land for an office
- Permission to bring in foreign nationals to undertake investment feasibility studies
- Permission to bring in as many foreign technicians and experts as required
- Permission to take or remit foreign currency abroad
- No limit on number of shares owned by foreigners.
- The range of activities eligible for promotion are:
- Controlling and advising affiliated companies
- All types of consulting services, except those engaged in:
- Buying and selling securities
- Foreign currency exchange
- Accounting
- Advertising
- Legal affairs
- Architecture
- Civil engineering.
Note: Exceptions may be granted by permission from the Department of Commercial Registration or concerned government agencies
- Information services related to sourcing and procurement, but not brokerages or agencies
- Engineering and technical services, except these related to architecture and civil engineering
- Testing and certifying standards of products, production and services standards
- Exporting of all types of products
- Wholesaling of all types of products within the country, excluding local agricultural products, arts & crafts, antiques, and natural resources
- Provision of training on the use of machinery, engines, tools, and equipment
- Installation, maintenance, and repairing of machinery, engines, tools, and equipment
- Calibration of machinery, engines, tools, and equipment
- Computer software design and development.
If there are any other activities deemed appropriate for investment promotion under the Establishment of Trade and Investment Support Offices, the Office of the Board of Investment will consider them on a case-by-case basis.
Eligibility for regional trade and investment support offices.
Applicants must be either companies established under Thai law, or companies planning to establish under Thai law.
Conditions for regional trade and investment support offices:
- Operating licenses must have been acquired from all relevant government agencies
- Operating expenses must amount to no less than 10 million baht per year, which shall consist of sales and administrative expenses, as set forth in the Revenue Code
- Operating plans must be approved by the Board of Investment
- Majority or total foreign ownership is allowed
- Non-tax privileges, only, will be granted.
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