In order to promote Thailand as the region’s commercial center, in 1992 the Prime Minister’s office passed a regulation facilitating the formation of regional offices in the Kingdom.
A Regional Office is established to supervise and coordinate the company’s branches and its affiliated companies in the Asia region on behalf of the head office aboard. It is not an independent legal entity separated from the head office.
Companies establishing a Regional Office are not required to be registered or incorporated as a juristic person in Thailand.
The Regional Office renders services to the head office, affiliated company, or group company without receiving income. All expenditures incurred by the Regional Office must be remitted from aboard, in a total of at least 3 million Baht.
The Regional Office may undertake one or more of the approved activities, as following:
• Communicating, coordinating and directing the operation of branches and affiliates that are located in the region
• Providing services in consulting and management
• Training and personnel development
• Financial management
• Marketing control and sales promotion planning
• Product development
• Services in research and development.
It has no authority to receive purchase orders, to make offers for selling, or to negotiate on business with any natural or juristic person within the Kingdom.
The Regional Offices must obtain a registration number from the Department of Business Development (DBD), Ministry of Commerce before commencing activities in Thailand. This process is not complicated and it takes only a few business days. At least one of the persons responsible for operating the Regional Office must have a domicile in the Kingdom.
Since it’s not generating income, the Regional Office is not subject to corporate income tax, except for the deposit interest of remitted funds from the head office.