Branch Office Registration in Thailand

A branch office allows a foreign company to operate in Thailand without incorporating a separate legal entity. Unlike a representative office, a branch office can conduct revenue-generating activities and enter into contracts in the name of the foreign parent company.

Branch offices are commonly used by foreign companies that want a presence in Thailand for sales, service, or project-based operations.

Key Features

• Not a separate legal entity. Branch office operates as an extension of the foreign parent company. This means no directors or shareholders, unlike a private limited company. 
• 100% foreign ownership allowed.
• Revenue-generating activities permitted, unlike a representative office.
• Requires approval from the Department of Business Development (DBD).
• Allows to engage in commercial activities.
• Usually, a Foreign Business License (FBL) is required.

Foreign Ownership Considerations

Foreigners can fully own a branch office, but certain business activities are restricted under the Foreign Business Act (FBA). Companies engaged in such restricted activities may need to obtain a Foreign Business License (FBL) before starting operations.

Restricted activities

Restricted activities that require an FBL prior to engagement by foreign investors may include:

• Service businesses (a broad category covering consulting, advisory, engineering, etc.)
• Wholesale and retail trading (below certain capital thresholds)
• Construction services (except for certain large-scale or specialized projects)
• Brokerage and agency services
• Hospitality and tourism-related services

Registration Process

The registration of a branch office generally involves the following steps:

1. Submission to Department of Business Development (DBD)

To open a branch office in Thailand, the application must be submitted to the DBD, which includes documents, such as the parent company’s certificate of incorporation, memorandum and articles of association, and the board resolution from parent company.

2. Approval from the DBD

Once approved, the branch office is officially registered and can operate in Thailand. Unless permitted, a Foreign Business License (FBL) is required before commencing an operation. 

3. Tax Registration

Register the branch for corporate income tax and, if applicable, VAT with the Revenue Department.

Capital Requirements

The Thai government generally requires a minimum registered capital of THB 3 million for a branch office. This ensures sufficient funding to support the branch’s operations and to meet potential obligations, including employee work permits.

Benefits of a Branch Office

• Allows a foreign company to operate directly in Thailand
• Can sign contracts and generate revenue
• Maintains control under the parent company
• Suitable for project-based operations or temporary market presence

Limitations 

While a branch office can be a practical option for foreign companies, there are some limitations and risks. Importantly, a branch office is not a separate juristic person. This means that the foreign parent company is fully liable for all debts, obligations, and legal claims arising from the branch’s operations in Thailand. 

In addition to complying with Thai accounting, tax filing, and reporting requirements, branch offices must also maintain compliance with the parent company’s jurisdiction. Understanding these limitations is essential when deciding whether a branch office is the right structure for your business. In many cases, a private limited company or BOI-promoted entity may offer greater flexibility and protection.

Why Choose Skyinterlegal 

Establishing a branch office in Thailand requires careful legal and commercial consideration, particularly in relation to liability exposure, licensing requirements, and operational scope. At Skyinterlegal, we provide practical, business-oriented advice to help foreign companies make informed decisions and operate with confidence.

Our strengths include:

Strong expertise in foreign business regulations

We guide clients through the requirements under the Foreign Business Act, including Foreign Business License applications and compliance obligations.

Strategic structuring advice

We do not only assist with branch office registration—we also help you evaluate whether a branch office is the most suitable structure. Where appropriate, we advise on alternative options, such as a private limited company, representative office, or BOI-promoted entity, based on your specific business goals and risk profile.

End-to-end legal support

From preparing corporate documents and liaising with authorities to tax registration and ongoing compliance, we manage the entire process efficiently.

Responsive and client-focused service

We provide clear, timely communication and tailored solutions for international clients entering the Thai market.

With our support, you can confidently establish your presence in Thailand while minimizing legal risks and administrative burdens.

Contact Us

If you are considering establishing a branch office in Thailand or exploring alternative business structures, we are ready to assist. Get in touch with us today for free consultation.