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Overview of Types of Business Organizations

:: Partnerships
:: Limited Companies
:: Public Limited Companies
:: Other Forms of Corporate Presence
:: Alien Business License

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Types of Business organizations - Other Forms of Corporate Presence

Representative Office

To establish a representative office, approval from the Department of Commercial Registration of the Ministry of Commerce under NEC 281 is necessary. The representative office must have the purpose of acting as a liaison office of the parent company, gathering commercial information, procuring goods and checking quality of goods purchased by the parent company. The representative office cannot record revenue or income for any transactions between customers in Thailand and its head office overseas. The representative office is permitted for a period of five years.

Documents required include:

:: Certificates of incorporation ( Memorandum of Association and articles of Association and the Certificate of Incorporation showing foreign incorporation.
:: Power of Attorney which appoints a person to be in charge of the operation in Thailand together with a Thai translation.
:: A work permit for a foreign manager of representative office must be submitted to the Department of Commercial Registration.
:: Letter describing the details of the project, activities performed by the representative office, planned period of business.
:: Lease agreement of the premises of the business

There must however be a remittance of foreign currency to be used for the approved activities in Thailand not less than Baht 5,000,000, providing the first year will not be less than Baht 2,000,0000 (one million in the first 6 months)The money must be remitted after approval and be used for the company expenses in Thailand. At least one person responsible for the operations in Thailand must be a domicile in Thailand

Branches of foreign companies

In order to open a branch office, a license must be obtained from the Ministry of Commerce under the Annex of Alien Business Act 1999. The scope of the activities are to be the same as defined in the Memorandum of Association of its principle office overseas. The Registrar will consider giving a license under the following conditions:

1.) A business, which requires special knowledge or skills which Thai's do not readily possess;
2.) Such business shall not compete with businesses operated by Thai's;
3.) The business shall use foreign knowledge or capital;

4.) The business shall provide benefit to Thailand in the following ways:
- Bringing in new technology.
- Causing the full use of natural resources.
- Supporting the export of Thai goods.


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