Branch office setup in Thailand
A branch office lets a foreign company operate commercially in Thailand as an extension of its overseas parent, not as a separate Thai entity. At Thai Visa Centre in Bangkok, we coordinate visas and work permits for branch staff while corporate partners handle DBD registration and foreign business licensing.
A branch can earn revenue and invoice clients, but the foreign parent bears full legal liability for branch obligations. Compare with a Thai limited company or representative office.
Branch is not a separate Thai company; parent bears full liability.
Branch can earn revenue and invoice clients unlike a representative office.
Many foreign business licence categories require at least 3 million THB remitted.
Department of Business Development registers branches nationwide.
What is a branch office?
A branch is registered under the foreign company name and operates as part of the same legal entity. It differs from a Thai limited company, which is a distinct legal person.
Same name as parent
Registered under the foreign company name with branch designation.
No separate shareholders
Parent company controls the branch entirely.
Revenue-generating business
Can conduct commercial activities in permitted scope.
Parent liability
Creditors can reach parent assets for branch obligations.
Registration requirements
| Requirement | Detail |
|---|---|
| Foreign parent | Must be legally registered abroad |
| DBD registration | Branch registration certificate from Department of Business Development |
| Foreign business licence | Required for restricted List 3 activities under the Foreign Business Act |
| Capital remittance | Minimum capital brought into Thailand, activity-dependent |
| Registered office | Thai address for branch operations |
| Branch manager | Appointed representative in Thailand |
Branch activities must fall within the parent company scope and comply with FBA categories. Some activities require Foreign Business Act or BOI promotion for full foreign operation.
Setup process overview
Board resolution
Parent authorises branch establishment.
Appoint branch manager
Power of attorney if manager is abroad.
DBD branch registration
Submit parent documents, translated and legalised as required.
Foreign business licence
Apply if activity is restricted under the Foreign Business Act.
Tax registration
Branch TIN and VAT if applicable.
Capital transfer
Remit minimum capital with Bank of Thailand reporting.
Visa and work permit
For foreign managers and staff assigned to the branch.
Branch vs Thai subsidiary
| Factor | Branch | Subsidiary |
|---|---|---|
| Legal entity | Extension of parent | Separate Thai company |
| Liability | Parent fully liable | Limited to company assets |
| Ownership | 100% via parent | Shareholding structure |
| Tax filing | Branch profits taxed in Thailand | Company-level CIT |
| BOI | Possible for qualifying projects | Common BOI path |
Immigration for branch staff: Foreign employees need a non-immigrant B visa and a work permit sponsored by the branch. TVC handles visa coordination; branch registration is handled by your corporate lawyer. See work permit guide.
Common mistakes
- Confusing branch with representative office (rep offices cannot earn revenue)
- Underestimating parent liability exposure
- Insufficient capital remittance evidence for licence renewal
- Job titles on work permits that do not match licensed branch activities
- Failing to update DBD when branch manager changes
Frequently asked questions
General answers for foreign companies considering a Thailand branch. Confirm specific requirements with DBD and your corporate lawyer before you invest.
Q:Can a branch apply for BOI promotion?
A:BOI promotion is more commonly associated with Thai incorporated entities, but qualifying branch projects may be evaluated. Confirm with BOI before structuring.
Q:How much capital is required?
A:Varies by activity. Many foreign business licence applications require at least 3 million THB remitted per licence category. Verify for your sector.
Q:Can a branch convert to a limited company?
A:Yes, but it involves establishing a new entity, transferring contracts, and closing the branch. Plan early if subsidiary status is likely.
Q:Does the branch need Thai directors?
A:The branch has a manager, not Thai directors in the company sense. Compliance focuses on the appointed branch representative.
Q:What is a branch office?
A:A branch is registered under the foreign company name and operates as part of the same legal entity, not as a separate Thai company.
Q:Who should use a branch?
A:Foreign companies that already operate abroad, prefer consolidated global accounts, and conduct activities permitted under FBA or BOI rules.
Q:What immigration do branch staff need?
A:Non-immigrant B visa from a Thai embassy and a work permit sponsored by the branch with job descriptions matching branch activities.
Q:How does a branch differ from a representative office?
A:A branch can earn revenue and invoice clients. A representative office is liaison-only with no sales income in Thailand.