Regional Office, Foreign Branch Or Thai Company - Which Do I Need?

[bob84uk]

Hi everyone.

I run a UK registered company but am personally based in Thailand. We develop software and I would like to open an office here and employ a handful of local developers. I am unsure whether I can do this as a regional office - if I am not actually selling goods/services in Thailand - or if I must take another route such as foreign branch or a fully registered company. As I will not be earning income here directly I wouldnt expect to be paying Thai taxes, other than anything related to employment. Any advice on what scenario best fits my situation would be greatly appreciated.

Thanks,

Bob

[Soutpeel]

How about a representative office....generally formed to secure goods and services in Thailand for overseas market

My advice go and talk to a lawyer first

UK company sets up rep office to secure services in Thailand for overseas, but think you may be paying tax here in some shape, ie if you want extension of stay you will need to be paying tax and have a mimium salary on the books..ie THB 60k month, but getting your WP will be easier, think you only need two Thai employees

[jazzbo]

You could also just find the right group of developers / programmers and have them set-up their own Thai company which your UK company could then hire as sub-contractors -- also would most likely afford you a non-IMM 'B' doing business in Thailand visa.

[Familyonthemove]

You should speak with the people at the BOI .... they are helpful as they want to encourage businesses to set up in Thailand (and pay some tax)

A regional office is slightly simpler than a full local business ... but you may not be able to invoice local customers ... but this may not be a problem from your outline of the business?

You should also consider if you want to get a Work Premit and a 12 month visa as the issues are linked.

You should really get some professional support as there are many options and it's not easy to change tack later.

[Soutpeel]

You should speak with the people at the BOI .... they are helpful as they want to encourage businesses to set up in Thailand (and pay some tax)

A regional office is slightly simpler than a full local business ... but you may not be able to invoice local customers ... but this may not be a problem from your outline of the business?

You should also consider if you want to get a Work Premit and a 12 month visa as the issues are linked.

You should really get some professional support as there are many options and it's not easy to change tack later.

Believe you are describing a representative office, not a regional office, and correct dont think you can invoice locally, which doesnt appear to be problem for the the OP

Not sure what the BOI could do for him, as he is not really investing in Thailand.

[bob84uk]

Thanks for the help guys. I think I should seek some professional advice then to be sure I dont choose an option that forces me to pay tax, which might be avoided by taking a different approach.

Your suggestion Jazzbo might be a good start short term but probably not some form of ownership long term.

Thanks again

[Soutpeel]

Thanks for the help guys. I think I should seek some professional advice then to be sure I dont choose an option that forces me to pay tax, which might be avoided by taking a different approach.

Your suggestion Jazzbo might be a good start short term but probably not some form of ownership long term.

Thanks again

If you set up in Thailand fully legal, you will be paying some form of tax, for your WP renewal you would need to be showing you are paying income tax

[Sunbelt Asia]

A foreign entity may establish a representative office in Thailand to engage in limited non-revenue-earning activities. These activities are restricted to:

* Searching for local sources of goods or services for its head office.

* Inspecting and controlling the quality and quantity of goods procured by its head office.

* Providing advice in various fields relating to products directly sold by its head office to local distributors or consumers.

* Disseminating information about new products and services of its head office.

* Reporting to its head office on local business developments and activities

A better choice may be to apply through the Board of Investment as Information Services are covered there.

Sunbelt Asia advisors can help you choose the appropriate category for you business.

www.sunbeltlegaladvisors.com