Thai Limited Company vs Representative Office: Choosing a Structure
Foreign groups entering Thailand usually choose between trading through a locally incorporated company and maintaining a non-trading liaison presence. The difference is not cosmetic: it decides whether you can invoice at all.
In short
A Thai limited company can trade, invoice and employ, and is the default for revenue-generating activity, with shareholding and foreign business rules to plan around. A representative office may only carry out non-trading liaison activities such as sourcing, quality control and reporting to the head office, and cannot earn income in Thailand.
Side-by-side comparison
| Criterion | Thai limited company | Representative office |
|---|---|---|
| Can generate revenue | Yes | No |
| Permitted activities | Any lawful business, subject to foreign business rules | Five non-trading liaison activities only |
| Ownership | Thai majority unless licensed or treaty protected | 100 percent foreign owned |
| Funding | Registered capital and revenue | Head office remittance, minimum capital schedule |
| Work permits | Available subject to capital and staff ratios | Limited number tied to the office |
| Corporate income tax | Yes, on profits | No taxable income if activities stay within scope |
| Accounting duties | Full statutory accounts and audit | Accounts and audit still required |
| Set-up time | Around 2-4 weeks | Longer, documents from the head office must be legalised |
Choose Thai limited company when
- You will invoice customers or hold inventory in Thailand
- You need to hire a local team at scale
- You want a vehicle that can later apply for BOI promotion
Choose Representative office when
- You only need sourcing, quality control or market reporting
- The group wants full foreign ownership without local trading
- You are testing the market before committing to a trading entity
Frequently asked questions
- Which head office documents need legalisation?
- The certificate of incorporation, articles, board resolution and the appointment letter, legalised in the home country and translated into Thai.
- Can a representative office sign contracts?
- No. Signing sales contracts or receiving payment falls outside its permitted scope and can lead to penalties.
- Can we convert later?
- You cannot convert the entity, but you can incorporate a company alongside and wind the office down in an orderly way.
- Where do we start?
- Tell us the intended activity and ownership. We map it against the Foreign Business Act before any filing. Contact us by phone, LINE @NAATI or email.
Not sure which route your document needs?
Send scans and the receiving authority's checklist on LINE @NYC168 or by email, and our team will confirm the correct route and a written quote before any work starts.