Application for establishment of a Regional Office

Activities of regional offices are service businesses under List three (21) of the Foreign Business Act B.E. 2542 (A.D. 1999). Regional office is established by a transnational corporation in a country other than the country where it is registered as the head office, without having to be registered as a juristic person under the law of the country of establishment.

A regional office can carry out only business activities:

1. Communicating, coordinating and directing, on behalf of the head office, the operation of branches and affiliates that are located in the region.
2. Provide services in consulting and management.
3. Training and personnel development.
4. Financial management.
5. Marketing control and sale promotion planning.
6. Product development.
7. Services in research and development.

General characteristics of the Regional Office

1. Must already have at lease one established branched office or affiliate in the Asian region.
2. Non revenue-generating activities.
3. No authority to accept purchasing order or to make offer selling or to negotiate for carrying out of business with persons or juristic persons on the country in which it is established.
4. All expenditures incurred by the regional office must be borne by the head office.
5. It is not subject to corporate income tax, in accordance with the revenue code except deposit interests of remitted funds from the head office has to pay tax.

'Transnational Corporation' refers to a legal entity set up under foreign law to do business in another country.