Work Permit for Foreigners Working in a Branch Office in Thailand

In this post, we talk about getting a work permit for Foreigners working in a branch office in Thailand. Foreigners can use their existing company overseas to operate as a branch office, instead of registering a new Thai limited company, provided that it has obtained a Foreign Business License from the Department of Business Development, Ministry of Commerce, to operate the permitted businesses here. The rule is different to get a work permit for foreigners working in a branch office in Thailand from normal Thai limited companies.

Thailand Foreign Business Law requires the head office to send to its branch office at least THB 3 million minimum capital per business type. For instance, if the branch would be doing retail and wholesale of products, then it has to obtain the permission to operate 2 business activities. Therefore, the head office needs to remit THB 6 million capital to the branch office. But if the branch office is permitted to do 1 business type only, then at least THB 3 million is required.

When hiring a foreigner, the branch office needs to hire only 1 Thai employee for each work permit, unlike in a Thai limited company, which has the ratio of 4:1. However, the rule to get work permits for a branch office is that it needs to have THB 3 million for each work permit while a Thai limited company is required to have a registered and paid up capital of at least THB 2 million. Thus, if the branch hires 2 foreigners, it must have 2 Thai staff and THB 6 million capital. So even if the branch office does 1 business type only and is required to have at least THB 3 million capital per Foreign Business Law, it still needs to add more capital and Thai staff depending on how many foreigners it will hire.

Whether it’s a branch office or representative office, foreigners must understand that the rules for business registration are different from work permit rules. Therefore, to avoid confusion and misinformation, you must consult with experts on Thailand laws. Contact ThaiLawyers now for assistance in company registration and ThailandWorkPermit.

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