Yes. This is the principal commercial distinction between a Branch Office and a Representative Office. A Branch Office is a trading entity and is authorised under its Foreign Business License to generate revenue, enter into commercial contracts, and conduct the business activities specified in its FBL. Revenue is subject to Thai corporate income tax at a rate of 20% on net profit, with potential relief available under applicable tax treaties.

The end-to-end process — from initial document preparation through to Foreign Business License issuance — typically takes 8 to 14 months. The extended timeline reflects the multi-step document legalisation process (notarisation, consular attestation, and Ministry of Foreign Affairs certification), the preparation of the business plan and declaration, and the DBD's own review and assessment period. Delays in document preparation in the home country are the most common cause of timeline extensions.

The Foreign Business Act requires a minimum total capital of THB 3,000,000 to be remitted into Thailand. This capital is brought in over time in tranches: the first tranche of not less than 25% (THB 750,000) must be remitted before the Branch Office can begin operations; subsequent tranches are remitted on a schedule prescribed by the DBD. Capital remittances are evidenced by a Foreign Exchange Transaction Form from the receiving bank in Thailand.

Yes. The Department of Business Development retains broad statutory discretion to refuse applications that it considers contrary to Thailand's economic interests, national security, or public policy. In practice, applications are most likely to encounter difficulties where the proposed business activities overlap with areas of sensitivity under the Foreign Business Act, where the business plan lacks commercial credibility, or where documentation is incomplete or incorrectly prepared. UnionSPACE's rigorous pre-submission preparation is designed specifically to minimise these risks.

Physical presence in Thailand is not required for the registration process itself, provided that appropriate powers of attorney and notarised authorisations have been executed. UnionSPACE handles all filings and correspondence with the DBD on your behalf. The appointed manager for the Branch Office must, however, be physically based in Thailand for the purposes of the registration and ongoing compliance obligations.

A Branch Office operating under a Foreign Business License is subject to a 1:1 Thai-to-foreign employee ratio for Work Permit purposes — meaning one Thai employee is sufficient to support one Work Permit application for a foreign national. This is notably more favourable than the 4:1 ratio typically applicable to standard Thai limited companies. Foreign employees will require a Non-Immigrant B Visa followed by a Work Permit, both of which UnionSPACE can assist with as additional services.