ฉบับภาษาไทย: อ่านหน้านี้เป็นภาษาไทย
How does a branch of a foreign company differ from a Thai subsidiary?
Short answer
A branch is the same legal entity as its head office, so the parent carries the branch's liabilities directly and the branch is foreign for Foreign Business Act purposes. A Thai limited company is a separate juristic person whose nationality depends on its shareholding.
That difference drives everything else. A branch needs a Foreign Business Licence for any restricted activity, must remit minimum capital into Thailand on the schedule set for foreign operators, and is taxed on the income attributable to its Thai operations, with a remittance tax on profits sent to head office. A Thai-majority subsidiary avoids the licence question for most activities and can hold its own contracts, staff and bank facilities without engaging the parent's balance sheet.
Choose a branch when the client base insists on contracting with the parent entity, or when the work is a defined project with a limited life. Choose a subsidiary when you want liability separation, local hiring at scale, work-permit capacity tied to registered capital and Thai employees, or a structure that can later take BOI promotion or outside investment. A representative office is a third option, but it is limited to non-revenue activities such as sourcing and quality control. Scope, turnaround and fees are confirmed by IVC staff by phone, LINE or email — this site does not publish prices.
Reviewed as of 2026-08-04. General guidance only, not case-specific advice and not a guarantee of outcome. Government fees, conditions and processing times are set by the responsible authority and can change. This site does not publish prices — please ask our staff.
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