A Representative Office may also be established to engage in limited "non-trading" activities such as identifying or doing quality control work. To function as a liaison office to gather market information and quotation offers and report the same to its principal office overseas. Companies with this status enjoy certain privileges, but are bound by specific restrictions.
Establishing a Representative Office in Thailand requires an Alien Business Operation permit. The Principal and Representative office are considered one single legal entity and the principal is bound to third parties by the provisions on Agency in the Civil and Commercial Code. If the Representative Office commits an act without authority or beyond the scope of its authority the act does not bind the principal unless it has been ratified.
NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
If you would like further advice please contact: David Ellis, Johnson Stokes & Master, 16th Floor, Princes Building, 10 Chater Road, Hong Kong; Tel 2843 4226; Fax no. : 2845 9121. Alternatively do a text search "Johnson Stokes and Master" and "Business Monitor".