
What a branch is
A branch is not a new legal entity but part of the foreign parent, so the parent is directly liable for its debts.
Licence and capital
Most foreign branches carry on activities listed under the Foreign Business Act, so a licence or certificate is needed first, and capital must be remitted as required.
Branch taxation
A branch pays corporate income tax on Thai-sourced profit, and remitting profit to the parent may attract additional profit-remittance tax.
Frequently asked questions
Is a local manager required?
An authorised representative in Thailand is required as the authorities specify.
Branch or subsidiary?
It depends on liability, tax and licensing; compare case by case with an adviser.
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Sources
- Department of Business Development
- Office of the Council of State (Thai legislation)
- Thai Revenue Department
Reviewed by the accounting team at Thai Law & Accounting Services · Last reviewed 4 Oct 2026 · General information, not tax or legal advice for your specific case