Foreign "Rep" Office & "TISO" - Formichella & Sritawat

This page explores TISO (Trade and Investment Support Office) Companies and Representative Offices, two popular options for foreign investors looking to establish a presence in Thailand.

Learn about their features, differences, pros and cons, and how FOSR Law can assist you in making the right choice for your business.

What Are TISO Companies and Representative Offices in Thailand?

TISO Companies

The Trade and Investment Support Office (TISO) is a promotion category under the Thailand Board of Investment (BOI) designed for foreign companies providing support services. TISO allows 100% foreign ownership and is ideal for businesses in consulting, technical services, outsourcing, and wholesale trading of Thai-made products.

Representative Offices

A Representative Office is a non-trading entity established by a foreign company to represent its head office in Thailand. It focuses on non-commercial activities like market research and coordination, fully funded by the parent company, and does not generate revenue.

Key Differences Between TISO Companies and Representative Offices

Ownership: TISO allows 100% foreign ownership with BOI approval, while a Representative Office is 100% owned by the foreign head office but operates as an extension without separate legal status.
Activities: TISO supports a broad range of service and trade activities (e.g., monitoring associated enterprises, advisory services), whereas Representative Offices are limited to non-revenue-generating tasks like quality control and market research.
Incentives: TISO offers non-tax benefits (e.g., land ownership, simplified work permits), while Representative Offices have no specific incentives beyond tax exemptions on non-income activities.
Capital Requirements: TISO requires a minimum annual expense of 10 million THB and capital of at least 2.5 million THB, while Representative Offices need a minimum remitted capital of 2 million THB over three years.
Legal Status: TISO is a separate legal entity with BOI promotion, while a Representative Office is not a distinct entity from its head office.

How Can We Help?

At FOSR Law, we specialize in guiding foreign investors through the setup of TISO Companies and Representative Offices in Thailand. Our services include:

Consultation: Assessing your business needs to recommend the best structure.
Document Preparation: Drafting and translating required documents for BOI or DBD submission.
Application Process: Handling TISO approvals (2–4 months) or Representative Office registrations.
Compliance Support: Ensuring ongoing adherence to Thai regulations, including expense reporting for TISO and activity limits for Representative Offices.
Visa & Work Permits: Streamlining applications for foreign staff.

Pros and Cons of TISO Companies

Pros

100% Foreign Ownership: Full control without Thai majority requirements.
Land Ownership: Limited land ownership (up to 20 rai for employee housing) with BOI approval.
Work Permit Flexibility: Relaxed 4:1 Thai-to-foreign employee ratio.
Versatile Activities: Covers a wide range of support services, enhancing business flexibility.

Cons

High Expense Threshold: Requires minimum annual expenses of 10 million THB, limiting smaller firms.
No Tax Incentives: Lacks corporate income tax exemptions available in other BOI categories.
Approval Time: Takes 2–4 months, with potential delays for additional documentation.

Pros and Cons of Representative Offices