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Open a Recruitment Company in Thailand

Open a Recruitment Company in Thailand

Thailand is a very prosperous country from an economic point of view, which is why in the last few years many foreign investors have come here with the purpose of starting companies. The regulations related to opening a business in Thailand are provided by the Company Law, however, most local companies are also required to have employees, a case in which the Employment Law must be respected.

When hiring employees, Thai businesses can complete the procedure on their own, but they can also request the services of recruitment companies which have started growing in numbers in the last few years. Those who want to start a recruitment agency in Thailand will be subject to various requirements depending on their nationality.

Below, our Thai attorneys explain the requirements related to opening a recruitment agency as a foreigner. We also have the necessary experience to help foreign entrepreneurs register any type of business in Thailand.

Steps for opening an employment agency in Thailand

As a foreign investor, one must find a local partner in order to open a company in Thailand, and this requirement also applies when seeking to set up a staffing agency. The most employed business form is the limited liability company which offers various benefits. Once the legal structure has been selected, the future business owner must:

  1.           have the company’s incorporation documents drafted and notarized;
  2.           have their identification papers translated and notarized and then filed with the Trade Register;
  3.           obtain the tax identification number with the local tax authorities;
  4.           find a suitable location for the Thai employment agency (special requirements apply);
  5.           apply for the recruitment license with the Labor Department in Thailand.

Our attorneys in Thailand can help with the entire registration procedure for opening a recruitment company in this country.

Special requirements for opening a recruitment company in Thailand

In order to open a Thai employment agency, a local or a foreign entrepreneur is required to comply with a few requirements related to the space in which the company will operate. Under the Employment Law, the company must have an office with a minimum area of 16 sqm which should be clearly separated from other spaces in the premises. In case the company does not own the building in which it operates, a consent letter which indicates the use of the office space must be obtained.

The Thai recruitment agency is required to display its name at the entrance of the building it operates in.

Applying for a recruitment license in Thailand

One of the most important steps in opening a recruitment agency in Thailand, applying for a recruitment license is mandatory. There are two types of licenses which can be obtained when opening a staffing agency in this country: a license for domestic recruitment activities or a license for outbound recruitment activities. A company can also apply for both types of recruitment licenses; however, the requirements are different for each one of them.

Obtaining a recruitment license in Thailand implies:

  •           the minimum share capital needed to obtain an outbound recruitment permit is 1 million THB, while there are no such requisites for a domestic recruitment license;
  •           the shareholding structure of a domestic recruitment agency implies at least one Thai partner who holds 51% of the company’s shares, while in the case of company recruiting personnel from abroad must have a local partner who holds 75% of the business’ shares;
  •           at least one Thai director must be appointed in a domestic recruitment company, while at least 3 Thai directors must ensure the management of an agency recruiting foreign workers;
  •           a guarantee of 100,000 THB must be deposited for a domestic recruitment license, while the guarantee for an outbound license is 500,000 THB.

The cost of the outbound recruitment license is higher than that of domestic license.

Services provided by recruitment agencies in Thailand

The services which can be offered by a recruitment company in Thailand vary based on the type of license obtained. The agency can apply for the outbound recruitment license and recruit both local and foreign workers for Thai companies. They can also work with foreign companies seeking to hire Thai nationals.
Thai recruitment companies can enter into various activities, including handling human resources departments in other companies, but also help people searching for jobs to find employment opportunities.

If you are interested in opening a recruitment company and need assistance, do not hesitate to contact our Thai lawyers who can help you register it. You can also rely on us for guidance in opening other types of companies in Thailand.