Global EOR Services in Thailand
Find, Hire & Pay Employees in Thailand
Utilizing Global Employer of Record (EOR) services in Thailand offers a strategic solution for businesses aiming to expand their operations without the complexities of establishing a local entity. Here’s a comprehensive guide covering key facts about Thailand, its employment laws and policies, and the process of opening a legal entity.
Why Use Global EOR Services in Thailand?
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇹🇭 Key Facts About Thailand: A Comprehensive Guide to Employment and Labor Practices
Expanding your business into Thailand can be rewarding, but navigating local employment laws, labor regulations, and company registration requirements can be complex. Global Employer of Record (EOR) services provide a practical solution for businesses wanting to hire employees in Thailand without setting up a local entity.
Key Facts:
Population: Approximately 70 million people.
Capital: Bangkok
Official Language: Thai
Currency: Thai Baht (THB)
Economic Sectors: Manufacturing, agriculture, tourism, and services.
Labor Force: A significant portion comprises migrant workers, particularly from Myanmar and Cambodia.
Employment Laws and Policies in Thailand
Labor Regulations
Thailand’s Labor Protection Act (LPA) governs employment relationships. Key points include:
Working Hours: Maximum 48 hours per week (8 hours/day for most jobs)
Overtime: Compensation is required for overtime hours
Leave:
Annual leave: Minimum 6 paid days
Sick leave: Up to 30 days per year
Maternity leave: 98 days, with 45 days paid by the employer
Public Holidays: At least 13 national holidays
Employment Contracts
Both fixed-term and permanent contracts are legally recognized
Written contracts are recommended to ensure clarity and prevent disputes
Termination and Severance
Employers must follow strict procedures for termination
Severance pay is required based on the employee’s length of service
Opening a Legal Entity in Thailand
Establishing a company in Thailand can be time-consuming and requires careful planning. Common business structures include:
Private Limited Company: Suitable for most foreign investors, requires at least 2 shareholders and 1 director
Branch Office: An extension of a foreign company
Representative Office: Limited to non-revenue-generating activities
Registration Process:
Reserve a company name with the Department of Business Development (DBD)
Prepare and submit a Memorandum of Association
Register the company and obtain a certificate of incorporation
Register for taxes and social security
Open a corporate bank account
Capital Requirements:
Foreign-owned companies must have a minimum registered capital of THB 2 million per foreign employee
Some sectors require a Foreign Business License
Timeline: Typically 2-4 weeks, depending on entity type.
Popular Global EOR Providers Supporting Venezuela
(They often partner with in-country firms for local compliance.)
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