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Understanding Thai Staffing Requirements for Hiring Foreign Staff in Thailand
12/06/2023
With its thriving economy and welcoming business environment, Thailand has become an attractive destination for companies seeking to tap into its potential. However, navigating the intricacies of Thai employment regulations and understanding the necessary steps for hiring foreign staff can be daunting.
This article will guide you through the process, looking at the specific requirements and considerations when hiring foreign staff in Thailand.
Key points
- Limited companies in Thailand must have at least four Thai employees for every foreign employee (4:1).
- Thailand Representative Offices are subject to a ratio of 1 Thai employee per foreign employee (1:1).
- Foreigners married to a Thai national are subject to a reduced quota of 2:1.
- BOI companies are not subject to these quotas for skilled foreigners
- A Minimum capital requirement of 2 Million THB (per foreign employee) is required for a Limited Company.
- A Minimum capital requirement of 1 Million THB (per foreign employee) is required for a Representative Office.
How many Thai staff are required to hire a foreign employee?
There are limitations on the number of foreign employees a company can hire to regulate the employment of foreign workers. These limitations are based on the ratio of Thai to foreign staff. The specific ratios may vary depending on the type of business and as follows.
Thai Limited Companies
Limited companies in Thailand must have at least four Thai employees for every foreign employee. This means that for every foreign employee hired, the company must have a minimum of four Thai employees on its payroll.
There are no restrictions on how many foreign staff are employed by the limited company. However, the quota must be satisfied for each foreign employee i.e.
1 foreign employee = 4 Thai employees
2 foreign employees = 8 Thai employees
3 foreign employees = 12 Thai employees
Please note foreigners married to a Thai national are subject to a reduced quota of 2:1 when hired by a Thai company.
Representative Offices
Unlike regular businesses, Thailand Representative Offices are not subject to the standard work permit ratio of four Thai employees for each foreign employee. Instead, they are subject to a ratio of 1 Thai employee per foreign employee.
Typically, representative offices are entitled to issue up to 3 work permits for foreign employees. However, a representative office may be eligible for additional work permits in certain situations. The specific number of additional work permits would depend on the size and scale of the representative office’s operations.
BOI Companies
Unlike Thai limited companies, there are no restrictions on hiring foreign skilled employees. As a result, the quota of hiring 4 Thai employees per foreign national is lifted for foreign-skilled employees.
As per the BOI, a BOI-promoted company shall be granted permission to hire foreign nationals who are:
(1) skilled workers and,
(2) experts.
What are the minimum capital requirements for hiring foreign staff?
It is important to note that when hiring foreign staff, the employer must also satisfy the minimum capital requirements and the Thai staff quota.
The minimum capital requirements are as follows:
| Company Type | Minimum Capital Requirement (Per foreign employee) |
| Thai Limited Companiy | 2 Million THB |
| Representative Office | 1 Million THB |
| BOI Companies | N/A |
What else should I know?
Below you will find some additional information that could be useful when looking to hire foreign staff in Thailand.
Work Permits
Foreign employees in Thailand are required to obtain work permits to work legally. The responsibility of applying for work permits lies with the employer, who must do so on behalf of their foreign employees.
Alternative Visa Options
The following visa options may be a suitable alternative for those who wish to work in Thailand without having to satisfy the requirements set out above.
SMART visa
A SMART Visa is a special visa category introduced by the Thai government, aimed at attracting highly-skilled professionals, entrepreneurs, and investors to Thailand.
The SMART Visa program offers qualified applicants a range of benefits and privileges, including streamlined visa processing, a longer visa duration, and various tax incentives. One key benefit is that the holder of a SMART visa does not need to have a Work Permit while working for the endorsed company.
Four types of SMART Visas are available, each with specific eligibility criteria and requirements. These include the SMART T Visa for entrepreneurs and investors in the tourism and hospitality industry, the SMART S Visa for high-skilled professionals in science and technology fields, the SMART I Visa for investors in the targeted industries, and the SMART E Visa for executives and high-level managers of companies operating in Thailand.
For more information, please take a look at our blog post here.
LTR Visa
The Long-Term Resident Visa (LTR) is a visa issued by the Thai government that allows foreign nationals to reside in Thailand for an extended period. This visa is intended to attract high-value individuals who wish to stay in the country for an extended period for various reasons, such as work, retirement, and stimulating the Thai economy.
Holders of the LTR will be eligible to receive a Digital Work Permit. Furthermore, should the holder of an LTR wish to set up a Private Limited Company in Thailand, as mentioned above, typically, a company will need to hire 4 Thai staff per 1 foreign employee. This quota does not apply to LTR visa holders.
For more information, please take a look at our blog post here.
Skill Requirements
Certain positions in Thailand may require specific skills not readily available in the local workforce. Hiring foreign staff to fill those specialized roles is possible in such cases.
Education and Expertise
The Thai government encourages hiring foreign professionals with advanced degrees or specialized expertise in certain industries. This is seen as a way to contribute to the country’s development; thus, the government supports recruiting such individuals.
How can Belaws help?
For more information about hiring foreign staff in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
How many Thai employees are required to hire a foreign employee in a Thai limited company?
A Thai limited company must have at least four Thai employees for every foreign employee.
What is the Thai staff-to-foreign staff ratio for Thailand Representative Offices?
Thailand Representative Offices are subject to a ratio of 1 Thai employee per foreign employee.
What is the reduced quota for foreign employees married to a Thai national in a Thai company?
Foreigners married to a Thai national are subject to a reduced quota of 2:1 when hired by a Thai company.
Are there any restrictions on hiring foreign skilled employees in BOI companies?
Unlike Thai limited companies, there are no restrictions on hiring foreign skilled employees in BOI (Board of Investment) companies.
What are the minimum capital requirements for hiring foreign staff in Thailand?
The minimum capital requirements are 2 Million THB per foreign employee for Thai Limited Companies and 1 Million THB per foreign employee for Representative Offices. There are no minimum capital requirements for BOI companies.
Do foreign employees in Thailand need work permits?
Yes, foreign employees in Thailand are required to obtain work permits to work legally, and the responsibility of applying for work permits lies with the employer.
What are the alternative visa options for working in Thailand?
The alternative visa options include the SMART visa, which is aimed at attracting highly-skilled professionals, entrepreneurs, and investors, and the Long-Term Resident (LTR) visa, which allows foreign nationals to reside in Thailand for an extended period.
Are there specific skill requirements for hiring foreign staff in Thailand?
Certain positions in Thailand may require specific skills not readily available in the local workforce, and hiring foreign staff to fill those specialized roles is possible in such cases.
Does the Thai government support hiring foreign professionals with advanced degrees or specialized expertise?
Yes, the Thai government encourages hiring foreign professionals with advanced degrees or specialized expertise in certain industries as a way to contribute to the country’s development.
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