Entrepreneurs who wish to set up a recruitment company in Thailand follow the general steps for company creation in this country. The recruitment sector is a developed one, with many local and international companies looking to hire the most suitable staff for their open positions.
Recruitment companies in Thailand offer services that are tailored to the needs of their clients. To do so, they often offer solutions for more than one key industry and strive to provide services that focus both on executive recruitment, as well as for other types of employees.
In this article, our Thai company formation experts discuss the main steps needed to open a company that activates in the recruitment sector.
If you need personalized assistance to open a company, please do not hesitate to reach out to our team.
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The main steps to set up a recruitment company in Thailand
Setting up a new business in the recruitment sector will mean understanding the current market trends and needs, drawing up a business plan, and starting the process for company formation in Thailand.
Opening a company starts with choosing a suitable business form. For investors who open a recruitment company in Thailand, a common choice is the private limited company. Foreign recruitment agencies interested in entering the market can choose to establish a branch in Thailand.
The steps below highlight the main processes necessary to open a private limited company in Thailand:
- Decide the shareholding structure and assign the company’s promoters;
- Prepare the Memorandum and the Articles of Association;
- Meet the minimum capital requirements (subscribe all the registered shares) and pay at least 25% of the shares;
- Apply for registration with the Ministry of Commerce; Subsequent registrations for hiring employees, for tax purposes, and for social security purposes can take place on the same day.
Having dedicated assistance is helpful for investors who decide to open a company in Thailand. Our team can give you more details about the requirements for a private limited company.
A recruitment license in Thailand is required for companies that will provide these types of services. Our agents describe some key aspects about this license below.
Registration for private recruitment companies in Thailand
Thailand is a signatory member of certain conventions within the International Labor Organization (ILO) which generally sets out the registration and licenses needed for private recruitment companies of its members. Even though there can be differences among countries, generally these include the main conditions stated below:
• company registration;
• registration with government tax and regulatory bodies;
• agreement to abide by the applicable labor and equal opportunity legislation;
• regular reporting to government entities on the activities of the recruitment company;
• agreement not to impose fees from individuals looking for jobs (except if specifically stated by the law);
• agreement to keep the confidentiality of the personal information for individuals looking for jobs and clients when setting up a recruitment company in Thailand.
Recruitment businesses in Thailand follow the provisions of the Employment Arrangement and Jobseeker Protection Act B.E. 2528 (1985). This sets forth the legal requirements for the recruitment license in Thailand, as well as other important management and domestic employment arrangements.
When applying for a license for recruitment companies it is relevant to keep in mind that:
- The applicant will be a Thai national;
- He will not be younger than 20 years of age and will not be suspended or have his employment arrangement license revoked;
- The person who applies for a recruitment license in Thailand cannot be incompetent or semi-incompetent, nor can he be a person with proven disgraceful behavior.
Thai recruitment company taxation
Investors who wish to open a recruitment company in Thailand will be concerned not only with its registration and licensing, but also with its taxation.
Our Thai company registration experts remind investors of the most important taxes for companies:
- 20% general corporate income tax rate;
- 0%, 15%, and 20% progressive corporate income tax rates for some small and medium-sized companies;
- 10% dividend withholding tax;
- 10% standard value-added tax.
Our accountants in Thailand can give you more details about the tax rates and the general compliance requirements for companies.
Our team can assist you in case you want to open a bank account in Thailand.
If you made the decision to open a recruitment company in Thailand, we can help. Please contact our Thai company formation advisors for further guidance and details.