According to the statistics, the majority of workers in Thailand, 64 percent believes job-hopping is a good thing in order to have a career path. In other words, recruitment companies play an important role and work tight with companies to replace employees and bring experts in different fields. Therefore H&P lawyers in Thailand have prepared this brief summary and legal comments on the regulation and licensing to operate this business complying with Thai Law.

In order to operate a recruitment service business in Thailand, it is compulsory that the recruitment company must obtain a recruitment license directly from the Thai Labor Department. The requirements are as follows:

1) The company must be a Thai entity, having Thai shareholders at least 51% of total shares.

2) The Director applying the recruitment business license must be a Thai national, having authority to sign for recruitment business.

3) The company is required a guarantee payment in the amount of 100,000 THB for obtaining the recruitment license.

4) And the office of the company needs to be at least 16 square meters big and it should be separated from other companies.

The proceeding to apply for this license can be complex and can be summarize below:

1) After submitting the required documents, the officer will review and check the completion of those documents.

2) The officer will inspect the office of the recruitment company to assure that the office complies with the regulations.

3) The officer will finalize the opinion to the registrar, if the documents, office and guarantee payment are completed, the finalize opinion will be sent to the registrar within 60 days.

4) In the case where the registrar approves and grants the license for operating recruitment business, the company has to change its name by adding the words “Recruitment Business, Manpower or any words having the similar meaning.

5) The company must be responsible for the government license fee in the amount of 5,000 THB after obtaining the license, and the recruitment license will be valid for a period of two years at a time.

Finally, after the license acquisition, the recruitment company still needs to comply with two aspects:

1) If the company wants to advertise the business in any media, it needs to submit an application for the advertisement permission to the registrar at least 3 days in advance.

2) In the case where the company charges the services cost from the job seeker, it must less than 25% of the first month salary of the person who obtained the job without further fees.

If you need to talk with a lawyer to set up a recruitment company in Thailand, please contact us at [email protected]

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