How to Legally Hire Foreign Employees in Thailand: Step-by-Step Guide for SMEs

How to Legally Hire Foreign Employees in Thailand: Step-by-Step Guide for SMEs

Hiring foreign employees in Thailand can offer your business a competitive edge — but it comes with strict legal conditions. Missteps can result in severe penalties, including fines, work permit cancellations, and even blacklisting of your company by Thai authorities.

For foreign-owned SMEs in Thailand, the scrutiny is even greater. At GENTLE LAW IBL, we specialize in helping foreign entrepreneurs comply with Thailand’s labor, immigration, and corporate law — offering legal solutions tailored for sustainable hiring.

This guide outlines the step-by-step legal process and compliance requirements for hiring foreigners in Thailand.

Who Can Be Legally Hired as a Foreigner in Thailand?

Under the Alien Working Act B.E. 2551 (2008) and Foreign Business Act B.E. 2542 (1999), a foreigner can only be legally employed in Thailand if:

• They hold a valid Non-Immigrant Visa (typically Non-B)

• They obtain a Work Permit issued by the Ministry of Labour

• The job is not among the prohibited occupations (e.g. accounting, legal practice, manual labor — reserved for Thai nationals under Ministerial Regulations)

Step-by-Step: How to Hire Foreign Employees in Thailand

Step 1: Check If Your Company Qualifies

To legally hire a foreign employee, your company must meet these standard conditions:

• Registered capital of at least THB 2 million per foreigner (or THB 1 million if the foreigner has a Thai spouse)

• Employ at least 4 full-time Thai employees per foreign employee

• Be registered for VAT

• Show proof of active operations, such as:

  • Audited financial statements

  • Lease agreement

  • List of Thai employees (PND.1 or SSO filings)

✅ BOI-promoted companies (Board of Investment) are exempt from these quotas. Leveraging BOI privileges is a strategic way to bypass restrictive thresholds — a service GENTLE LAW IBL regularly provides to foreign SMEs.

Step 2: Secure a Non-Immigrant Visa (Category B)

Before applying for a work permit, the foreign employee must obtain a Non-B Visa from a Thai embassy or consulate abroad.

Required documents include:

• Company invitation letter

• Company registration documents (DBD certificate, shareholder list, etc.)

• Draft employment contract

• Business license or VAT certificate

• Financial evidence of operations

🕒 Processing time: 3–10 business days, depending on consulate

Step 3: Apply for a Work Permit

Once inside Thailand with a valid Non-B Visa, the employee must apply for a Work Permit at the Ministry of Labour within 90 days.

Key documents include:

• Copy of passport (with valid Non-B visa)

• 3–4 passport photos and medical certificate

• Educational diplomas or professional licenses (if applicable)

• Employment contract

• Company’s tax ID, financials, and Thai staff list

• Office lease agreement

🕒 Processing time: 5–10 business days

Step 4: Register the Employee with the Social Security Fund (SSF)

Within 30 days of hiring, employers must register foreign employees with Thailand’s Social Security Office (SSO).

• Employer & employee each contribute 5% of salary, capped at THB 750/month

• Failure to register or remit contributions can result in fines and labor audits

Step 5: Maintain Ongoing Legal Compliance

Thai law imposes continuous obligations on both employers and foreign workers:

• 90-day reporting to Immigration

• Annual renewal of both visa and work permit

• Timely tax and SSO filings (monthly)

• Work must match the duties stated in the work permit

⚠️ Important: Performing tasks outside the work permit scope — even within the same company — is a legal violation under Section 37 of the Alien Working Act.

Common Legal Mistakes When Hiring Foreigners in Thailand

Mistake	Legal Consequence
Hiring without a work permit	Fine up to THB 100,000 for employer, deportation of employee
Incorrect job description in permit	Immediate permit revocation
Skipping Social Security registration	Subject to fines and inspections
Assuming visa = work rights	❌ Incorrect — work permit still required
Under-capitalized or understaffed company	Application rejection by Ministry of Labour

Legal Summary Table: Hiring Foreign Staff in Thailand

Criteria	Regular Company	BOI-Promoted Company
Min Capital	THB 2M/foreigner	Varies by BOI sector
Thai Staff	4 Thai per foreigner	Waived or modified
Work Permit	✅ Required	✅ Required (BOI fast-track)
Social Security	✅ Mandatory	✅ Mandatory
Visa Type	Non-B + WP	SMART Visa or Non-B + WP
Timeline	2–4 weeks	Often shorter

How GENTLE LAW IBL Helps You Hire Foreign Employees in Thailand Legally

At GENTLE LAW IBL, we provide end-to-end legal support for foreign SMEs in Thailand:

• Assessing eligibility and structuring company capital/staff

• Preparing Non-B Visa applications

• Managing work permit filings and renewals

• Drafting legally compliant employment contracts

• Registering for Social Security

We stay updated on all labour and immigration regulations so you stay protected.

📞 Book your free consultation with our legal experts at www.gentlelawibl.com

Final Thoughts

Hiring foreign employees in Thailand is not only possible — it’s legal and sustainable if done correctly.

But shortcuts, incomplete filings, or using templates not aligned with Thai law can jeopardize your company’s future.

Let the experts at GENTLE LAW IBL ensure your hiring is fully compliant from Day One.

Need help hiring foreign staff legally in Thailand? 👉 Schedule your free consultation today