Recruitment License

Recruitment License in Thailand | Umpire Legal | Photo credit http://www.freepik.com

Whether you are involved in domestic or outbound recruitment business, a recruitment license will be required from the Department of Employment, of the Ministry of Labour. However, the same company cannot operate both domestic and outbound recruitment business.

Director

Only a Thai director is permitted to sign documents in binding the company for matters concerning recruitment business. The recruitment company must have a majority of Thai directors on the board, but the representative powers of such directors can be limited to everything that concerns the recruitment business. The Thai director must be able to provide a blank criminal report. Majority of the shareholders in a recruitment company should also be Thai nationals.

Office Space Requirements

The office area (having minimum area of 16 square meters) should be clearly separated from other offices, and have a clear signboard with the full company name at the entrance. Sufficient documents should be provided by the legal owner of the property including a consent letter to evidence permission to use the address for recruitment business. Do note, virtual or serviced offices are usually not considered sufficient to operate a recruitment business.

Other Obligations

During the application, a security fee must be deposited at the Department of Employment. The purpose of the payment of the security fee is that it is used as evidence that the company has sufficient funds to pay any penalty fees for failing to comply with their obligations under the license. The fee will be retained until such time as the recruitment license is no longer required.

Once a recruitment license is issued, the company should change its name and business objectives to include the words ‘Recruitment’, ‘Manpower’, or any words having the same meaning. The recruitment license is valid for a period of two years at a time.

Domestic Vs Outbound Recruitment License

The major differences between domestic and international recruitment license requirements are as follows:

Requirements Domestic Recruitment Outbound Recruitment
Registered capital There is no minimum capital requirement for a company operating domestic recruitment. The minimum capital requirement is at 1 million THB.
Shareholders Thai shareholder(s) must hold no less than 51% of the total share capital. Thai shareholder(s) must hold no less than 75% of the total share capital.
Directors There must be at least one Thai director, appointed in the ratio of 1:1 in case there is also a foreign director. There must be more Thai directors than foreign directors, appointed in the ratio of 3:1.
Security fee 100,000 THB which can be deposited as cash, bonds, or bank guarantee. 5,000,000 THB which can be deposited as cash, bonds, or bank guarantee.
Cost of the recruitment license 5,000 THB 10,000 THB