Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Establishing your company in Thailand does not have to be challenging. By choosing a local partner to help you get set up and attend to all your HR needs, your company can focus on growth and stability without the administrative costs and challenges accompanying expansion.
A PEO in Thailand is a safe and simple way to offer compliance assured HR functions for employees in an overseas target market and gives companies a way to hire and manage employees in less than 48h.
An Employer of Record in Thailand offers employment outsourcing solutions to take care of HR and administrative responsibilities and streamline the global expansion process. INS Global is a provider of third-party EOR in Thailand solutions to companies looking to improve and accelerate their international mobility.
A Professional Employer Organization (PEO) is a services provider that helps businesses get set up in a new region while avoiding administrative hurdles. Through a Thailand PEO your enterprise can easily hire staff and start business operations in the country.
Setting up a company in a new country means that you are required to follow to be compliant. If your business is not fully compliant, you could be exposed to risks that may affect your Thailand operations. PEO experts stay updated with all the regulations and local processes involved with company setup and business operation.
Many companies find the process of beginning operations in a new market to be longer and more costly than initially anticipated. A PEO company is familiar with the setup process and helps you achieve your goals without unnecessary delays.
INS Global not only assists with setup in Thailand, but we also provide additional support with your employees’ payroll. By understanding local regulations regarding employment and taxation, we can report on wages, track employee hours, and withhold tax and social security contributions.
Outsourcing this important function negates the need to handle the administration yourself. This gives you more time and energy to focus on business growth.
By partnering with a professional outsourcing provider, you can make use of skills and expertise that would otherwise require hiring multiple new employees or teams.
When thinking about getting started in Thailand, the administrative part of the setup is more than often overlooked. Companies may not fully understand local procedures or best practices, which can make things costlier and more time-consuming than expected.
Why should your business not incorporate its own entity?
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
While these two services are often discussed in relation to one another, it’s helpful to know the differences to understand better which may be better for your requirements.
INS Global offers both of these services according to your needs. Contact us today to learn more about which may be better for your company.
The law in Thailand does not require that employment contracts be made in writing. However, it is always considered good practice to have a written agreement to avoid later issues.
An employment contract can be concluded in another language in Thailand, but for work permits to be issued, a copy needs to be submitted in Thai to the Thailand Department of Employment.
The standard working hours in Thailand are 8 hours a day and a maximum of 48 hours a week. The working hours are set out in the Labor Protection Act, which also set out other basic legal protections for employees working in Thailand.
For employees who work in an environment deemed dangerous to their health and safety, their working hours cannot exceed more than 7 hours a day or a maximum of 42 hours a week.
Employees are able to work overtime for a maximum of 36 hours per week. Overtime rates vary according to the specific day:
Employees in Thailand who have worked for at least a year are entitled to a minimum of 6 fully paid annual leave days. An employer can grant additional leave days according to the labor contract provisions.
Unless otherwise provided by the employment contract or employee handbook, unused annual leave days may be accumulated. Leave entitlement is provided for in the Labor Protection Act.
There is no limit on sick leave in Thailand. However, only 30 days of paid sick leave are provided for in a calendar year. If an employee has taken more than 3 consecutive sick days, an employer can request the employee to produce a medical certificate.
Female employees can take up to 98 days of maternity leave in Thailand. During that time, the employer is required to provide the employee’s full salary for up to 45 days, whereafter the employee is eligible to receive a lump-sum payment from the social security system, which is equivalent to full pay.
According to the Labor Protection Act, there are no provisions for mandatory paternity leave.
The Thailand Revenue code requires personal income tax payments to be made on any income sourced in Thailand from both residents and non-residents. Tax residents in Thailand are also required to make tax contributions on any income that is sourced outside of Thailand.
A person is considered a tax resident in Thailand if they are physically present in Thailand for 180 days or more in a calendar year. The maximum tax rate payable, set at 35%, is applicable to income exceeding 5 million Thai baht.
With social security, both resident and non-resident employees who receive their income from a Thai employer are required to make social security contributions.
The contributions which are made to the Thailand social security fund are made in equal contributions from both employers and employees (5% of the employee’s salary, to a maximum of TBH 750 per month).
Social security contributions are withheld at the source, and payment is made by the employer when an employee receives their income.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
Level 39, Marina Bay
Financial Centre Tower 2,
10 Marina Boulevard
Singapore 018983
