Start a Recruitment Company begins with a crucial fact: over 95% of new agencies in Thailand face legal delays due to ownership, office, or compliance issues that could have been prevented with the right guidance.

Are you confident your recruitment company plan meets every legal checkpoint, from capital and shareholding to inspections and data protection?

Start recruitment company Thailand requirements licensing compliance

Thailand’s regulations are precise: a compliant setup with majority Thai ownership, a dedicated office, and ongoing recordkeeping is mandatory before you can operate.

This guide breaks down exactly what business owners and professionals must do to navigate Thai law correctly.

Key Takeaways

  • Ensure Thai-majority ownership and compliant leadership by maintaining at least 51% Thai shareholding and appointing a Thai director with a clean criminal record as required by Thai law.
  • Secure a physical, dedicated office space of at least 16 sqm with visible signage and written landlord consent, as virtual or serviced offices are not permitted for recruitment company registration.
  • Register with a minimum 1 million THB in capital and deposit a 100,000 THB security bond to enhance financial credibility and meet government licensing requirements.
  • **Submit complete incorporation documents **including the Memorandum of Association, Articles of Association, and shareholder details to the Department of Business Development before applying for a recruitment license.
  • Apply for the correct recruitment license from the Ministry of Labour, choosing between domestic or outbound recruitment, and expect a typical licensing process of about 15 days after inspection and document review.
  • Stay compliant with annual audits and regulatory changes by maintaining accurate records, updating licenses for any business changes, and conducting regular compliance checks.
  • Implement strong HR and data protection measures by adhering to the Labor Protection Act and PDPA, securing candidate and client data, and training staff on privacy requirements to prevent violations.
  • Plan for ongoing operational compliance by keeping your documentation, office, and systems inspection-ready, ensuring long-term reputation and trust among clients and regulators.

To start a recruitment company in Thailand, you must comply with regulations set by the Department of Business Development (DBD) and the Department of Employment, Ministry of Labour.

Key steps and required documents include:

  • Preparing the Memorandum of Association and Articles of Association
  • Submitting a shareholder list and stating business objectives
  • Appointing a Thai director with a clean criminal record
  • Naming your business with terms like “Recruitment” or “Manpower”

Continuous compliance with the Labor Protection Act and Personal Data Protection Act (PDPA) is required to protect both candidates and clients.

For detailed regulatory reference, visit the Thai Department of Employment.

Risks of Non-Compliance in Recruitment Operations

Non-compliance can trigger legal penalties, license revocation, and even forced business closure.

Common pitfalls involve:

  • Incorrect shareholding registration
  • Lack of proper licensing
  • Using non-compliant office spaces

To ensure compliance:

  • Implement annual legal audits
  • Maintain accurate documentation for inspections
  • Regularly review PDPA updates to secure client and candidate data

For more on data regulations, see the Official PDPA law overview.

Every recruitment company founder should have a system to track legal changes, organize compliance documents, and prepare for routine audits.

Capital, Shareholding & Ownership Structure

How to Structure Capital and Shares in Thailand

To start a recruitment company in Thailand, ensure a registered capital of at least 1 million THB for stronger financial credibility and eligibility with authorities.

The law requires:

  • At least 51% of shares held by Thai nationals or juristic persons
  • Documentation to prove shareholder details and company objectives
  • A Thai-majority board of directors with a Thai individual as the authorized signatory
  • A clean criminal record for the Thai director (mandatory for recruitment licensing)

Foreign investors can own up to 49%, but management and final decision-making must reflect Thai control.

These structures must be supported by proper documents, including registered share certificates and director appointment resolutions.

Best Practices to Avoid Hidden Ownership Risks

For a secure investment structure:

  • Choose direct shareholding for clarity, or layered shareholding for special partnerships (all must remain fully disclosed)
  • Deposit the required 100,000 THB security bond as cash, government bond, or a bank guarantee at the application stage
  • Keep records of all capital contributions and shareholder changes for audit-readiness

To prevent hidden risks, verify all Thai shareholders’ eligibility and ensure no nominee arrangements are used, as these are prohibited by law.

For more on legal structuring, visit the Department of Business Development.

Following these principles allows business owners to build trust with both regulators and clients, supporting a successful and compliant recruitment operation.

Company Formation & Registration Steps

Step-by-Step Recruitment Company Registration

Registering a recruitment company in Thailand begins with selecting a compliant business name and reserving it with the Department of Business Development (DBD).

Next, prepare and file the essential incorporation documents, including:

  • Memorandum of Association
  • Articles of Association
  • Shareholder list and business objectives
  • Appointment of Thai-majority directors

After registration, submit documents for tax ID and, if applicable, VAT registration.

Key milestones in the process:

  1. Reserve company name and obtain DBD approval
  2. Finalize shareholding and director structure
  3. File all incorporation documents
  4. Register for tax identification
  5. Prepare recruitment license application materials

Expect the timeline from initial step to documented incorporation to be 2-4 weeks, depending on document readiness and background checks.

Choosing the Right Office Location and Why It Matters

A compliant recruitment office must meet strict criteria to pass inspection and support licensing.

Mandatory requirements include:

  • Minimum 16 sqm dedicated office, physically separate from other operations
  • Visible signage displaying the company name at the entrance
  • Written landlord consent for recruitment business use

Prepare thoroughly for site visits by keeping:

  • Lease agreements
  • Ownership and consent documents
  • Office setup that visibly supports privacy, data security, and accessibility

The right office ensures smooth inspections, successful licensing, and lasting candidate and client confidence.

Licensing, Permits & Approvals

Required Licenses and Permits for Recruitment Agencies

Starting a recruitment company in Thailand requires a recruitment license from the Department of Employment under the Ministry of Labour.

There are two license types:

  • Domestic recruitment (placing workers within Thailand)
  • Outbound recruitment (sending workers abroad, with different requirements and restrictions)

The application process involves:

  1. Preparing certified incorporation documents
  2. Presenting shareholder and director lists
  3. Providing a detailed business plan
  4. Securing an office lease and written consent from the landlord
  5. Submitting a security bond of 100,000 THB and paying a 5,000 THB license fee

Approval typically takes 15 days once documentation and inspections are complete.

After approval, update your company objectives and business name to include “Recruitment” or a similar term for public records.

Compliance Obligations After Licensing

Recruitment agencies must prepare for annual inspections, triggered by regulatory schedules or business changes.

Key compliance actions after licensing include:

  • Keeping all operational, financial, and HR documents organized for review
  • Updating the license with any changes to directors, shareholding, or office address
  • Beginning renewal procedures well before expiration dates

Site inspections test compliance on office space, contracts, and documentation standards.

A clear, well-prepared approach to licensing and compliance keeps your agency operational and trusted by candidates, clients, and public regulators.

Employment Law & HR Compliance

Key Employment and HR Laws for Thai Recruitment Companies

To operate legally, recruitment agencies in Thailand must align with the Labor Protection Act and the Personal Data Protection Act (PDPA).

Key legal requirements include:

  • Written contracts covering job descriptions, probation, working hours, and mandatory benefits such as social security and annual leave
  • Clear HR policies outlining minimum contract provisions and fair workplace conditions
  • Secure processes for collecting, storing, and sharing candidate or client data in compliance with PDPA
  • Proper onboarding for foreign staff, who must have Non-Immigrant B visas and valid work permits, supported by detailed recordkeeping

For step-by-step details on labor law, you can visit the Thai Department of Labour Protection.

Preventing HR and Data Compliance Breaches

Strong compliance frameworks are vital to avoid penalties, license revocation, and loss of reputation.

Companies should:

  • Implement restricted access and encrypted systems for all personal data
  • Retain candidate and client records only as long as legally required
  • Train staff regularly on PDPA requirements and internal audit procedures
  • Prepare for unannounced HR inspections by keeping updated documentation and office conditions at audit-ready standards

Robust compliance not only protects your business but also builds candidate and client trust, making your agency a preferred partner for top talent and employers.

FAQ: Starting a Recruitment Company in Thailand

Minimum Office Requirements for a Recruitment Company in Thailand

A recruitment company in Thailand must operate from an office no smaller than 16 square meters, separated from other spaces, with landlord consent and clear signage.

Foreign Ownership Rules for Recruitment Agencies

Foreigners cannot fully own a recruitment company: at least 51% of shares must be held by Thai individuals or juristic persons by law.

Are Virtual or Serviced Offices Allowed?

Virtual and serviced offices are not eligible; only a dedicated, physical space with correct documentation will pass inspection.

How Long Does the Recruitment License Process Take?

After company registration, expect the recruitment license process to take about 15 days once all documents are submitted and inspections are passed.

Delays can occur if background checks (such as the criminal record check for a Thai director) require further review.

What Are the Costs for Licenses and Security Bonds?

Typical costs include a 5,000 THB government license fee and a mandatory 100,000 THB security bond.

For authoritative details on data protection for recruitment businesses, visit the Official PDPA Law Overview.

Strict adherence to Thai legal standards is essential: a compliant office and majority Thai shareholding are non-negotiable steps for success.

Conclusion

Building a recruitment company in Thailand is not just about compliance, it’s about establishing a reliable, future-ready business that stands out for integrity and trust. When you ensure transparent ownership, dedicated office space, and vigilant data practices, you set your agency apart from day one.

Take your next decisive steps: review your ownership structure, secure a compliant office, and formalize data protection processes without delay. If you want tailored legal support, contact us. Themis Partner will guide you through every registration detail, compliance update, and licensing milestone with clarity and efficiency.