Hiring Foreign Employees in Thailand: Quotas, Capital and the Legal Sequence

Hiring foreign talent can make sense when your Thailand business needs international experience, technical expertise or someone who understands your overseas market. But hiring a foreign employee is not as simple as signing an employment contract.

For most non-BOI companies, the employer needs the right corporate structure, sufficient capital, Thai employees, immigration status and a valid Thailand work permit before the foreign employee can legally begin working.

The key is getting the sequence right.

Key takeaways

For a standard non-BOI company, official guidance uses a 2:1:4 planning ratio: THB 2 million in investment capital for 1 foreign employee supported by 4 permanent Thai employees.

The normal sequence is employer first, Non-Immigrant B visa second and work permit before the foreign employee starts working. A business visa by itself is not permission to work.

BOI-promoted companies use a different foreign-expert approval process, but BOI status is not a blanket exemption from workforce rules. Since 2026, certain BOI manufacturing projects with more than 100 employees must maintain at least 70% Thai personnel.

The legal sequence: entity, visa and permit

If you plan to hire employees in Thailand from overseas, think of the process as a chain. Each stage supports the next.

1. Establish the employer

Normally, the foreign employee needs a Thai employer or another qualifying legal structure before the immigration and work permit process begins.

The company should be properly registered and its business activities should allow it to carry out the work for which the foreign employee is being hired.

Work permit applications can require corporate documents including the company's certificate of incorporation and shareholder list. BOI's One Start One Stop Investment Center notes that these documents should generally have been issued within the previous six months when submitted for a standard work permit application.

This is why foreign hiring should be considered while planning your incorporation rather than several months later.

2. Prepare the Non-Immigrant B visa

For the standard route, a foreigner coming to Thailand for employment will usually enter using a Non-Immigrant B visa.

BOI's official One Start One Stop guidance states that foreigners seeking to work in Thailand can be asked to provide Ministry of Labour approval. The prospective Thai employer may first submit the relevant application to the Department of Employment before the employee applies for the visa.

The important distinction is simple:

A Non-B visa allows the person to enter or stay for the relevant purpose. It does not by itself give that person permission to work.

3. Obtain the Thailand work permit

The foreign employee then needs the appropriate work permit for foreigners in Thailand.

Official guidance states that foreigners who work in Thailand must obtain permission to work before beginning employment. The permit is tied to the approved employment conditions.

That means companies should avoid having a new foreign hire start performing normal duties while telling them that the paperwork will be completed later.

Even if the person is already in Thailand, their current visa status does not automatically create a right to work.

4. Maintain immigration permission

The visa and work permit processes also need to remain aligned after the employee starts.

For a standard business-based extension of stay, Immigration Bureau guidance requires the employee to hold non-immigrant status and meet the relevant employment criteria. The employer must also demonstrate that the business is operating genuinely and continuously.

So foreign hiring is not just a one-time application. The company needs corporate, payroll, tax and employment records that continue to support the employee's immigration position.

Quota and capital math

The numbers are where many new employers get caught.

For a typical non-BOI business, official BOI guidance summarizes the planning ratio as:

THB 2 million capital : 1 foreign employee : 4 permanent Thai employees.

Immigration guidance separately confirms that a business-based extension normally requires at least THB 2 million in paid-up registered capital and a ratio of one foreign employee to four permanent Thai employees.

A simple planning illustration therefore looks like this:

Planned foreign employees

Capital planning level

Permanent Thai employees

1

THB 2 million

4

2

THB 4 million

8

3

THB 6 million

12

Illustration based on the official 2:1:4 guidance for standard non-BOI hiring. Individual circumstances and exemptions can affect the final requirement.

The capital is not simply a government fee for getting a work permit. BOI's OSOS guidance specifically explains that the capital can be used in running the company's business. The authorities may review supporting documents such as company records, tax returns and financial statements when checking the company's capital position.

This is an important distinction for founders. Registered capital affects the structure and financial planning of the business. It should not be treated as an immigration payment that disappears once the work permit is issued.

Prohibited occupations for foreigners

Having sufficient capital does not mean a foreign employee can perform any job.

Thailand maintains occupations that are restricted or prohibited for foreigners.

The Ministry of Labour's official notification separates prohibited occupations into different lists. The Department of Employment states that 27 occupations are strictly prohibited under List 1. Examples include wood carving, auctioneering, haircutting or beauty treatment, certain traditional handicrafts and making Thai musical instruments.

Other occupations may be allowed only under specific conditions.

For employers, the practical issue is the employee's real work rather than simply giving them a more senior job title.

Calling someone a "manager" does not necessarily solve the problem if their day-to-day duties fall within restricted work.

Before making an offer, compare the proposed job description with Thailand's restricted occupation rules and make sure the duties submitted in the work permit application match what the employee will actually do.

For help structuring the application, Settlr's work permits team can review the company and proposed position before the employee starts work.

Onboarding the foreign employee to payroll

Once the immigration and work authorization pieces are in place, the employee should move into the company's normal HR and payroll system.

This means creating a compliant employment record, setting the salary, calculating applicable withholding tax and maintaining payroll documentation.

The Revenue Department's P.N.D.1 form specifically covers employment income including salaries and wages under Section 40(1) of the Revenue Code. Employers use the form to report employment income and tax withheld from employees.

Foreign nationality does not automatically remove Thai payroll tax obligations. The Revenue Department has confirmed that a foreign individual earning income from duties or employment performed in Thailand can be liable for Thai personal income tax on that income.

Companies should therefore connect immigration onboarding and payroll onboarding rather than treating them as two separate projects.

Your payroll records may also become supporting evidence when immigration or labour authorities review whether the employer is operating genuinely and whether Thai and foreign employees are actually employed.

Settlr can handle payroll onboarding once the employment structure is ready.

BOI exemptions and the foreign expert route

BOI-promoted companies have a different route for bringing foreign skilled workers and experts into Thailand.

Instead of relying only on the normal non-BOI framework, the promoted company requests approval for a foreign position and then requests approval to place the selected foreign employee into that position.

BOI states that companies must explain the responsibilities, number of positions, duration and business necessity for each requested foreign expert position. Once the position is approved, the company can submit the individual foreign employee for placement.

BOI promotion can therefore make foreign hiring significantly more flexible for qualifying businesses.

However, "BOI company" should not be interpreted as "no employee rules."

BOI Announcement No. Por.8/2568 introduced workforce requirements for certain promoted manufacturing projects. For manufacturing businesses with more than 100 total employees, Thai personnel must represent at least 70% of the relevant workforce. The rule became effective on January 1, 2026 for projects promoted before June 5, 2025 and October 1, 2025 for projects promoted after that date.

Service projects and other BOI categories can be treated differently, which is why the company's exact promotion certificate matters.

Costs per foreign hire

The capital requirement is usually much larger than the actual government filing fees.

For a skilled or professional foreign employee, some of the core government costs can include:

Item

Government fee

Work permit application

THB 100

Skilled/expert work permit for up to one year

THB 3,000

Business-based extension of stay

THB 1,900

The Department of Employment states that the application fee is THB 100 and that the annual work permit fee for skilled or expert foreign workers is THB 3,000. Immigration Bureau's public handbook lists the extension-of-stay fee at THB 1,900.

These are government charges, not the complete cost of hiring.

Companies may also need to budget for medical certificates, document preparation, translations, certifications, visa applications, travel and professional support. Those costs vary depending on the employee's nationality, location, documentation and route used.

The biggest financial consideration is often not the filing fee. It is whether the company already has the capital, Thai headcount and compliance infrastructure needed to support the foreign hire.

FAQs

Can a foreign employee start working while waiting for a work permit?

Generally, no. The employee should have valid authorization to work before beginning employment duties in Thailand.

Is a Thailand business visa the same as a work permit?

No. A Non-Immigrant B visa deals with immigration status while the work permit deals with permission to work. Most standard foreign hires need the appropriate status and work authorization.

How many Thai employees are needed for one foreign worker?

For the standard non-BOI business route, Immigration guidance uses a ratio of one foreign employee to four permanent Thai employees.

How much capital is normally needed to hire a foreign employee?

Official OSOS guidance summarizes the standard planning ratio as THB 2 million of investment capital for one foreign worker together with four permanent Thai employees. Different rules or exemptions can apply to BOI-promoted companies and other qualifying employers.

Can a BOI company hire unlimited foreigners?

No. BOI companies can use the foreign skilled worker and expert approval system, but positions must still be approved based on the needs of the promoted project. Current BOI rules also impose Thai workforce requirements on certain larger manufacturing projects.

Plan your first hire

Hiring internationally becomes much easier when the company structure, capital, Thai staffing, visa, work permit and payroll are planned together.

Before issuing an offer letter, confirm that your company can support the employee under the correct route and that the proposed role is permitted for a foreign worker.

Planning your first foreign hire in Thailand? Settlr can help you map the company requirements, work permit process and payroll setup before the employee starts. Plan your first hire with us.