October 12th, 2023 at 07:17 am
Work in Thailand | How to Work and Achieve Success in Thailand
Foreign workers in Thailand contribute to the most dynamic economy in Southeast Asia. Unfortunately, for the first time in years, the country witnessed negative growth in 2009. The worldwide recession impacted 34 million workers and employees from all industries. However, the growth rate in 2010 was an outstanding 7.6%, indicating that everyone working in Thailand’s efforts had paid off.
While the economy continued to grow strongly into 2011, flooding in southern Thailand impacted the lives of many locals. Heavy rain and high flood levels devastated many industrial complexes in October 2011, causing massive damage to the local manufacturing industry. The national economy improved the following year but then decreased after 2012. The economy finally showed indications of revival in 2015.
Over 30% of Thailand’s workforce is currently employed in agriculture. However, they only contribute 11.6% of the total GDP. The service industry employs about half of the working population and generates more than half of the annual GDP.
Expats are especially needed in Thailand’s industrial sectors to fill specialized positions. You can bring the best qualifications for working in Thailand to the table if you have professional expertise in certain service industries.
Bangkok
There is a significant disparity in economic development between rural Thailand and metropolitan cities. This is particularly true in Bangkok and Pattaya. The rural population grows rice, cassava roots, corn, sugarcane, soybeans, and coconuts for subsistence farming and the worldwide market.
Thailand’s manufacturing sector, as well as Bangkok’s Central Business District, are significantly more profitable. The majority of expats work in the service industry, which is concentrated in Bangkok’s more central khet (districts), particularly in the Central Business District. The latter is home to the Thai Stock Exchange, which is vital to the entire Southeast Asian market. Bangkok’s CBD also includes regional branches of foreign banks (e.g., Barclays, Crédit Suisse, Deutsche Bank, HSBC) as well as various tourism and transportation enterprises (particularly airlines).
The Eastern Seaboard Zone
Thailand’s export-oriented manufacturing plants are concentrated in the Eastern Seaboard Zone near Pattaya and in select southern and western areas of the Bangkok Metropolitan Area. They produce textiles, vehicle parts, processed rubber, and plastics, as well as electronics and computer components for export to China, Japan, and the United States. (In fact, the 2011 floods resulted in a worldwide shortage of hard disk drives that lasted well into 2012.) Expatriate workers with industrial experience may be assigned to organizations in this industry.
Labor Restrictions
If you are a future expat looking to work in Thailand, you should be aware that there are some restrictions on foreign workers and employees. Aliens are not permitted to work in Thailand’s construction industry, retail, as office assistants, or in many other professions, according to the Foreign Business Act.
As a result, competent employment in the following industries offers the finest chances for working in Thailand: ICT, the petrochemical industry, medical technology, manufacturing, and engineering, or finance and trade. If you have good English abilities and some Thai knowledge, you can work in the hotel industry.
Expats should also be aware that Thai enterprises are required by law to employ at least 50 Thai locals for every foreign employee, up to a maximum of five foreign employees. In some industries, this can make finding full-time employment challenging, but not impossible.
Thailand Work Visas
Before you begin working, make sure you have a signed job contract and a B visa with a work permit. These are the essential prerequisites for lawfully residing and working in Thailand. Working without a permit will result in jail time and deportation.
Moving to Thailand, overstaying visas, and working illegally have grown so widespread among foreigners, particularly young backpackers, that Thai authorities are beginning to crack down with permit raids. Thai police are not uncommon to go to a workplace and demand to see everyone’s work permits. Police in Bangkok have even conducted searches in places popular with foreigners, including night markets.
Investing in Thailand
Foreigners who do not want to work for a company in Thailand but would rather invest in or start one should be aware of the numerous restrictions. Always remember to seek extensive legal advice before working in Thailand, especially if you are self-employed or an entrepreneur.
Furthermore, never consider forming a “shell company” solely to get a long-term visa or to avoid the limits on foreigners purchasing property and land in Thailand. For Thai law enforcement, this is no laughing matter, just like foreign residents working without legitimate authorization.
Starting a Business in Thailand
Many foreign residents who desire to start their own small business in Thailand use a Private Limited Company as their legal structure. They must meet the following standards in order to do so:
- The company needs three “promoters.” Thais must hold more than 50% of the firm’s shares to escape the Foreign Business Act and associated restrictions. A PLC with mostly Thai shareholders may acquire and sell property even if a foreigner owns some shares.
- Once you begin hiring employees, you will require a capital of 2,000,000 THB (65,700 USD) for each international work permit you wish to apply for. A registration cost of 5,000 THB (160 USD) is charged for each million of starting capital.
- In compliance with Thai business legislation, you must draft articles of incorporation and articles of organization. In addition, you must host an official inaugural meeting with all of your shareholders.
- Furthermore, you must register for tax purposes and apply for a tax number within 30 days of forming the firm.
- You must keep adequate accounting records in accordance with Thai legislation (civil code, commercial code, fiscal law, and so on) and withhold income tax from employees’ salaries. A yearly balance sheet must also be submitted to the Thai tax authority.
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