Under a PEO Thailand structure, the PEO company acts as the legal employer in Thailand. All work must align with the position stated on the work permit and fall within the PEO’s registered business activities. A formal service agreement between the overseas company and the PEO provider is also required.
Introduction
A foreign company may want to hire someone in Thailand without setting up a local company straight away. That is where PEO Thailand and Employer of Record (EOR) services come in. In Thailand, the terms PEO and EOR are often used interchangeably, but they are not always the same in practice. Understanding the difference is important because the right structure depends on your business objectives, employment arrangement, and long-term plans.
This guide explains the difference between PEO and EOR services in Thailand, when each model is appropriate, the costs and timelines involved, and the legal considerations that foreign businesses should understand before hiring. Whether you are an overseas company testing the Thai market, a solo operator employing your first local staff member, or a regional manager expanding an existing team, we also explain how VB & Partners can support both PEO and EOR arrangements from start to finish.
Points clés
- PEO and EOR are different models. An EOR becomes the employee’s legal employer in Thailand, while a PEO is a co-employment arrangement where the client keeps its own registered Thai company as the legal employer and outsources HR and payroll.
- You can hire in Thailand without a Thai company. A foreign business with no local entity cannot legally employ staff, sponsor work permits, or run Thai payroll, so an EOR (often called a sponsored work permit service) is the only compliant route.
- The arrangement must be a genuine employment relationship. All work must match the position on the work permit and fall within the PEO’s registered business activities, and a formal service agreement between the overseas company and the provider is required. Selling work permits without real employment is prohibited under Thai law.
- EOR is much faster than incorporation. Onboarding through a PEO/EOR takes around one to two months, compared with roughly four months to set up a Thai company ready to employ staff.
- Costs are transparent but not all-inclusive. VB & Partners’ service fees run from THB 15,000 to 20,000 per employee per month, covering payroll, PND 1 tax withholding, Social Security, and compliance. Salaries, employer contributions, and government visa and work permit fees are charged separately.
What Is the Difference Between a PEO and an EOR in Thailand?
Although the terms are often used interchangeably in Thailand, a Professional Employer Organization (PEO) and an Employer of Record (EOR) are not the same thing.
An Employer of Record (EOR) becomes the employee’s legal employer in Thailand. The EOR signs the employment contract, sponsors the employee’s Non-Immigrant B visa and work permit, processes payroll, withholds personal income tax (PND 1), pays Social Security contributions, and ensures compliance with Thai employment law. The overseas company remains responsible for the employee’s day-to-day work, performance, and business objectives, but it is not the legal employer. This allows foreign businesses to hire staff in Thailand without first establishing a Thai company.
A Professional Employer Organization (PEO) operates differently. It is a co-employment model in which the client company already has a registered Thai entity and remains the legal employer. The PEO provides HR, payroll, benefits administration, and compliance support, while the client retains its employment relationship with the employee. Rather than replacing the employer, the PEO supplements the client’s internal HR function.
Can I Hire Employees in Thailand Without Setting Up a Company?
If you want to hire employees in Thailand without a company, the most practical solution is to use a PEO Thailand or EOR Thailand service. This allows your business to employ staff legally without first establishing a Thai subsidiary or branch office.
Without a registered Thai entity, a foreign company cannot legally employ staff in Thailand. It cannot sponsor work permits or Non-Immigrant B visas, operate Thai payroll, withhold personal income tax, register employees with the Social Security Office, or meet the ongoing obligations required under Thai employment law.
An Employer of Record Thailand can help in such a situation by becoming the employee’s legal employer through its own registered Thai company. The EOR manages the employment contract, payroll, tax withholding, Social Security contributions, and employment compliance, while your business retains full control over the employee’s day-to-day work, responsibilities, and performance. This gives you access to local talent without the cost, administration, or time required to incorporate a Thai company.
For businesses exploring the market, hiring their first employee, or building a small local team, PEO Thailand services provide a fast and compliant way to begin operations before deciding whether a permanent legal presence is necessary.
Is PEO the Right Option for You?
PEO services in Thailand may not be suitable for every business activity or individual. Before applying, it is important to review the following points to decide whether the PEO structure is appropriate for your situation.
Eligible activities
Our PEO service is designed for professionals working in consulting, advisory, IT services, and business development. It is not a general employment solution open to all industries or job functions. In particular, occupations reserved for Thai nationals under the Ministry of Labour’s prohibited occupations rules cannot be performed through a PEO arrangement (see the FAQ below).
Legal employer relationship
Under a PEO arrangement, the PEO company in Thailand is your legal employer of record. All employment is governed by Thai law, and you operate under the direct supervision and policies of the PEO as your employer in Thailand.
Work permit alignment
All work performed must correspond exactly to the job position stated on your Thai work permit and must fall within the registered business activities of the PEO company in Thailand. Activities outside this scope are not permitted under Thai law.
Service agreement requirement
A formal written agreement between the overseas parent company (client) and the PEO provider in Thailand is required. This agreement must clearly define the scope of services and be consistent with both the work permit and the PEO’s registered business activities.
If you are unsure whether the PEO structure is suitable for your situation, our team can review your circumstances and provide practical guidance on whether the arrangement is likely to be appropriate.
How Does a PEO Work in Thailand?
In Thailand, an Employer of Record Thailand or PEO Thailand service is often described as a sponsored work permit Thailand solution.
Under this arrangement, the employee is legally employed by the Thai PEO Thailand provider but works under the supervision of the overseas client. The foreign company manages the employee’s workload, reporting structure, objectives, and performance, while the service provider remains responsible for payroll, tax, Social Security, immigration compliance, and other legal employer obligations.
It is important to understand that this is not simply a way to obtain a work permit. Thai law requires a genuine employment relationship, and the work being performed must fall within the sponsoring company’s registered business activities and licences. Selling or facilitating work permits without a legitimate employment arrangement is prohibited and can expose both the provider and the employee to legal consequences.
A sponsored work permit Thailand arrangement can usually begin one to two months before the employee’s intended start date. By comparison, establishing a Thai company, obtaining the necessary registrations, and becoming ready to employ staff often takes around four months, making an EOR Thailand solution a much faster route for businesses that need to hire quickly.
When Should I Use a PEO vs an EOR in Thailand?
The right choice depends on your specific needs and situation. For most foreign companies, the decision comes down to whether you already have a Thai legal entity or whether you need to start hiring immediately. The three scenarios below cover the most common situations.
Scenario 1: You Do Not Yet Have a Thai Company
If you want to hire employees in Thailand without a company, an EOR Thailand or PEO Thailand service is the only compliant option.
A PEO provider in Thailand uses its own registered Thai entity to employ your staff, sponsor the required work permits and visas, and manage payroll and statutory compliance on your behalf. You retain supervision over the employee’s daily work without having to establish a local company first.
This approach is well suited to businesses that are:
- Testing the Thai market before making a long-term commitment
- Hiring a country manager, sales representative, or technical specialist
- Supporting a short- or medium-term project in Thailand
- Looking to begin operations while company incorporation is still being planned
Using PEO Thailand services allows you to recruit quickly while avoiding the time and cost involved in setting up a Thai company.
However, PEO services in Thailand are not suitable for every business or role. They are intended for specific professional activities, with the PEO acting as the legal employer under Thai law. Work must align with the approved work permit and the PEO’s registered business activities, and a formal service agreement with the overseas company is required. If you’re unsure whether a PEO is the right solution, our team can assess your circumstances and provide practical guidance.
Scenario 2: You Already Have a Thai Company
Once your Thai entity is established, the next step is often obtaining the work permits and visas needed for foreign directors and employees. To support these applications, the company must meet Thailand’s legal requirements, including sufficient registered capital (normally THB 2 million per work permit unless an exemption applies), the required Thai-to-foreign employee ratio where applicable (4 Thai employees per foreign employee), VAT registration where required, Social Security registration for employees, and ongoing accounting, tax, and corporate compliance.
In this situation, a traditional PEO Thailand model allows your company to remain the legal employer while outsourcing many of the day-to-day HR and payroll functions. This may include Thailand payroll outsourcing, monthly payroll processing, PND 1 tax withholding, Social Security filings, employment contract administration, and ongoing HR compliance.
Your employees continue working directly for your Thai company, while the PEO reduces the internal workload associated with payroll and employment administration.
This model is particularly suitable for foreign-owned Thai companies that want to focus on growing the business rather than managing routine HR compliance.
Scenario 3: You Plan to Establish a Thai Company Later
Many international businesses begin with an Employer of Record Thailand solution before moving to their own legal entity once operations become established.
This staged approach combines speed with long-term flexibility. An EOR Thailand enables you to start hiring immediately through PEO arrangement, while giving you time to assess the market, build a local team, and confirm your expansion plans. When the business reaches the right stage, employees can be transferred to your own Thai Limited Company or BOI-promoted company.
VB & Partners supports businesses throughout this process, from initial PEO Thailand onboarding and the associated sponsored work permit Thailand arrangement through to Thai company incorporation and BOI company setup. Working with a single provider helps minimise disruption and creates a smoother transition as your business grows.
What Does a PEO or EOR Service Include in Thailand?
A PEO Thailand service is designed to take care of the employment, payroll, immigration, and compliance responsibilities that come with hiring staff in Thailand. When provided as a PEO solution in Thailand, the service allows your business to employ staff legally without establishing its own Thai entity, while ensuring all statutory obligations are met.
At VB & Partners, our PEO Thailand service covers the entire employment lifecycle, from onboarding through to ongoing compliance.
Work Permit and Visa Sponsorship
For overseas businesses that need to hire employees in Thailand without a company, one of the most important elements is obtaining the correct immigration status.
Because the employment relationship is genuine, the work permit follows from it. As the legal employer, VB & Partners prepares and submits the employee’s Non-Immigrant B visa and work permit applications, together with renewals and supporting documentation where required, and coordinates with the relevant government authorities throughout the process. This is the part of the service commonly described as a sponsored work permit Thailand arrangement, and it always rests on the underlying employment.
Monthly Payroll Processing
Our Thailand payroll outsourcing service includes the monthly calculation and payment of salaries in Thai Baht (THB). Payroll is processed in accordance with Thai labour legislation and agreed employment terms, with payslips and payroll records maintained as part of the ongoing service.
Personal Income Tax Compliance
As the legal employer, the Employer of Record Thailand is responsible for withholding personal income tax from employee salaries and remitting it to the Thai Revenue Department.
Our PEO Thailand service calculates the correct withholding based on each employee’s taxable income, prepares the monthly PND 1 filing, and submits both the return and payment within the statutory deadline.
Enregistrement à la sécurité sociale
Employees must be registered with the Thai Social Security Office (SSO) once employment begins.
Our PEO Thailand service registers eligible employees with the SSO, calculates the required contributions, and submits the monthly filings. Under the current rules, both the employer and employee contribute 5% of salary, subject to a maximum salary base of THB 17,500 per month.
In practice, this caps the contribution at THB 875 per month for the employer and THB 875 for the employee, meaning the maximum social security cost per employee is just THB 875 per month for the employer (THB 1,750 combined), which keeps Thailand among the most cost-competitive locations in Southeast Asia for hiring staff.
Workmen’s Compensation Fund
Employers in Thailand are also required to contribute to the Workmen’s Compensation Fund (WCF), which provides compensation for employees who suffer work-related injuries or illnesses.
As part of our Employer of Record Thailand service, VB & Partners manages these employer contributions and associated compliance requirements.
Employment Contracts
Every employee requires an employment contract that complies with Thai labour law.
Our team prepares employment agreements aligned with the Labour Protection Act, ensuring the terms reflect Thai legal requirements while also supporting your operational needs.
Ongoing HR and Compliance Support
Employment compliance continues long after an employee joins the business.
Our PEO Thailand team provides ongoing HR support, assists with employment-related queries, manages post-onboarding procedures, coordinates work permit and visa renewals, and liaises with government authorities whenever required. This allows your business to focus on managing the employee while we manage the administrative and compliance obligations.
How Much Does a PEO or EOR Service Cost in Thailand?
The cost of a PEO Thailand or EOR Thailand service depends on the employee’s role, immigration requirements, and the level of support required. As a guide, VB & Partners’ PEO Thailand service fees range from THB 15,000 to THB 20,000 per employee, per month.
This monthly fee covers the PEO Thailand service itself, including employment administration, Thailand payroll outsourcing, tax withholding, Social Security administration, HR support, and ongoing employment compliance.
The service fee does not include:
- The employee’s salary
- The employer’s Social Security contributions
- Government fees for the Non-Immigrant B visa and sponsored work permit Thailand applications and renewals
- Other government charges that may apply depending on the employee’s circumstances
Visa application fees and work permit government fees are payable during onboarding and again when renewals are required. For this reason, we recommend requesting a detailed quotation before proceeding so you have a clear breakdown of both recurring monthly costs and one-off government fees.
When compared with establishing a Thai company, the cost difference is significant. Setting up a standard Thai Limited Company requires official and service fees for incorporation, visas, work permits, office requirements, and initial compliance costs are taken into account. Ongoing accounting, payroll, tax, and corporate compliance obligations also continue throughout the life of the company.
For businesses that want to hire employees in Thailand without a company, test the market, or employ a small local team, an EOR or PEO Thailand solution is often the more cost-effective option. It also offers a much faster route to market, with onboarding often completed within one to two months, compared with four months or more to establish a compliant Thai entity capable of employing staff.
If you are unsure which approach is right for your business, our team can compare the costs and timelines based on your hiring plans and recommend the most suitable solution.
Questions Fréquemment Posées
What is the difference between a PEO and an EOR in Thailand?
The main difference is who becomes the legal employer. An Employer of Record Thailand acts as the legal employer: it employs the individual, sponsors the Non-Immigrant B visa and work permit, manages Thailand payroll outsourcing, and handles tax and Social Security compliance. This allows foreign businesses to hire employees in Thailand without a company.
A PEO Thailand service, by contrast, is a co-employment model. Your business already has a registered Thai company and remains the legal employer, while the PEO manages payroll, HR administration, déclarations fiscales, and employment compliance. In practice, many providers in Thailand use PEO Thailand and EOR Thailand interchangeably because they offer both services. The deciding factor is whether you already have a Thai legal entity.
Can I hire employees in Thailand without setting up a company?
Yes. An EOR Thailand or PEO Thailand service enables you to hire employees in Thailand without a company by using the provider’s registered Thai entity as the legal employer.
The Employer of Record Thailand employs the individual, sponsors the work permit and visa, processes payroll, withholds personal income tax, registers the employee with the Social Security Office, and manages ongoing compliance. Your business continues to direct the employee’s daily work, responsibilities, and performance without needing to establish a local company.
How long does it take to hire someone in Thailand using a PEO?
A PEO Thailand or EOR Thailand onboarding process usually takes one to two months, depending on the employee’s circumstances and document preparation.
Preparing the supporting documents for the initial Non-Immigrant B visa often takes up to three weeks, followed by position approval, visa processing, and the sponsored work permit Thailand application. This is considerably faster than incorporating a Thai company, which often takes around four months before it is ready to employ staff.
What does a PEO or EOR service cost in Thailand?
VB & Partners’ PEO Thailand and EOR Thailand service fees range from THB 15,000 to THB 20,000 per month.
This fee covers the Employer of Record Thailand service, including employment administration, Thailand payroll outsourcing, tax withholding, Social Security administration, and ongoing compliance. Employee salaries, employer Social Security contributions, and government fees for visa and work permit applications are charged separately.
We provide a detailed quotation within 24 hours, giving you a full breakdown of both recurring and one-off costs before you proceed.
Is it legal to hire foreign employees through a PEO in Thailand?
Yes, provided the employment arrangement is genuine and complies with Thai law.
An Employer of Record Thailand cannot simply obtain a work permit for someone without a legitimate employment relationship. The employee’s duties must genuinely align with the sponsoring company’s registered business activities and licences. Thai law prohibits selling or facilitating work permits outside a genuine employment arrangement.
VB & Partners structures every PEO Thailand and EOR Thailand engagement to comply with Thai labour, immigration, and corporate regulations.
Which jobs are foreigners not allowed to do in Thailand, even through a PEO?
Thai law reserves a number of occupations for Thai nationals. The Notification of the Ministry of Labour on Prohibited Occupations for Foreigners B.E. 2563 (2020) restricts 40 occupations, of which 27 are strictly prohibited, including motor vehicle driving, hairdressing, Thai massage, tour guiding, secretarial and clerical work, street vending, and most legal services. A further group, including accounting, civil engineering, and architecture, is open to foreigners only under specific conditions or international agreements.
A PEO Thailand or EOR Thailand arrangement cannot change this. A work permit is issued for a specific position, and a position reserved for Thai nationals cannot be sponsored by any employer, including an EOR. This is why our service is limited to eligible professional roles such as consulting, advisory, IT services, and business development.
When should I switch from a PEO to my own Thai company?
Many businesses begin with an EOR Thailand solution to enter the market quickly and then establish their own company once operations grow.
Common reasons to transition include expanding beyond three or four employees, securing long-term contracts in Thailand, or deciding to establish a Thai Limited Company or apply for BOI promotion. At that stage, moving from a PEO Thailand arrangement to your own entity can provide greater operational flexibility and may become more cost-effective over the long term.
VB & Partners supports both Employer of Record Thailand services and Thai company incorporation, allowing businesses to move from an initial PEO Thailand solution to their own legal entity with minimal disruption.
Hire in Thailand the Right Way – VBA Partners Handles Both Models
Whether a PEO Thailand or EOR Thailand solution is right for your business depends on one key question: do you already have a registered Thai company? If you do, a PEO Thailand service can simplify payroll, HR, and employment compliance. If you do not, an Employer of Record Thailand, often called a sponsored work permit Thailand arrangement, is the only compliant way to hire employees in Thailand without a company. Either approach removes much of the administrative burden of employing staff under Thai law.
VB & Partners provides PEO Thailand and EOR Thailand services for foreign companies, investors, and individual operators expanding into Thailand. Our English- and French-speaking team is licensed by the Federation of Accounting Professions and has successfully managed hundreds of work permit and visa sponsorships. PEO Thailand service fees start from THB 15,000 per month, with transparent pricing and ongoing compliance support.
If you are considering hiring in Thailand, contact VB & Partners for a fixed-price quotation tailored to your requirements. We provide a detailed, no-obligation quote within 24 hours, helping you compare the costs, timelines, and suitability of a PEO Thailand or Employer of Record Thailand solution.
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