A license for businesses under List 2 and List 3 may be obtained from the Ministry of Commerce with the approval of the Cabinet and the Director General with the consent of the Foreign Business Board respectively. Conditions attached to foreign business licenses are minimum capital of 3,000,000 Baht (Non-restricted foreign businesses require a minimum capital of 2,000,000 Baht), minimum debt/equity ratio, number of foreign directors resident in Thailand, amount of period of investment, technology and assets, etc.

For List 2 businesses, Thai persons must own a minimum of 40 percent of the shares and at least 2/5 of the directors must be Thai.

The employers with one or more employee have to submit the registration forms within 30 days by themselves or authorized person at the Social Security Office (SSO). The employers also have to inform the Office by filling forms when the number of employees increases and decreases.

The contribution made to the Fund is from employers, employees, and government. Employers must deduct 4% of an employee’s monthly wage, and contribute the same amount of employee. With monthly wage at minimum and maximum of Baht 1,650 and Baht 15,000 respectively, the monthly contribution is ranged from Baht 66 to Baht 600.
*Note: the rate will change to 5% from January 1, 2004 onwards.

The benefits for registered employees cover Sickness of Injuries Benefit, Maternity Benefit, Invalidity Benefit, Death Benefit, Child Allowance and Old-Age Benefit. A Company should study the details of each benefit and understand the qualified conditions to receive each benefit.

WCF must be registered at the same time of registration of Social Security Fund, i.e. within 30 days from the date of the establishments have 1 or more employees.

Employers make the contribution annually and the amount of contribution will be assessed by WCF, which is calculated from total wages of employees multiplied by contribution rate of that type of business. The contribution rate from 0.2% to 1.0% of wages is based on risk rating of establishment type classified by industrial classification. The rate may change in the fifth year of contribution depending upon the accident record of their business.

Licenses granted are valid until the end of the fifth calendar year from the year in which the business started operations, unless the factory is transferred, leased or subject to hire purchase, or if operations stop. In these cases, the license is regarded as having expired when a license is issued to the factory’s new operators or when the operations are ceased. Prior to the date of expiration, a Company must submit an application for renewal of licenses together with a fee of 100,000 Baht. If an application is submitted after the expiry date but within 60 days, it will be processed normal, however, with an additional fee of 20,000 Baht.