Home / Global Recruiting Guide / Employing in Thailand: Why U.S. Companies Choose Gonex as Their Payroll/EOR Provider

Employing in Thailand: Why U.S. Companies Choose Gonex as Their Payroll/EOR Provider


For U.S. companies looking to expand their operations into Thailand, the intricacies of establishing a legal entity and managing payroll can be daunting. The challenges of navigating local employment laws, coupled with the high costs and time commitments required, make this an area ripe for expert assistance. This article delves into the reasons why using an Employer of Record (EOR) like Gonex is not only a practical choice but also a strategic advantage for U.S. businesses in Thailand. We will compare the processes and challenges of setting up entities in Thailand and Singapore, highlight common issues faced by businesses in Thailand, and explain how Gonex can mitigate these problems.


Why Use an EOR in Thailand

Setting up a business entity in Thailand involves several complex steps that can be challenging, especially for smaller businesses or those new to the Southeast Asian market. The primary hurdles include navigating a foreign legal system, understanding cultural business norms, and managing bureaucratic procedures that can be significantly different from those in the United States.

For companies sending a small number of expatriates or hiring a handful of local employees, the cost and time investment needed to establish a Thai entity do not make economic sense. Establishing a company in Thailand can take over six months and cost upwards of $15,000, considering legal fees, registration fees, and administrative costs.


Entity Setup Processes: Thailand vs. Singapore

Thailand: Setting up a business entity in Thailand is intricate. The process involves multiple steps, such as registering with the Department of Business Development, obtaining investment promotion privileges from the Board of Investment (if applicable), and adhering to specific regulations depending on the type of business. Each step is fraught with potential delays and requires local legal expertise to navigate effectively.

Singapore: In contrast, setting up a business entity in Singapore is relatively straightforward. The process is highly streamlined and can be completed within days. The government offers clear guidelines and robust support for foreign businesses, making Singapore one of the easiest places in Asia to establish a new company.


Common Employment Challenges in Thailand

Companies operating in Thailand often encounter several employment-related challenges. These include:

Compliance with local labor laws, which differ significantly from U.S. laws and can change frequently.

Managing payroll in compliance with Thai tax regulations and social security requirements.

Cultural and language barriers that can lead to misunderstandings and miscommunications in HR practices.


How Gonex Mitigates These Issues

Gonex, as an EOR provider, offers solutions tailored to overcome these challenges:

Legal Compliance: Gonex ensures full compliance with Thai employment laws, tax regulations, and social security mandates.

Local Expertise: With teams on the ground, Gonex manages all HR tasks, including hiring, onboarding, and payroll management, thus bridging any cultural or communication gaps.

Cost-Effectiveness: Using Gonex eliminates the need for physical presence and legal entity setup in Thailand, which can save significant amounts of money and time for U.S. companies.


Gonex’s Advantages Summarized

Gonex offers several compelling advantages for U.S. businesses operating in Thailand:

Cost Savings: Avoids the high costs associated with setting up and maintaining a legal entity.

Speed: Quick setup allows companies to have their operations up and running in no time.

One-Stop Service: Provides a comprehensive range of services from employment contracts to payroll processing and legal compliance, all managed by a single provider.



For U.S. companies aiming to tap into the thriving markets of Thailand, the challenges of entity setup, employment, and payroll management can be significant obstacles. Gonex offers a streamlined and cost-effective solution that simplifies these processes and ensures compliance with local regulations. By choosing Gonex as your payroll/EOR provider, your business can enjoy the benefits of rapid market entry, reduced overhead costs, and comprehensive administrative support, allowing you to focus on your core business activities and growth strategies in Thailand.


Why Gonex?

Experienced Management Team: each member in the team has 10+ years experiences in Overseas Human Resources Management, composed of seasoned HR professionals.

Powerful connection: Gonex has established over 10 entities worldwide, along with more than 30 stable partners, together offering the most comprehensive overseas human resource services to our clients.

Strict compliance with laws and regulations: At every step in our service process, Gonex strictly adheres to local laws and regulations, ensuring our clients completely avoid any legal disputes.

Competitive price: Gonex’s services are 20% more affordable compared to other companies in the industry, allowing our clients to allocate more resources to their core business.


What Gonex offer?

Employment of Record: This service helps clients legally hire employees in countries or regions where they do not have a legal entity established.

Payroll BPO service: This includes payroll project implementation plan development, project deployment, payroll calculation, payment of funds, administration of statutory and supplementary benefits, customized reporting, and other comprehensive payroll services.

Mobility: Based on the company’s internationalization strategy, the company assigns employees to overseas branches/subsidiaries and handles visa and tax matters in accordance with local policies, while assisting in the compliance management of employees throughout their international assignment life cycle.


GONEX One-Stop Solution: Your strategic partner

In navigating these challenges, GONEX offers comprehensive solutions tailored to the needs of American companies expanding into South Korea:

Compliance and Legal Adherence: GONEX’s Employer of Record (EOR) service ensures legal compliance in employing local staff.

Cross-Border Payroll and Tax Management: Streamlined payroll services simplify cross-border management.

Flexible Employment Solutions: Adaptable employment services cater to changing business needs.

International Talent Dispatch: Support services facilitate the dispatch of key talent to Japan.

Digital HR Management Platform: Technology-driven solutions enhance management efficiency and cultural integration.


Who do we serve?

Gonex served 70+ clients to expand overseas. The incomes of our clients like Mengniu, Kuaishou and CHINT are up to 192.4 billion.


Let Gonex assist you and your company with handling such complex overseas hiring processes! To access more information on corporate international expansion cases, global employment guidelines, worldwide compensation management, regulations for various regional countries, and factory establishment manuals in different nations, you are welcome to visit the GONEX official website at www.letsgonex.com to download these resources or view our company’s business introduction in PDF format (https://letsgonex.com/in.pdf).

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