How To Open A Restaurant in Thailand
If you dream of opening a restaurant in Thailand or expanding your existing restaurant there, now is a great time to make it happen. Thailand is known for its hospitality towards people from around the world, and there is a strong demand for restaurants in the country.
Thailand isn’t just a destination for massive tourist crowds; it also boasts a large and vibrant expat community where people can socialize after work. Enjoying delicious Thai or international cuisine has become a cultural staple in Thailand, contributing to the country’s rich culinary landscape. As our team collaborates with various restaurants for our clients, we would like to provide you with an overview of how to open a restaurant in Thailand.
Foreign Ownership Right Regulation
Many of you may wonder whether a foreigner can fully own a restaurant in Thailand. Unfortunately, under Thailand’s Foreign Business Act (FBA), restaurants are classified as a List 3 activity, which limits foreign ownership to only 49%. This means that at least 51% of the company’s shares must be held by Thai nationals or Thai entities.
As a result, to open a restaurant in Thailand, most entrepreneurs choose to establish a Thai Limited Company, which is a common and practical option. Additionally, appointing a reliable Thai director can significantly simplify the licensing process and facilitate interactions with local authorities.
License & Permits
Food and Beverage License (F&B): This license ensures that the restaurant meets the requirements and receives approval from the Thai FDA regarding health and safety standards.
Restaurant License: This license officially permits your establishment to operate. Regular renewals and compliance checks are necessary for maintaining this license. An inspection of the restaurant is conducted to verify adherence to food storage, sanitation, and safety protocols.
Liquor License: If you want to sell alcohol in your restaurant, you will be required to obtain a liquor license.
Building & Safety Permit: To start renovations or new construction, you’ll need a Construction Permit, a Building Registration to confirm location suitability, and a Fire Safety Certificate to ensure safety measures are in place. You may also require environmental permits for significant local impact and signage permits for outdoor advertising.
Step-by-Step to Open a Restaurant in Thailand
- Choose your restaurant’s location: As it is a key matter of the restaurant business, you need to have a prime location. Got your location and consider registering it officially at the Land Office, provide the long-tern protection.
- Register Your Company: Opening a restaurant in Thailand requires registering the company with Thailand’s Department of Business Development (DBD). You will need:
- Memorandum of Association: Details your business objectives and capital structure.
- Articles of Association: Defines your company’s internal governance.
- Shareholder & Director Information: IDs and address verification of all stakeholders.
- Apply for Licenses: Obtain the necessary licenses, including those for the restaurant, liquor, music, and food. Each type has specific application procedures and compliance requirements.
- Company Bank Account: Once everything is ready for operation. Register your company bank account to simplify your monthly transactions, tax and payroll
- VAT Registration: Register for Value-Added Tax (VAT) if your annual revenue exceeds 1.8 million THB or if you are employing foreign nationals.
- Social Security Registration: A necessary step for hiring Thai employees at your restaurant is to enroll them with the Social Security Office (SSO).
