Yes, foreigners can open a bar in Thailand only if they have proper permits and comply with Thai regulations. There are ample bars or restaurant-cum-bars in Thailand that have foreign owners. But yes, there is legal nitty-gritty too.
The Initial Steps
Primarily, to open a bar in Thailand, you must incorporate a juristic entity, like a Limited Thai company in general. For incorporation of the same, you will need to reserve the company’s name. You have to do this name reservation on the basis of your preference(s), the scope of your business, and its objectives.
Keep in mind that your company name cannot be similar to any other company’s name. Additionally, there is a restriction on the use of certain words. After the approval of the company’s name, you have to file a Memorandum of Association with the Department of Business Development of Thailand. The Memorandum registration fee is 500 baht for every 100,000 baht of registered capital. The minimum fee is 5,000 baht, whereas the maximum government fee can reach up to 250,000 baht.
Final Steps
Finally, you have to convene a statutory meeting and pay a minimum of 25% of the value of each share. The directors must submit their application to incorporate the company within 60 days of the beginning of operations. Furthermore, you have to apply for a tax identity card, for which you will need a company seal.
The company must have 3 Shareholders/Promoters and at least 51% of the shares must hold Thai ownership. Take note that the Promoters of the company must be individuals. In the later phases, the Promoter becomes Shareholder before transferring the shares to your designated juristic entity.
However, if you do not qualify for the aforesaid type of entity, you could be introduced to a Joint Venture service whereby a Limited Company in Thailand can be a 51% shareholder in your company with an agreement stating that this company will have a minimal voting right (as required by the law) and no entitlement to yearly dividends.
With this, you are secure in the knowledge that this will fulfill the Government requirement for 51% Thai ownership of the company with no risk to yourself.
The fee for the Joint Venture service is 20,000 Baht per year and if you wish you can cancel this arrangement at any time and transfer the shares held by the introduced Joint Venture to your designated and/or desired Thai entity(ies). To open a bar in Thailand you will need to obtain an Alcohol and Food license in Thailand.
