How do you start a restaurant in Thailand? This is a question that may have crossed your thoughts. Don’t be concerned! The answer is in this article, and you may open your restaurant in a matter of days. This article is by a corporate lawyer with extensive experience to start restaurants, coffee shops, and bars in Thailand.
However, if you want to open a bar, you’ll need to apply for an Alcohol and Cigarette license separately. You will have a better understanding of the requirements and procedures. We want you to realize that if you want to start a business that caters to food and beverages, you must first obtain a license for food distribution or storage. In this article, we’ll refer to it as a “Food Business License” to make things easier.
The Thai food market is vast with a wide range of options and locations to go on a culinary experience. This includes street food, Thai restaurants, fine dining, bars, and coffee shops. Additionally, Thailand is open to foreign investors willing to sell or vend international food in the country.
Furthermore, Thailand has numerous tourist spots attracting tourists from around the world. Additionally, much of the tourism area has a large number of eateries that cater to tourists. If you are thinking about starting your own business or need to operate a restaurant, coffee shop, or bar, here is some useful information that will help you open and maintain your business lawfully.
Checklist: Open a Restaurant in Thailand
The following is a list of standards that must be met before you may open a restaurant in Thailand.
Name of Your Company
We recommend that you use the same name as your restaurant. Because the government official inspecting your firm will not be perplexed, you will have smooth sailing in terms of verification and inspection. And it’s even better if you’re also doing business marketing.
Company Address
Your Corporate address must be the same as the address of your restaurant as it pertains to the tax and VAT issues. If may not have a specific site in mind for your restaurant yet. In that case, you have to form a business first. Henceforth, you can use the incorporation documents to engage in a Lease Agreement with the landlord. Moreover, you can use the address of a law firm in Thailand that can help you with this. After that, you can change it to the actual address of the restaurant, before starting the operation.
The Company Director
In Thailand, a business must have at least one director for its legal formation. This director can be a foreigner or a Thai national. Alternatively, the two of you might work together as a director.
However, when it comes to the restaurant business, the company must have a Thai Director from the start.
Why?
It is because a foreign director cannot have a Work Permit at the time of setup. Additionally, one cannot apply for it right after company formation. Therefore, you’ll require the Thai Director to sign all applications after company formation. This includes VAT, social security, food business licenses, and so on. After the setup is complete, this Thai director has the option to resign or change.
Shareholders of the Firm
For company formation in Thailand, you must have at least three shareholders (can be more than 3). At least 51 percent of the total shares must be held by a Thai shareholder (or can be more). If you don’t have one, you’ll need to get a Thai trustee.
Registered Capital
To engage one foreign worker/director, the company must have a registered capital of 2 million Thai Baht. You must have a license from the Department of Health providing authority to the individual or staff to cook in your restaurant in Thailand.
Moreover, this license is personal to the person who holds it. It is not the company’s property. It isn’t the Food Business License, either. However, to apply for it you’ll need this individual. Moreover, you can start your business without this individual first. Henceforth, you can find this person after the company is set up but before obtaining the Food Business License.
The Process to Open a Restaurant in Thailand
Step 1: Set Up a Company in Thailand
You can provide all of the following information to the lawyer who will help you open a restaurant in Thailand. The lawyer will next compile all of the necessary paperwork to start a business in Thailand.
Following that, the director and shareholder must meet with the lawyer to sign all necessary paperwork in order to begin the company’s establishment in Thailand. You must re-establish contact with at least one Thai Director.
In this state, you can use the lawyer’s office as a virtual office just for company registration purposes. The lawyer will then file for the company’s registration in Thailand with the Department of Business Development, or “DBD.”
Finally, you will receive the documents necessary for incorporation. Below are some samples of corporate documents (the original is the Thai language, this is a translation for your understanding). It will take roughly a week to complete this phase.
This step will take about one week to accomplish.
Step 2: Lease Agreement for Restaurant business in Thailand.
After the company formation, you must obtain the company incorporation documents. Important information such as the company’s name, authorized director’s name, shareholder’s name, address, the business purpose will be in the company document.
Now using this document, you can enter into a contract or lease agreement to start a restaurant in Thailand. As a result, the “Lessee” on the Lease Agreement will be the corporate name. Moreover, you can utilize this agreement for a variety of purposes, including VAT registration, Social Security Registration, and so forth.
In order to safeguard your benefits and modify unfavorable conditions, the lawyer must evaluate the Lease Agreement for you. Additionally, the lawyer must draft both a Thai and an English version of the Lease Agreement. Finally, you can sign the Lease Agreement with the landlord as one of the directors. You now have enough room to expand your restaurant.
This stage will take around a week or more, depending on the outcome of the negotiations.
Step 3: Change of Company Address
You must change the company address on the registration paperwork from the lawyer’s office to the actual address. Other registrations, such as VAT registration, Social Security, and so on, will display the true address. This step takes only a few days.
Step 4: VAT Registration
The company must register for VAT in order to do business effectively in Thailand. The VAT registration form is also known as PP.01. The official certificate will then be sent to the company address by the Revenue Department. It’s known as PP.20.
Step 5: Opening the Company Bank Account
You will need a Corporate Bank Account for your restaurant business in Thailand. We will prepare all of the documentation you will need to open the bank account. Aside from that, you should use some of the bank’s banking instruments to assist you in running your firm, such as:
- Internet banking
- Payroll system
- Credit card machine
- QR code for payment
Step 6: Apply for Licensed Distribution or Storage of Food
Please keep in mind that this is the final stage. Because the decoration of your restaurant or shop must be completed entirely beforehand. Then we’ll be able to file an application for this license. After that, the Officer will come to your restaurant to inspect it to see if it adhered to the local laws and regulations. They will issue the license within 15 days of their agreement.
Requirement for Food Business License
- Thai ID card and house registration of the director.
- House registration of the business place.
- Company Incorporation document.
- Consent letter and Lease Agreement from the area’s owner.
- Power of Attorney.
- Certified Food Handler Card.
- Medical Certificate of the Food Handler.
- A certificate that passed training from the Department of Health.
- Map.
Please keep in mind that the company’s application must be supported by the individual who completed the Department of Health’s training. If you don’t have this person, you can enlist the help of our firm.
What to do after setting up a restaurant business in Thailand
After you set up the company, you will have the duty and responsibility as listed below.
- Register Social Security and put your staff into the list of Social Security.
- Submit withholding tax report and pay to the Revenue Department within the date 7th of each month.
- Submission of VAT report and pay to Revenue Department within the date 15th of each month.
- Submit a Social Security report and pay to the Social Security within the date 15th of each month.
- Pay salary to your staff.
- Keep your restaurant in good standing to comply with the Municipality’s rules.
Conclusion
Many investors and/or company owners dream of opening a restaurant in Thailand, complete with a bar and coffee shop. Because Thailand welcomes travelers and is one of the ASEAN countries with a rising tourism industry, this type of business has a lot of potentials.
However, as a foreigner, you must properly set up your business in Thailand and adhere to all applicable laws and regulations. Keep in mind that if you’re selling food or anything else that people eat, you’ll need to have a Licensed Distribution or Storage of Food license.
As you can see from the above information, the entire procedure is not simple, and you will most likely be unable to do it on your own because all application forms are written in Thai. As a result, you’ll want to find someone who is knowledgeable about the procedure to accompany you. We can be one of your candidates because our firm has always done this type of business for our international clients, and we have also served in the franchise business for many years.
Choose us and let us grow together! Email us at [email protected].
