How do you start a restaurant in Thailand? This is a question that may have crossed your thoughts. Don’t be worried! The answer is in this article – and you will be able to open your restaurant in a matter of days.
As you may be aware, Thailand is a vast food market with a wide range of options and locations to go on a culinary experience, including street food, Thai restaurants, fine dining, bars, and coffee shops.
Moreover, Thailand has opened its doors to international investors interested in selling or vending international food in the country. Furthermore, Thailand has numerous tourist attractions that many tourists from around the world want to visit. In addition, much of the tourism area has a large number of eateries that cater to tourists.
If you are thinking about starting your own business in Thailand 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.
Mandatory Requirements to Start Restaurant in Thailand
The following is a list of standards that must be met before you may start a restaurant in Thailand.
Company Name
We recommend that you use the same name for your business as you do for your restaurant. This will help you have smooth sailing in terms of verification and inspection. And it’s even better for your business marketing.
Company Address
We recommend that the corporate address be the same as your restaurant’s address as it pertains to the tax and VAT issues.
If you are not having any specific address in mind or acquisition, you can use the address of a law firm that can help you with this. Then, after starting the procedure, you can adjust to the actual address of the restaurant.
Company Director
A minimum of one director is mandatory to register a company in Thailand. When it comes to the restaurant business, the company must have a Thai Director from the start. This is because a foreign director will not have a Work Permit at the time of business registration.
Therefore, you’ll need the Thai Director to sign all applications after the company is established, including VAT, social security, and a food business license, among others.
After the setup is complete, this Thai director has the option to resign or change.
Company Shareholder
In order to form a company 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 or director, the company must have a minimum paid-up capital of 2 million Thai Baht.
A director or staff must have the authorization for commercial cooking. The department of Health of Thailand approves such license that is personal to the person having it. It is not the company’s property.
You can, however, start a business without a license holder. But you have to find such a person as soon as your restaurant starts and before acquiring a Food Business License.
Process to Start Restaurant in Thailand
Just to let you know that these are the actual processes we completed in order to open restaurants and coffee shops in Thailand for our clientele in Bangkok.
Someone else’s process may differ from ours, and we respect that.
Here are our steps –
Stage 1: Company Registration in Thailand (Duration: 7-8 days)
| Steps | Activity |
| 1 | Provide all of the above information to our lawyer to start a restaurant in Thailand. |
| 2 | Our lawyer will compile all of the necessary paperwork to register your business in Thailand. |
| 3 | The director and shareholder must meet with our lawyer to sign all necessary paperwork. |
| 4 | Re-establish contact with at least one Thai Director. |
| 5 | Procure an office space. It can be a virtual office as well. Otherwise, you can use the lawyer’s office as a virtual office just for company registration purposes. |
| 6 | The lawyer will then file for the company’s registration in Thailand with the Department of Business Development, or “DBD.” |
Stage 2: Draft & Review Lease Agreement of your Lease Agreement (Duration: 10 days)
| Steps | Activity |
| 1 | Complete the Company Registration Process and obtain all incorporation documents. The documents must hold the registered company name, authorized Director’s name, Shareholders’ name(s), Company Address, and Business Goals. |
| 2 | Use these documents to enter into a contract or lease agreement to start a restaurant in Thailand. Remember that the “Lessee” on the Lease Agreement will be the Corporate Identity and not your real name. |
| 3 | Once you select the Property suitable to start a restaurant in Thailand, our lawyer will draft a Lease Agreement. It will be in both English and Thai language. |
| 4 | In case you receive the Lease Agreement from the Property Owner, our Lawyer will review and evaluate the same. We will do so to safeguard your benefits and modify unfavorable conditions. |
| 5 | Sign the Lease Agreement in the presence of our Lawyer to start your restaurant. |
| 6 | Use this Agreement for further legal formalities like VAT Registration, Social Security Registration, ISO Certification, etc. We will help you with all these as per your requirements. |
Tip: While your lawyer is working on the next stage, you can begin decorating your shop to get it ready for business.
Stage 3: Change Company’s Address to Actual Address (Duration: 2 Days)
This step is very crucial if you have used a virtual office address or our office address for the registration of your company in Stage 1.
It is because all other registrations, such as VAT registration and Social Security, will need the physical corporate address.
Stage 4: VAT Registration (Duration: 2 Days)
| Steps | Activity |
| 1 | Our Lawyer will provide you with VAT Registration form PP.01 to fill up the details. We will assist you in this process. |
| 2 | We will send your duly filled-up form to the Revenue Department of Thailand. |
| 3 | You will receive the official VAT Certificate from the Revenue Department at your corporate address. |
Stage 5: Opening Company Bank Account with Online Payment Tools (Duration: 1 Day)
We will prepare all of the documentation required to open a bank account.
Aside from that, you should use some of the bank’s banking instruments to assist you in running your firm, like:
- Internet banking
- Payroll system
- Credit card machine
- QR code for payment
Tip: You can participate in bank promotions such as discounts for clients who pay by credit card.
Stage 6: Apply for Licensed Storage & Distribution of Food – Food Business License (Duration: 15 Days)
Please keep in mind that this is the final stage. Because the decoration of your restaurant or shop must be completed completely initially.
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.
Requirements 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 must have someone who has completed the Department of Health’s training to support the application.
If you don’t have this person, you can enlist the help of our firm.
What to do after you Start a Restaurant in Thailand?
After you set up the company, you have to do the following:
- Register the 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 payment 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 (and yourself as the director).
- Keep your restaurant in good standing to comply with the Municipality’s rules.
The Bottomline
Many investors and/or business owners want to start a restaurant in Thailand, which can also contain a bar and a coffee shop.
However, as a foreigner, you must properly set up your business in Thailand and adhere to all rules and regulations. Remember 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.
Choose us and let’s work together to achieve our goals! Email us at [email protected].
