Imagine a calm atmosphere by the beaches, where people enjoy work while sipping espressos. Isn’t that soothing?
For a long time, you wanted to build a cafe where busy professionals and social butterflies can enjoy refreshments. Amid the hustle of cityscapes, cafe business in Thailand is more than just a plan—it’s a call for peace.
Let’s see the procedure:
Starting a small cafe business in Thailand
Step 1: Choose a favorite spot for a business location in Thailand to put up your cafe
Step 2: Finalize the registration process by determining the company structure of your cafe
Step 3: Appoint a Thai Director to monitor the cafe registration process
Step 4: Register the cafe under an LLP structure within 2 weeks through the Ministry of Commerce, Thailand
Step 5: Complete VAT Registration documentation to apply for the work permit
Step 6: Undertake the social security registration for a minimum of 4 Thai employees
Step 7: Apply for a Food License within the next 2 months
Step 8: Complete the Work Permit application by applying for WP3 (Business Visa) in 2 days.
To learn more, visit
https://www.konradlegal.com/2024/02/19/how-to-start-a-food-and-beverage-company-in-thailand/
What is the cost of opening a cafe business in Thailand?
Setting up a small cafe in Thailand will cost a minimum of 2,000,000 THB. Additionally, you can avail of the corporate tax exemption for up to 8 years in Thailand.
Hereafter, a foreigner requires an investment of a minimum of 40 THB to 200 THB to set up a cafe in Bangkok.
What is the food law in Thailand?
As per Section 30 (1) of The Food Act B.E. 2522 (1979), the FDA of Thailand directs the licensee to amend the food production or storage site. Moreover, a licensee of the food production/ factory site must incorporate changes to ensure the validity of operations.
However, the FDA Regulation in Thailand requires foreigners to get a license for these types of foods:
- Food containing labels
- Controlled food
- Food with specific quality or standards
- Food ingredients imported
- Food ingredients exported
Mistakes to avoid in owning a cafe business in Thailand
1. Owning a majority of company shares
Caution: A foreign business owner needs at least three shareholders to start a business in Thailand. Accordingly, one shareholder must be a Thai director holding 51% of the shares.
Thereafter, you’ll require a foreign business license to stay protected from the FBA restrictions.
2. Absence of a registered lease for business
Many foreigners think buying a 200 m² area for a cafe in Thailand is easy. However, under Sec. 540 of the Civil and Commercial Code, a foreigner can get a lease for a max. 30 years.
So, if you don’t register the plot, the property owner may decline your land rights later.
3. Recruiting foreign skilled expertise
Under Thai regulations, an employment ratio of 4:1 is the minimum requirement for opening a food and beverage business. Likewise, you need to keep at least 4 Thai employees.
Even though you want to keep a foreigner employed in your café, you will need some documents like:
- Work permit
- Police clearance certificate
- Non-immigrant B visa
4. No license for food handling practices
What if your dream café in Bangkok shut down in 7 days due to a lack of food license?
Therefore, to protect your small cafe business, you should apply for the following documentation:
- License for Food Production (Form Orr. 2)
- Certificate of Food Recipe Registration (Form Orr. 18)
- Certificate of Food Label Permit (Form SorBor. 3/1)
Additionally, the following documents are required from the food handler:
- Certificate of Food Detail Declaration (Form SorBor. 7/1)
- Medical Certificate of the Food Handler
- Certificate of Training completion from the Department of Health
Note: If you want to apply for a food license for a large area, 3000 THB is required. However, small takeaway cafe stores may need approximately 200 THB.
5. Avoiding documents for social security
As a company director, you must contribute 5% of each staff member’s salary, up to a maximum of THB 750 per month. Along with it, you must prepare an updated ‘Social Security Report’ every 15th of each month.
Conclusion
Consequently, Thailand presents the most cost-effective choice for foreigners wanting to establish a cafe. At Konrad Legal, we facilitate a seamless registration process for launching a cafe business in Thailand.
