Introduction
Thailand is one of the world’s top tourist destinations, attracting millions of visitors annually for its vibrant culture, stunning landscapes, and world-famous cuisine. The country’s thriving food scene makes it an excellent destination for restaurant entrepreneurs, but setting up a restaurant as a foreigner requires proper registration, legal compliance, and strategic planning.
Foreign investors must navigate the Foreign Business Act, taxation, business licensing, and work permit laws before launching a restaurant.
That’s where BillionPreet comes in! Whether you need help with company registration, legal compliance, taxation, or market entry, BillionPreet provides expert consultation and step-by-step business guides to help entrepreneurs successfully establish their businesses in Thailand.
1. Can Foreigners Open a Restaurant in Thailand?
Understanding the Foreign Business Act
Thailand’s Foreign Business Act (FBA) regulates how much of a business a foreigner can own. Here’s how it applies to restaurants:
✅ Foreigners CAN own restaurants but must comply with FBA rules.
✅ If a foreigner owns 50% or more of the company, a Foreign Business License (FBL) is required.
✅ Many foreign investors avoid the FBL requirement by setting up a Thai Limited Company with local partners.
✅ 100% foreign ownership is only possible through BOI promotion (rare for restaurants).
2. Types of Business Structures for Foreigners in Thailand
Foreigners can set up a business under several legal structures. Here are the most common:
(1) Thai Limited Company (Most Popular) ✅
✔ Up to 49% foreign ownership (Thai partners must hold at least 51%).
✔ No Foreign Business License required (easier process).
✔ Common choice for restaurants, cafes, and food businesses.
(2) Fully Foreign-Owned Business (Requires FBL) ❌
✔ Foreigners can own 100% but need a Foreign Business License.
✔ Approval is difficult and costly—not recommended for small businesses.
(3) Joint Venture with a Thai Partner 🤝
✔ Foreign investors partner with a Thai company or individual.
✔ The Thai partner holds a controlling stake but profits and responsibilities can be negotiated.
(4) BOI-Supported Business (Rare for Restaurants) 🚀
✔ 100% foreign ownership possible if BOI (Board of Investment) approval is granted.
✔ BOI incentives are usually for tech-based or export-driven food businesses.
For most restaurant owners, the best option is a Thai Limited Company, as it allows 49% foreign ownership while avoiding complex licensing.
3. Step-by-Step Guide: Setting Up a Thai Limited Company for a Restaurant
Step 1: Reserve a Company Name
📌 Apply with the Department of Business Development (DBD).
📌 The name must be unique and comply with Thai company naming rules.
Step 2: Prepare the Memorandum of Association (MOA)
📌 Includes company objectives, shareholding structure, and capital details.
📌 Requires at least three shareholders (foreigners can own up to 49%).
Step 3: Register the Company with the Ministry of Commerce
📌 Submit company documents, including Articles of Association and shareholder agreements.
Step 4: Open a Corporate Bank Account
📌 Required to deposit the registered capital.
📌 Helps facilitate business transactions, tax payments, and employee salaries.
Step 5: Obtain a Tax Identification Number (TIN)
📌 Register with the Revenue Department within 60 days.
Step 6: Apply for VAT Registration (if annual revenue exceeds 1.8 million THB)
📌 Restaurants with lower revenue can operate under standard tax rules.
Step 7: Obtain Business Licenses
📌 Apply for Food License, Alcohol License, and Health & Safety Permits.
📌 BillionPreet offers guidance on business licensing & compliance.
Step 8: Apply for Work Permits & Visas (For Foreign Owners & Staff)
📌 A foreign director or manager must have a work permit to legally run the restaurant.
📌 BillionPreet assists with visa & work permit applications.
4. Essential Licenses for Restaurants in Thailand
✅ Food License – Mandatory for all food-related businesses.
✅ Alcohol License – If selling alcoholic beverages.
✅ Music License – Needed if playing background music.
✅ Signboard License – Required for outdoor signage.
✅ Sanitary Permit – Approval for food handling and kitchen operations.
BillionPreet provides step-by-step guidance on obtaining business licenses to ensure a smooth restaurant launch.
5. Taxation & Compliance for Restaurant Businesses
📌 Corporate Income Tax (CIT) – Standard corporate tax applies.
📌 VAT (Value-Added Tax) – 7% VAT applies if revenue exceeds 1.8M THB/year.
📌 Withholding Tax – Applies to salaries and rent payments.
📌 Financial Audits – Businesses must file annual financial reports.
Failing to comply with tax laws can result in penalties. BillionPreet offers expert financial consultation to ensure full compliance.
6. Common Mistakes to Avoid When Opening a Restaurant in Thailand
🚫 Choosing the Wrong Business Structure – Not all structures allow foreign control.
🚫 Ignoring Legal & Licensing Requirements – Operating without the right licenses can result in heavy fines or shutdowns.
🚫 Underestimating Tax & Compliance Costs – Proper tax planning is crucial for profitability.
🚫 Not Having a Local Partner or Legal Advisor – BillionPreet provides business registration & compliance services to help avoid these mistakes.
Why Choose BillionPreet for Business Setup in Thailand?
Setting up a restaurant in Thailand as a foreigner is 100% possible but requires careful planning and legal compliance.
That’s why BillionPreet is the best partner for foreign entrepreneurs looking to establish businesses in Thailand.
✅ Business Registration – Hassle-free setup for Thai Limited Companies.
✅ Legal & Licensing Support – Expert guidance for obtaining food & alcohol licenses.
✅ Tax & Accounting Services – Compliance with Thai tax regulations.
✅ Visa & Work Permit Assistance – Helping foreign entrepreneurs get the necessary approvals.
✅ Market Research & Business Strategy – Helping you choose the right location & business model.
If you’re ready to start your restaurant business in Thailand, visit BillionPreet for expert consultation and business setup support! 🚀
