No matter what type of business you are attempting to run, Thai company registration laws apply to you and vary depending on your type of business. For example, you may think that a foreign investor can easily and legally open a restaurant in Thailand. If so, you would be wrong because bar and restaurant ownership in Thailand is subject to the rules and regulations contained within the Foreign Business Act List 3. This states that foreign investors require a Foreign Business License if they wish to open their premises. US investors are exempt thanks to the 1966 Treaty of Amity. If you are from any other nation and wish to open a restaurant, standard Thai company registration rules apply.
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How The Foreign Free Trade Agreement May Override This
As is the case with legislation in every other nation in the world, Thai company registration laws are not set in stone. For example, Thailand has been negotiating Free Trade Agreements with various nations such as Australia and Japan. Citizens of both nations may be able to gain certain advantages when looking to open a business in Thailand. For example, it may be possible to have up to 60% Australian ownership of a restaurant in Thailand.
This seems fantastic on the surface but in reality, there are a variety of stipulations. For starters, the restaurant must offer full restaurant services without entertainment with a minimum area of 450 square metres. In addition, the owner of the restaurant needs to have fully paid up registered capital of 50 million baht. In essence, you may need to find a Thai citizen willing to invest 20 million baht in your restaurant in order to get it off the ground.
Other Options
Before you decide that Thai company registration is too difficult and you give up your dream of owning a restaurant in Thailand, there are other options. First of all, you can apply for the aforementioned Foreign Business License, process that may take 12 months or as little as 6 months. Unless you use a top legal team in Thailand however, your chances of obtaining this license are slim. Option two is to find a Thai partner who owns at least 51% of the company’s shares. Finding someone willing to invest that amount of money is up to you.
Other Legal Issues
You will need food, company and alcohol licenses (if you are selling booze), a work permit and property. Your best option is to take a lease of at least 3 years in length and have an option for renewal. Experts suggest that you don’t attempt Thai company registration in order to open a restaurant unless you are a professional in the field. This is common sense and one would imagine that this would be the case regardless of where you open for business. While the entire process may seem to be a long and arduous one, in actual fact, it is made simple by expert legal teams in Thailand who are just waiting for your call.
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