This is our Thailand and Southeast Asia guide for foreigners who want to open a restaurant in Thailand. Yes, a foreigner can open a restaurant in Thailand, but “sale of food and beverages” is restricted under the Foreign Business Act. A majority foreign-owned company needs a Foreign Business Licence and at least three million baht of capital. You also need a work permit, a food premises licence or notification, and a liquor licence for alcohol.
Quick answer
- Restaurants are List Three (19), “sale of food and beverages,” under the Foreign Business Act B.E. 2542.
- A company where foreigners hold half or more of the capital counts as foreign and needs a Foreign Business Licence; the Act sets minimum capital of at least three million baht for listed businesses.
- Using Thai nominee shareholders to get around the Act is itself an offence under Section 36.
- To work in your own restaurant you need a work permit; the Ministry of Labour links permits to the employer’s capital.
- Get a Thai lawyer and accountant before you sign a lease. This article is a guide, not legal advice.
Michael Clarke is a trained chef and runs Markedine, a restaurant marketing company in Bangkok. This article does not contain affiliate links.
Can a foreigner own a restaurant in Thailand?
Yes, with conditions. Thailand’s Foreign Business Act B.E. 2542 (1999) lists “sale of food and beverages” as item (19) in List Three, the businesses in which Thai nationals are “not yet ready to compete” with foreigners. The Board of Investment’s One Start One Stop restaurant FAQ confirms it: if a foreigner holds the majority of shares in a restaurant business, the investor must obtain a Foreign Business Licence.
Under the Act, a company registered in Thailand counts as foreign if foreigners hold at least half of its capital shares. That is why you often hear about 49% foreign and 51% Thai structures. Those can be legal, but only when the Thai shareholders are real investors.
I am a foreigner who has worked in hospitality in Bangkok for years, including running the rooftop bar and restaurant at Avani Riverside and co-founding Kingsmen Hospitality Services. I am not a lawyer. Use this as a map, then have a Thai lawyer check your exact structure.
What are the ownership options for a foreign restaurant owner?
| Option | What it means | Watch out for |
|---|---|---|
| Thai majority company | Foreigners hold less than half the capital; Thai shareholders hold the rest | The Thai shareholders must be genuine. Section 36 of the Act makes acting as a foreigner’s nominee, and using one, an offence. |
| Foreign majority company with a Foreign Business Licence | Foreigners hold half or more; you apply for a licence for a List Three business | The Act sets minimum capital for listed businesses at not less than three million baht, and the licence is granted at the authorities’ discretion. |
| Other routes (treaty or promotion) | Some investors use treaty rights or investment promotion | Eligibility is specific. Ask a lawyer whether any applies to you. |
The Foreign Business Act also sets a general minimum capital of not less than two million baht for foreign businesses, and not less than three million baht where the business needs permission under the Lists. Check the current ministerial regulations with your lawyer, because the Act lets them set the detail.
Do I need a work permit to work in my own restaurant?
Yes. Owning shares does not give you the right to work. To manage your restaurant day to day you need a work permit and the right visa.
The Ministry of Labour publishes its initial criteria for work permits (in Thai). One of them ties permits to the employer: a Thai juristic person with paid-up registered capital of two million baht, or a foreign juristic person that has brought in three million baht of investment from abroad, can be considered for one foreign worker, up to a maximum of ten. Your lawyer or accountant will tell you what else applies to your case, including visa conditions.
What licences does a restaurant need in Thailand?
- Company registration with the Department of Business Development, if you trade through a company.
- Foreign Business Licence, only if the company is majority foreign-owned.
- Food premises licence or notification. Under Section 38 of the Public Health Act B.E. 2535, a food selling place in a building or area over 200 square metres needs a licence from the local official; smaller places must notify the local official instead.
- Liquor licence, if you serve alcohol. The government’s official service guide lists new applications to sell liquor at the area Excise office.
- Tax registration, including VAT registration when your turnover requires it. Your accountant handles this.
- Work permits and visas for any foreign staff, including you.
Depending on the site, there can be others: signage, building use, and music licensing. Ask your lawyer for a written list for your address.
In what order should you do things?
- Talk to a lawyer and accountant first. Agree the ownership structure and capital before anything is signed.
- Find the site, then check it. Confirm the building can legally be used as a restaurant and that the kitchen, extraction and grease management work before you sign the lease.
- Register the company and open the bank account.
- Apply for licences that depend on the address: food premises, liquor, signage.
- Apply for work permits and visas as soon as the company can support them.
- Build, hire and train. Run a simulated service before the soft opening.
- Set up your Google Business Profile, Wongnai and delivery apps before the doors open.
The opening sequence I use is: concept, chef, menu, construction, licensing, staff, suppliers, a P&L, and a simulated service before guests arrive. I use the line that openings “fail from lack of sequence.” In Thailand, getting the legal order wrong is the most expensive version of that.
What do most guides about opening in Thailand leave out?
Getting found. Most guides stop at the paperwork. But the day you open, Thai and foreign diners will look you up on Google Maps, Wongnai and Instagram, and order through GrabFood and LINE MAN. A restaurant with every licence and no presence on those platforms is invisible.
- Create and verify your Google Business Profile with your opening date, correct category and pin. See the full setup guide.
- Claim or create your Wongnai listing. See Google, Wongnai or TripAdvisor: where to focus first.
- Understand delivery-app fees before you price the menu. See GrabFood vs LINE MAN.
- Plan the 90 days before launch. See the opening checklist.
One example from our published work: a seafood and Thai restaurant in Bangkok went through a full three-month changeover from one brand to another. Nothing existed yet, no profile, no menu, no audience, and my agency handled the Google profile, menu, photography, ads and PR through soft and grand opening. Licences are the floor. Being found is what fills the room.
What are the most common mistakes foreigners make?
- Signing a lease before the ownership structure and licences are clear.
- Using nominee shareholders to avoid the Foreign Business Act.
- Working in the restaurant before the work permit is issued.
- Assuming a previous tenant’s licences transfer to you.
- Leaving marketing until opening week.
Frequently asked questions
Can a foreigner own 100% of a restaurant in Thailand?
Only with a Foreign Business Licence or another legal route. Restaurants are a List Three business, so a majority foreign-owned company needs a licence, which the authorities grant at their discretion, with minimum capital of at least three million baht under the Act.
Is a 49% foreign, 51% Thai company legal?
The structure itself can be legal if the Thai shareholders are genuine investors. Using Thai nominees to hold shares for a foreigner is an offence under Section 36 of the Foreign Business Act.
Do I need a work permit to run my own restaurant?
Yes. Owning shares does not give you the right to work. You need a work permit and a suitable visa before you work in the business.
Do small restaurants need a food licence in Thailand?
Under the Public Health Act, food selling places over 200 square metres need a licence from the local official, while smaller places must notify the local official instead.
Do I need a separate licence to sell alcohol?
Yes. Selling liquor needs its own permission, applied for at the area Excise office according to the government’s service guide.
Should I use a lawyer?
Yes. Use a Thai lawyer and accountant before you sign a lease or register a company. The rules have conditions and the detail is set by ministerial regulation.
Sources
- Foreign Business Act B.E. 2542 (English translation, BOI)
- BOI One Start One Stop: Restaurant business FAQ
- Ministry of Labour: work permit criteria (Thai)
- Public Health Act B.E. 2535 (English translation, Department of Health)
- Government service guide: applying to sell liquor (Thai)
