Common License in Thailand

Restaurant or Bar License

Restaurants and bars serving food need a food license from the nearest district office.

Requirements for a food license:

• Construction permit confirming that the building can be used as a restaurant;
• Thai employees are required to complete a food safety quiz at the District Office;
• Company registration documents;
• Documents from the legal owner of the property;
• Copy of the signing director’s passport or Thai ID card;
• Commercial name of the restaurant, which may be different from the company’s registered name;
• Photos of the inside and outside of the restaurant;
• Interior layout plan;
• Total area in square meters, including the kitchen;
• Government fee (depending on the size of the premises).

To be allowed to serve alcohol, the company has to obtain a liquor license from the local Excise Office.

Requirements for a liquor license:

• Copy of the company affidavit;
• Copy of the lease agreement for the business premises and a consent letter from the landlord;
• Copy of the house registration (Tabien Baan) of the business premises;
• Map showing the location of the company.

There are restrictions on the hours during which alcohol can be sold, generally from 11am to midnight.

Under the Alcohol Beverage Control Act, B.E. 2551 (2008), it is prohibited to sell liquor in certain locations, including areas near schools, religious places, and gas stations.

Each of these licenses is valid for 1 year and must be annually renewed before its expiration.

Tourism License

To operate a tourism business in Thailand, a License under Tourism Authority of Thailand (TAT) must be obtained in accordance with the Tourism Business and Guide Act.

As tourism business is a restricted activity for foreign investment, the company has to be registered as a Thai Company Limited with at least 51% Thai shareholders. At least half of the company’s directors must also be Thai.

A tourism business includes companies organizing or operating tours and providing tour guide services. It does not include passenger transportation services or hotel booking services.

Requirements

• A Thai Company Limited with at leat 51% Thai shareholders;
• At least half of the company’s directors must be Thai. The signing director must be Thai, at least 20 years old, have no criminal record, and be credit-worthy;
• A guaranty deposit has to be paid to the Tourism Business and Guide Division of the Department of Tourism, depending on the type of tourism business:
  • THB 10,000 for tourism activities operated in one location
  • THB 50,000 for domestic tourism
  • THB 100,000 for inbound tourism
  • THB 200,000 for outbound tourism;
• Insurance coverage is required. The required coverage depends on the number of clients per day, and the annual insurance premium is approximately THB 15 per person. Each client is covered for a maximum period of 15 days;
• A criminal record check for the Thai managing director is required. Alternatively, two licensed tourism business operators can certify the credibility of the applicant, together with copies of their tourism business licenses;
• Lease agreement for the business premises with a minimum term of two years, together with a letter of consent from the landlord;
• A map showing the location of the office and two photographs of the front of the office clearly showing the address and business name;
• Certificate of registration, including the company’s objectives;
• List of shareholders certified by The Ministry of Commerce;
• Memorandum of Association certified by The Ministry of Commerce;
• Company regulations or minutes of the company’s establishment meeting certified by The Ministry of Commerce;
• Copy of the director’s personal ID card and registered address, certified by the director;
• Company seal;
• Business plan;
• The business sign and tourism business license must be clearly displayed at the premises.

The TAT license is valid for two years and renewal has to be done 120 days before expiration date.

Hotel License

Any business operating accommodation services in Thailand has to apply for hotel license in accordance with the Hotel Act B.E. 2547 (2004).

Small accommodation establishments may qualify as non-hotel accommodation and therefore be exempt from the hotel license requirement if they meet the applicable conditions:

• having no more than 8 rooms and a maximum capacity of 30 guests;
• Providing temporary accommodation for payment;
• the required notification procedure has to be completed with the competent authority (notification, inspection, reception of a written acknowledgment).

Short-term accommodation businesses, including certain Airbnb, guesthouse and villa rental activities, can therefore fall within the scope of the Hotel Act even if they are not operated or marketed as traditional hotels. In practice, most short-term rentals of less than 30 days are subject to the hotel regulations.

Operating a hotel business without the required license can result in imprisonment of up to one year and a fine up to THB 20,000. The authorities may also fine the business THB 10,000 per day, if the business continues to operate illegally.

Large hotel businesses can be promoted by the BOI if they meet the applicable investment and room requirements. Under the current BOI criteria, hotels with 100 rooms or more must have a minimum investment of THB 2 million per room, excluding land costs and working capital. Hotels with fewer than 100 rooms require a minimum investment of THB 500 million, excluding land costs and working capital.

Requirements

• The hotel company must comply with the applicable Thai ownership requirements. In the absence of BOI promotion or another applicable exemption, Thai shareholders must hold at least 51% of the company’s shares;
• The authorized director signing the application must meet the requirements applicable under the Hotel Act;
• The Construction Permit have to allow the building to be used as a hotel business;
• The application must be submitted to the Provincial Administration;
• The hotel premises are inspected by the Health, Environmental and Construction authorities.
• Safety standards must be fulfilled such as the presence of fire extinguishers, emergency stairways for buildings with more than four floors, emergency lighting and others.
• An Environmental Impact Assessment (EIA) may be required depending on the size and characteristics of the hotel project. For example, hotels or resorts with 80 rooms or more, or with a total floor area of 4,000 square meters or more, fall within the relevant EIA criteria.

The application process can take up to six months before approval, depending on the location and the complexity of the project. The hotel license is valid for five years and renewal must be done before its expiration date.