What is the Fees for Food License in Thailand?

 

In addition to being a tourism hotspot, Thailand is also popular as a foodie’s paradise. Every year the kingdom witnesses a great footfall of tourists and business owners. Apart from these visitors, Thai citizens are also food fanatics and love to taste different cuisines of different ethnicities. These facts have inspired many business owners to start their food business in Thailand. If similar is your plan, along with the process, this article will also guide you on the food license fees in Thailand.

Basic Guidelines on Food License in Thailand

In Thailand, a food license, often referred to as a “food establishment license” or “food business license,” is a legal permit. It allows individuals or businesses to prepare, sell, or distribute food products to the public. This license is essential to ensure that food businesses meet certain hygiene and safety standards, protecting the health of consumers.

Types of Food Licenses

The specific type of food license you need can vary depending on the nature of your food business. Common categories include a restaurant license, street food vendor license, food production license, and more.

Regulatory Authority

The Food and Drug Administration (FDA) in Thailand is responsible for regulating food licenses and ensuring that food businesses comply with food safety regulations.

Application Process

To obtain a food license in Thailand, you typically need to submit an application to the local FDA office or the relevant authority in your area. The application process may require you to provide information about your business, food safety measures, and the location of your establishment.

After submitting your application, your food establishment will likely undergo inspections by health officials to ensure compliance with food safety standards. This may include checks on cleanliness, food storage, handling practices, and more.

Penalties for Non-Compliance

Operating a food business without the necessary license or violating food safety regulations can lead to penalties, fines, or even closure of the establishment.

Food Safety Standards

The Food Act B.E. 2522(1979) is the primary law governing all foods in Thailand. It gives the government and officials the power to regulate domestic food production, as well as the imports and exports of food goods for retail sale. It also specifies the requirements and penalties for food businesses in Thailand.

Food License Fees in Thailand

The government fees for food license depends primarily on the area of your business premises that you will use to cook and serve/sell food to customers. On the basis of the area of your business, the food license fee slab is as follows:

• Up to 10 square meters: 100 THB
  • Additional 5 THB per square meter for more than 10 square meters
• Between 200 and 300 square meters: 2,000 THB
  • Additional 5 THB per square meter for more than 300 square meters

However, the government fee is limited to 3,000 THB. This limit is likely a regulatory decision made by the Thai government to promote small and medium-sized businesses and to make it more affordable for them to obtain the necessary licenses to operate in the food industry.

So are you planning to start your restaurant in Thailand? If yes, then you must check whether you have the following documents.

Documents Necessary to Obtain Food License in Thailand

• The company’s affidavit (not older than six months)
• House registration of the building.
• Original consent letter or a copy of the lease agreement (affixed with a duty stamp)
• The copy of the ID card and house registration of the director of the company.
• The copy of the ID card and house registration of the owner of the business.
• Power of Attorney
• Signed and completed application form (SorAor1)
• Map of the location of the business (restaurant)
• Printed photos of the front and inside of the business (restaurant)
• Interior plan (layout) of the restaurant marking a sitting place, kitchen space, and other sections.
• Measurement of the whole restaurant in square meters including tables, kitchen, counter, etc.
• Documents to prove the ownership, such as the sale and purchase agreement, a title deed, or construction permit.

From the document requirement, you can understand that before getting your food license, you have to register your business in Thailand. Documents like the affidavit, power of attorney, and proof of business ownership mandate you to have a registered business in Thailand. 

Be it registering your company or obtaining your food license in Thailand, feel free to email us at officer@konradlegal.com. We will start with a free email consultation and, henceforth, we will assist you throughout the process with our elegant services till you achieve success.

How can foreigners go for Mergers & Acquisitions in Thailand?

 

Mergers and Acquisitions in Thailand for Foreigners can be a great way to expand existing business to the Thai market. Using this option, foreign investors gain the possibility to acquire shares of Thai companies and work collaboratively toward a common goal mutually decided. The process is very open for Thai investors but holds some challenges for foreign investors.

The reasons that make the process cumbersome for foreign investors are the restrictions of the Foreign Business Act. However, there are possibilities of busting these challenges and proceeding in the process. But before that, you should understand the restrictions on foreign investors for M&A in Thailand.

Restrictions on Mergers and Acquisitions in Thailand for Foreigners

Foreign investors expecting cross-border M&A agreements in Thailand may face significant difficulties due to Thailand’s law restrictions on foreign ownership. These restrictions may affect the M&A structure chosen as well as a foreign investor’s degree of influence over a target company.

The primary law governing foreign ownership of firms in Thailand is the Foreign Business Act of 1999. Companies registered overseas or domestically with 50% or more of the shares held by non-Thais are considered foreign under the Foreign Business Act of Thailand. The Foreign Business Act contains three categories that restrict the kind of businesses that foreign corporations may do. 

This means that without a foreign business license or any conditional exemption in accordance with the provisions of the act, ministerial regulations, investment promotion laws, industrial estate laws, or treaties between Thailand and certain countries, foreign investment in companies operating a restricted business is limited to less than 50% of the shares.

Furthermore, foreign ownership is not possible for various types of businesses and activities. This is because special Thai legislation reserves these business structures for Thai citizens. For example, the Land Transportation Act of 1979, after amendment states that only limited companies with at least 51% Thai-owned shares may operate in the land transportation business. In addition, the Land Code Act of 1954 forbids foreign nationals from owning land in Thailand unless specifically approved by legislation governing industrial estates or investment promotion.

Key Takeaway with Solutions

The major reason that makes the M&A structure formation challenging for foreign investors is the restrictions of the Thai Foreign Business Act. However, for this single challenge, there are various solutions as well. Generally, these solutions relate to the methods by which foreigners can register a Thai business in Thailand and proceed to register the M&A structure. Some of these methods are as follows:

• Registration of Limited Companies with 51% Thai Shareholding
• Obtain Board of Investment Thailand Promotions and Certification
• Receive Industrial Estate Authority of Thailand Privileges

Apart from these, there are certain other processes to achieve the eligibility to form an M&A structure in Thailand. For that, you need to contact a leading corporate law firm in Thailand and seek their legal due diligence services. Legal due diligence entails a careful examination of a target company’s corporate structure, operational procedures, regulatory compliance, licenses, labor, property, and other pertinent aspects. This will reveal whether there are any foreign ownership restrictions pertaining to the target company or the proposed investment.

Stages of Forming Mergers & Acquisitions in Thailand

Stage 1:

A Memorandum of Understanding (MoU) or Letter of Intent (LoI) is signed by the parties. At this stage, an MOU should specify the binding provisions and confidentiality terms.

Stage 2:

By conducting due diligence on the business, real estate, legality, and finances, among other things, the buyer examines various issues within the target organization.

Stage 3:

The parties begin the buy-sell negotiation after the due diligence procedure and resolve issues raised by the due diligence.

Stage 4:

The parties prepare the Sales and Buy Agreements and relevant documents to make them ready for signature and the business seal. The Thai Civil and Commercial Law confirms the signed agreements.

To make yourself eligible to form a Mergers and Acquisitions in Thailand, there are various parameters that you must abide by. It starts with an understanding of the Thai corporate structure and compliances properly. Additionally, you must have a proper knowledge of the Thai tax and regulatory landscape.

However, if you hire a reliable corporate law firm in Thailand, it will make the process easier for you. All you need to do for this is to email us at officer@konradlegal.com and go for an email consultation.

NGO Registration in Thailand for Foreigners

 

For NGO Registration in Thailand, foreigners will have to go for either Thai Registered Foundations or Foreign Private Organizations. Sounds confusing?

As a leading corporate law firm in Thailand, allow us to make your plan of registering an NGO (Non-Government Organization) in Thailand a success!

We all know that a private organization engaging in charitable or social welfare activities is an “NGO”. Such organizations never conduct operations to earn profit. Thailand has become a sought-after destination for NGOs due to its advantageous location at the heart of South East Asia. Additionally, it is one of the host countries of the United Nations. 

The registration of NGOs, however, is not specifically covered by Thai law. Instead, NGOs fall under one of two categories, i.e., foreign private organizations or Thai registered foundations. Let us take a quick glance at the difference between these two types of business structures.

Foreign Private Organizations Registered as NGOs in Thailand

Without creating a local entity, foreign NGOs are allowed to register their presence and apply for work authorization in Thailand. NGOs are categorized as Foreign Private Organizations in this case. However, it is typically advisable for foreign Organizations looking to operate in Thailand to create a foundation. This is due to administrative challenges associated with running a foreign NGO in Thailand without a local entity registration.

The Committee on Consideration of the Entry of Foreign Private Organizations must grant permission for foreign NGOs to function in Thailand. A foreign NGO will be given a limited license by the Committee to work in Thailand. For international workers and volunteers, obtaining work permits and visas to remain in Thailand are two different processes.

Yet, NGOs functioning as FPOs frequently face financial and legal challenges when it comes to day-to-day problems. Thus, it is often more appropriate to register a local Foundation under Thai law. It becomes mandatory when the NGO involves in any major work or financial activity in Thailand.

Thailand Registered Foundation as an NGO

To pursue their goals and carry out operations in Thailand, NGOs may create a local legal organization called a Foundation.

Thailand Foundations are non-profit organizations with authorization from the Thai Ministry of Interior. Such organizations can carry out charitable, religious, artistic, scientific, literary, educational, and other public interest endeavors.

The process needs a minimum of three board members to supervise either Thai or international volunteers. They must do so on a voluntary basis. Additionally, they must be able to show a minimum donation of 200,000 Baht to form a foundation in Thailand. To prove this, a supporting bank account statement is necessary.

Although not mandatory, yet, one of the board members should be a Thai native. It is because the NGO will undoubtedly benefit from having a member who speaks Thai well and is familiar with local practices. Officers of the Foundation must also get a police clearance from the national police force of their home country.

Regulations for NGO Registration in Thailand for Foreigners

For a developing nation, foreign NGOs offer a possible source of material and technological support. Yet, a complex bureaucratic structure necessitates foreign NGOs to apply for authorization. They must do so before opening a local office in Thailand. The Ministry of Labor and Social Welfare oversees the operation of foreign NGOs in Thailand, and two main regulations govern this process:

• The Ministry of Labor and Social Welfare’s B.E. 2541 (1998) regulations on the entry of foreign private organizations that operate in Thailand.
• Governing principles for consideration and guidelines on the entry of foreign private organizations to operate in Thailand and the building of regional offices in Thailand, according to the Committee on Consideration of the Entry of Foreign Private Organization Regulation B.E. 2543 (2000).

The Committee on Consideration of the Entry of Foreign Private Organizations authorizes foreign NGOs to operate in the nation. It grants permission to foreign NGOs on the basis of the following criteria:

• The country’s strategy for societal advancement, economic growth, and national security
• Preserving positive ties between Thailand and other nations
• The foreign NGO’s objectives and methods of operation while requesting authorization to operate
• Relevant government department’s opinions and recommendations
• The advantages of permitting the foreign NGOs to operate in Thailand

It is significant to remember that Thai law defines the following terms:

• An “institution, organization, society, foundation or group of foreign persons who are in the private sector or who are receiving support from a foreign government” is a foreign non-governmental organization (NGO).
• The definition of “operation” as it relates to the running of a foreign non-governmental organization (NGO) is “an application to establish an office or to operate an activity in order to help or support regardless of whether the form of support is financial support, organizing seminars or exhibitions, donations, support in terms of materials or equipment or durable goods, offering knowledge and technological or other forms of support.”

If a foreign NGO has been given authorization to operate in one of the aforementioned ways, the Committee will provide them a license that is only valid for two years. The foreign NGO must abide by the particular requirements of the license, which include submitting a semi-annual report to the Committee outlining the outcomes of the NGO’s activity.

Foreign NGOs must seek legal advice before starting operations in Thailand due to the complexity of the laws and regulations in that nation. For complete assistance in the process, email us at officer@konradlegal.com and our team will get back to you within 1 Thai working day.

How Can Chinese Business Owners Register Business in Thailand?

 

Thailand, with its strategic location, vibrant economy, and investor-friendly policies, has become an attractive destination for foreign investors, including those from China. Setting up a company in Thailand offers numerous advantages, such as access to a large consumer market, a skilled workforce, and various business incentives. This article serves as a comprehensive guide to Company Registration in Thailand for Chinese investors.

Understanding the Business Structure Options

Thailand allows foreign investors to choose from different business structures, including:

a) Limited Company (Private Limited or PLC):

This is the most common form of business structure, offering limited liability protection for shareholders and a minimum requirement of three promoters.

b) Public Limited Company (PLC):

This structure is suitable for larger enterprises planning to raise capital from the public through the stock exchange. It requires a minimum of 15 promoters.

c) Representative Office:

Ideal for companies looking to conduct market research, feasibility studies, or liaise with clients but not engage in revenue-generating activities.

d) Branch Office:

A branch of a foreign company that allows it to operate in Thailand under the same name and business activities as the parent company.

• Reserved Business Activities

Thailand has a list of business activities reserved for Thai nationals. Chinese investors must ensure that their desired business activities are not on this list or obtain necessary permits through the Foreign Business Act.

• Minimum Capital Requirements

For a limited company, the minimum registered capital requirement is 2 million Thai Baht (THB), out of which 25% must be paid up. There are no minimum capital requirements for representative offices or branch offices, but sufficient funds should be available to cover initial operating costs.

Company Registration Process

The company registration process involves several steps:

a) Reserve a Company Name:

The first step is to reserve a unique company name at the Department of Business Development.

b) Obtain a Thai Foreign Business License (if applicable):

If the business activity falls under the restricted list, you must obtain a Foreign Business License from the Ministry of Commerce.

c) Deposit Initial Capital:

Transfer the initial capital to a local Thai bank account.

d) Prepare Necessary Documents:

Prepare the company’s memorandum of association, articles of association, and other required documents.

e) Submit Application:

Submit the application for company registration to the Department of Business Development.

f) Tax Identification Number (TIN) and VAT Registration:

Once the company is registered, obtain a TIN and register for Value Added Tax (VAT) if applicable.

Engage with Professional Services for Company Registration in Thailand for Chinese Investors

Navigating the company registration process in Thailand can be complex. You must engage with local corporate lawyers or company registration firms. You must check whether these lawyers or firms have experience in assisting Company Registration in Thailand for Chinese investors. This will ensure a smooth and efficient registration process.

After company registration, it is crucial to comply with all relevant Thai laws and regulations. This includes obtaining work permits and visas for foreign employees, complying with tax requirements, and adhering to labor laws. For assistance of all types, feel free to let us know at officer@konradlegal.com. 

Registering a company in Thailand presents an exciting opportunity for Chinese investors. Undoubtedly, it helps them to tap into Southeast Asia’s dynamic markets and business landscape. However, understanding the available business structures, meeting minimum capital requirements, and adhering to Thai regulations is crucial. Through this, Chinese investors can establish a successful business venture in Thailand.

Therefore, seeking assistance from professional services ensures a seamless and compliant registration process, setting the stage for a prosperous business journey in the Land of Smiles. Contact us and our team will thoroughly guide you through the process of Company Registration in Thailand.

How can Singaporeans Register Business in Thailand?

 

There are various factors that make Thailand and Singapore comfortable for investors of either region to do business in. The bilateral trade treaties make the process of Company Registration in Thailand easy for Singaporean business owners. Furthermore, both these companies complement each other in various sectors, hence, boosting these bilateral ties.

Are you an Investor from Singapore? Then now is the time to register your business in Thailand. Singapore is the leading financial hub in Southeast Asia and a well-liked location for foreign investors to set up regional offices. The second-largest economy in ASEAN and a major producer of exports is Thailand.

Relationship between Thailand and Singapore

Thailand and Singapore share healthy and mutually beneficial economic ties. With an investment of US$11.85 billion, Singapore was the second largest foreign investor in Thailand in 2022 just after China. Singapore holds a total stock of US$24.9 billion in direct investments in Thailand. It is mostly in the real estate, manufacturing, wholesale and retail trade, banking and insurance services, and manufacturing sectors.

Bilateral trade increased by 31.9% over the same period last year. Its value is S$21.6 billion (US$15.7 billion) through the first half of 2023. Gems and jewelry, unwrought gold, refined oil, circuit boards, computer equipment and components, and other industrial goods are among the main Thai exports to Singapore. Computer hardware and components, chemicals, refined oil, circuit boards, jewelry, diamonds, and bullion and gold are the main exports from Singapore to Thailand.

The nature of agreements between the nations clearly reflects that the Thai government is readily embracing Singapore’s top strategies. Most importantly, this is to encourage investment and effective regulation. As the two nations’ relations deepen, Thailand will be better able to transform its economy towards innovation and services. Furthermore, business owners and investors from Singapore with headquarters here will have access to a significant regional economy.

So isn’t this appealing enough? Therefore, both nations are well set to collaborate with each other in mutual development. So, why should you fall back on availing of the benefits? 

Here is the process to do business by Company Registration in Thailand as a Singaporean! 

Company Registration in Thailand for Singaporeans involves a specific process with the following general steps:

• Foreign Business License (FBL) Application: As a Singaporean, you will need to obtain a Foreign Business License in Thailand. This is mandatory to engage in certain business activities. Furthermore, the FBL is mandatory for most types of businesses unless they fall under specific exemptions.
• Business Activities Check: Make sure the business you want to set up is not on Thailand’s restricted or prohibited list. Note that, some businesses are limited to Thai nationals or require special permits.
• Company Name Reservation: Choose a unique company name and reserve it with the Department of Business Development.
• Memorandum of Association (MOA) and Articles of Association (AOA): Prepare the MOA and AOA in Thailand. This must outline the company’s structure, objectives, and rules.
• Shareholders and Directors: Identify the shareholders and appoint directors. As a Singaporean citizen, you can be a shareholder and director of the company.
• Registered Office Address: You’ll need to have a registered office address in Thailand for official communications.
• Submission of Documents: Submit all required documents, including the FBL application, MOA, and AOA, to the Department of Business Development.
• Registration and Tax ID: After approval of your application and documents, you’ll receive a company registration certificate and a tax identification number.
• VAT Registration: Depending on your business activities, you may also need to register for Value Added Tax (VAT) with the Revenue Department.

You should note that there are various bilateral trade treaties between Thailand and Singapore. Availing them will help you ease the process of company registration in Thailand. For any and all types of professional legal help for company registration in Thailand, email us at officer@konradlegal.com. Our team will get back to you within 1 business day.

Registration of Holding Company in Thailand

 

Are you planning for a Holding Company Registration in Thailand? Irrespective of the fact as whether you are a Thai or a foreign business owner, you may proceed with that. But before everything, you must know what is a Thai Holding Company and what are its features and privileges. The purpose of this guide is to comprehensively guide on the same. For further assistance, we are always reachable to help you with the best corporate law and accounting services in Thailand.

A Thai holding company primarily exists to hold and control the shares or assets of other companies. It is applicable to both domestic and foreign companies. A holding company cannot purposefully engage in direct business operations. However, it can manage its investments in other companies, known as subsidiaries. Holding companies are common in Thailand, due to their various benefits and advantages.

Key Features & Functions of a Thai Holding Company 

Ownership and Control

The purpose of a holding company in Thailand is primarily to have ownership and control over other companies. It achieves this by acquiring a significant portion of shares or assets of these subsidiary companies. Acquisition of such shares or assets is the "holding company's investments."

Risk Management

By holding diversified investments in multiple companies, a Thai holding company can evenly distribute its risk. If one subsidiary faces financial difficulties or legal issues, the other companies may remain active. Furthermore, these companies can provide aid to the subsidiary at risk. This provides a buffer against potential losses.

Asset Protection

Holding companies can offer asset protection by separating the ownership of assets from the operational risks. This structure can help shield the holding company's assets from potential liabilities incurred by its subsidiaries.

Tax Planning

In some cases, holding companies can facilitate tax planning strategies. Depending on Thailand's tax laws and the countries in which its subsidiaries operate, a holding company may be able to optimize tax efficiency within legal boundaries.

Consolidation of Financial Statements

A holding company typically prepares consolidated financial statements that include the financial results of all its subsidiaries. This provides a comprehensive view of the overall financial health of the entire group of companies.

Financing and Investment

Holding companies can raise capital through debt or equity financing and then use these funds to invest in new businesses or expand existing ones.

Dividend Income

The holding company can receive dividend income from its subsidiaries, providing a steady stream of revenue.

Governance and Decision-making

The holding company's board of directors exercises control over the group and its subsidiaries. This centralized governance can lead to more effective decision-making and resource allocation across the group.

It's important to note that while holding companies can offer various advantages, there are also legal and regulatory considerations to keep in mind. The establishment and operation of a holding company in Thailand must comply with the country's corporate laws and relevant regulations.

Foreigners may own a holding company in Thailand, provided that there is a genuine Thai partner in the business venture. This local partner will be a shareholder that must invest his own capital. It is prohibited under Thailand's company laws to have a local Thai partner who hasn't invested his own capital and holds company shares owned by somebody else. It is thus important to partner with genuine shareholders to operate your business under this structure. 

Benefits of Holding Company Registration in Thailand

Foreign investors choose to open a Thai Holding Company due to its ability to evolve and expand into new companies. It can be through local and/or foreign subsidiaries irrespective of their connections with their present business activities.

Additionally, setting up a Thai Holding Company helps foreigners avoid difficulties when applying for a listing on the Exchange. Holding companies can acquire subsidiaries that have various firm structures and subsidiaries on the list of the Exchange. Through this, they have better chances of having their stock listings without encountering any problems. 

Eligibility to Start a Holding Company in Thailand

There is no need to find a wealthy Thai investor to set up a holding company in Thailand. All you need is a local person you can trust, who can fork over 51% of the registered capital of 100,000 baht. 

You can set up a second company to hold a majority of the company shares and then offer shares from the operating company. This second company, being an investor, has a substantially lower capital than the operating company as its purpose of existence is to hold the operating company's majority of shares. 

What you need then is a Thai investor who can finance the holding company's capital that is much lower than the 51% of the usual 1 million baht required from regular investors. Applying for a holding company can take five to seven days to complete. 

As a result of this arrangement, both the operating and holding companies will be recognized as Thai companies that will be allowed to be involved in any business activity. This is because 51% of the operating company will be held by the holding company, whilst 49% will be held by foreign owners. This 51% is to be held by the true local investor, whilst 49% is to be held by the foreign owner.

Steps of Holding Company Registration in Thailand 

A holding company falls under the Thai Limited Liability Company (LLC) Category. Although LLCs allow companies to be 100% foreign-owned, holding companies require the majority of the company's shares (at least 51%) to be owned by a Thai national. 

To open a holding company, follow the steps of setting up a Thai Limited Company: 

• Reserve a Company Name 
• File the Memorandum of Association
• Organize a Statutory Meeting
• Holding Company Registration
• Tax Registration (Corporate Income Tax, Value Added Tax, and Withholding Tax)
• Open a Corporate Bank Account 

Get Work Permits and Visas 

All foreign employees and directors must get a work permit before being allowed to do business in the country. The company can be eligible to sponsor one non-immigrant foreign member if they meet the Ministry of Labour and Immigration Bureau requirements.

If you're considering setting up a Thai holding company or incorporating any type of business entity in Thailand, it's advisable to consult with Thai legal and accounting experts who can provide tailored advice based on your specific business goals and circumstances. Therefore, for the best professional results, email us at officer@konradlegal.com.