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Understand Thai hemp laws as well as restaurant laws. This cover the corporate rules, licensing, compliance, and taxes for these two types of businesses. Below we explain in a mini-guide how to run a restaurant and a cannabis related business which involves Thai hemp laws. I’ve focused on the most important regulatory steps, ownership matters, health & safety, and the taxes you’ll pay as a company and as an individual. Note that the Thai officials and regulators have the final word. Mote that the Thai hemp laws are changing.
Sole proprietorship (บุคคลธรรมดา / sole trader): This is a simple business structure with minimal formalities. Note however that the owner has unlimited personal liability. This format is often used for very small food stalls.
Private limited company (บริษัทจำกัด / Ltd.): In Thailand this would be the standard for restaurants and cannabis ventures. Its has limited liability as well as more credibility with banks as well as with the landlords. Note that many licenses require this type of business registration. There is a minimum one director. Note that when it comes to foreigners they usually need Thai-majority ownership or special permissions for restricted activities.
Public limited company (PLC): This is not typical for small hospitality or cannabis startups.
Foreign ownership issues
The Foreign Business Act (FBA) in Thailand restricts certain activities to Thai majority companies. These tend to be many retail, food-service, as well as health-related activities. These may be treated as “reserved” or require a Thai-majority board/ownership or a Foreign Business License.
Structuring options (Thai partner, BOI certificate, Treaty of Amity) are common. For cannabis, evolving public-health controls and licence regimes mean foreign investors must be cautious and usually require local partners or specific license approvals.
This cover the corporate rules, licensing, compliance, and taxes for these two types of businesses. Below we explain in a mini-guide how to run a restaurant and a cannabis related business. I’ve focused on the most important regulatory steps, ownership matters, health & safety, and the taxes you’ll pay as a company and as an individual. Note that the Thai officials and regulators have the final word.
Business registration at the Department of Business Development (DBD). This as well as the articles of association which has been explained before. There also needs to be the registered capital. This is often set to comply with tax/small company rules and to show sufficient capital. The appointment of directors of the company. Likewise there is also the tax ID and VAT registration. The VAT registration is for business where their annual turnover exceeds the VAT threshold. Likewise there is a need for certified translations and notarised documents which are typically required.
Business registration / company incorporation (DBD).
Food Shop License: (ใบอนุญาตร้านอาหาร) These are issued by the local municipal or district office. Normally every restaurant needs this. The application for the restaurant typically requires floor plans, equipment list, water supply/sanitation info and landlord consent.Failure to hold a Food Shop License can lead to closure as well as fines.
Food and hygiene compliance: There needs to be compliance with the Food Act B.E. 2522 (1979) and related ministerial rules. This relates to the proper storage, safe water, temperature control as well as ingredient traceability. The labeling for packaged foods and allergens where applicable also needs to be identified. Health inspections can be periodic or complaint-driven.
Building and Zoning: You will also need to ensure premises are zoned for the restaurant and
hospitality. Note that certain shopping malls and certain buildings may impose additional rules. Likewise landlords often require business registration and guarantees. See the zoning laws in Thailand.
Fire safety and Building code: There needs to be a certificate from local fire department or engineer may be required for occupancy. This especially where there are loads of flammable
liquids.
Alcohol retail license : Note that if you are going to sell liquor. Then you must obtain an excise or excise-department retail liquor license (Type 1, etc.). This will need to be displayed on-site where the liquor is about to be sold. Note that there are local rules on hours, advertising and location (e.g., near temples or schools may have restrictions).
Signage and outdoor seating permits : There needs to be municipal approvals which apply for outdoor chairs, signboards and terraces. We wrote an entire page on signage tax in Thailand on this website.
Sanitary rules for staff
Regular food-handler training and sometimes medical checks (local requirements vary). Staff hygiene and documented cleaning schedules are commonly inspected. Staff normally get a certificate to show that they received training.
Employment and labor
Standard Thai labor law applies here. The working hours, overtime, social security contributions, and statutory benefits. Foreign workers require work permits and non-immigrant visas. Likewise hiring foreigners for restaurant kitchens/front-of-house carries extra bureaucratic steps.
Local taxes/fees
Business local licenses often require annual fees. Likewise with waste management and municipal business tax may apply.
Important high-level point: Thailand’s approach to cannabis has changed dramatically in recent years . This started with decriminalisation in 2022/2023 to renewed tightening and reclassification of cannabis buds and restrictions on retail sales in 2024–2025. It was short lived.
That means any cannabis business must track the Royal Gazette, Ministry of Public Health (MOPH) orders, and FDA licensing. Recent government action has reinstated stricter controls on bud sales and requires prescriptions or controlled supply chains in many contexts. You can see the articles which we wrote on hemp laws.
Typical cannabis business activities and their regulatory treatment
Cultivation / farm production:
This requires site-specific cultivation licenses from the Thai FDA (or other designated agency). Licenses often include security as well as seed-source and traceability. There also needs to be good agricultural practice requirements.Note that these fees may vary.
Processing / extraction:
Now making cannabis extracts, tinctures or CBD products usually requires a manufacturing or processing licence. They are very strict on the limits on THC content and production facilities.
Retail / dispensaries / cafe sales:
The tightening of rules has started. There was a boom after decriminalisation. Since then the sales of buds without a prescription have been banned or restricted. Likewise all edible products and low-THC products face specific composition rules. You will note that there are the THC limits in food. Likewise there are labeling and packaging requirements. We recall the M150 Cannabis which used to sell at 711 store. Export / medical research: highly regulated; exports must be specifically licensed and are subject to CITES-type and drug control oversight where applicable. See more on hemp laws.
Key practical compliance issues
THC thresholds and testing: You will note that many product types must not exceed specified THC percentages. It needs to be tested and third-party lab certificates are essential.
Prescription supervision: With the recent rules requiring prescriptions. This for certain uses and mandate provenance from certified pharmaceutical farms for dispensary sales. Violations can carry criminal penalties (fines and jail).
Supply-chain traceability: regulators expect seeds-to-sale tracking and documented monthly reporting for licensed sellers.
Narcotics law interplay: even if certain acts are permitted, the Narcotics Act and related regulations can still apply to unlicensed possession/sale or cross-border activity.
This can be obtained at local district or municipality (floor plan, hygiene plan, watersupply). If selling alcohol, get the appropriate liquor retail license from the Excise Department.Likewise you will need to ensure fire and building safety certifications.
You will need too hire staff and register them for Social Security, set up payroll withholding. Finally you will need to register your signage permit outdoor seating permits if required. Lastly open, keep records, pay taxes timely and undergo inspections.
For sale of cannabis products or setting up cafes, confirm whether local rules permit retail. Obtain any retail-specific cannabis license and meet supply-chain sourcing rules.
Set up strict inventory control, lab testing partnerships, and monthly reporting mechanisms.
Comply with advertising, packaging, and product composition rules — and get legal advice before launching any cannabis menu item.
Below are the key taxes you’ll encounter. Tax rates and thresholds are periodically adjusted,so use the cited authorities and current Revenue Department guidance when filing. The figures below reflect the most current public guidance as of mid-2025.
Standard rate: Historically in Thailand 20% for large companies, but recent reforms and small company preferential rates mean effective rates vary. Many tax summaries used by practitioners show 15% for certain tax bases and special SME tiers; standard frameworks continue to be updated, so check treatment for SMEs and incentives. For specific filing, confirm with the Revenue Department or an accountant. (Practical example): A private limited company with net profit of THB 1,000,000 may be taxed under the SME schedule with lower effective rates on the early tranches —professional accounting will compute taxable income after allowable expenses and deductions.
Standard VAT rate: 10% is the statutory standard, but the rate has been temporarily reduced to 7% (reduced-rate measures have been extended at times); check the current status because the government has adjusted the VAT rate in recent years. VAT is charged on sales of goods and many services; exports are zero-rated. Restaurants must register and charge VAT if turnover exceeds the VAT threshold (or if they elect to register).)
Payments such as rent, service fees, interest and royalties may be subject to withholding at specified rates (often 1%–5% for business-related payments, 15% on dividends to non-residents etc.). Foreign service providers often face final WHT at source unless reduced by treaty.)
Restaurants or bars selling alcohol need to comply with excise duties and retail licensing fees; imported vs domestic products may carry different excise and customs implications.)
Thailand applies a progressive PIT scale. Current general brackets are 0% up to THB 150,000,then 5%, 10%, 15%, 20%, 25%, 30%, and 35% for higher bands (top rate 35% over certain thresholds). Employees pay PIT via employer withholding and file annual returns. Directors/shareholders who receive dividends must consider separate tax treatment of dividends (gross-up and dividend tax-credit rules may apply). See personal income tax.
Employers and employees must contribute to the Social Security Fund (SSF) and withhold income tax. Employer contributions add to labour cost. Exact rates and caps vary with legislative changes.
Tax treatment of cannabis sales is similar to other goods/services (CIT, VAT, WHT), but licensing fees, special excise-like levies, or medical product tax treatments may apply depending on whether products count as pharmaceuticals, foods, or controlled herbs.
Recent reclassification and prescription requirements can also impact VAT and deduction positions (e.g., pharmaceutical exemptions or special treatment). Because cannabis rules are evolving, tax authorities may issue special guidance for reporting and allowed deductions for cannabis firms.
