My friend is a chef. Recently, he told me he's saved up a fair amount of money, and might want to move here soon. He then asked me what he would have to do, step by step, to open a small restaurant here; maybe with 3-4 staff. As he wants to do the cooking, himself, I said I was unable to answer him, but that I'd look into it for him. So, can anyone help shed some light on this subject? Thanks a lot.

A good start is looking at the bars and restaurants for sale in the Thaivisa classified. The work visa can be a little tricky I am not 100% sure but I think the max he can own is 49%.

There are soooooo many threads on this.......he or you really need to research them.

There are so many things involved and pitfalls and hoops to jump through with such a blanket opening statement its hard to even begin !

A true minefield and beware as they explode frequently and without warning especially for ferangs.Just look at how many are for sale! and ask yourself why ?

It should not be a problem to open a restaurant here - all he needs to do is start a Thai company meaning he needs Thai partners - and he of course needs to apply for a work permit.

There are plenty of lawfirms around who specialise in setting up companies / work permit - just find one that's trustworthy and do a little bit of research in this forum.

That is the easy part!

Then it gets more complicated after all your friend does not want to loose all his savings soon after he starts his business. City? Location ? Rent, lease, buy freehold?

Where does he want to open his restaurant ? Note: the restaurants who make "real" money here are mostly frequented by locals and of course visitors alike. Unless of course you have a prime location in a very busy tourist area - and not even that garanties success - as the rent will be sky-high and plenty of competition around.

I think your friend should come here for a while first - and get a feel of how things work here. The restaurant business is very competitive here - not easy to make it work.

Been there myself.

A number of years ago i formed a limited company for my guesthouse of which i could only legally own 49% of the business.

I had a work permit that had no end of limitations and restrictions.

Believe me, trying to operate a business whilst wearing labour office handcuffs is not so easy.

I could not do the cooking myself but could supervise my cook in how to prepare and cook a meal.

To sum it up you cannot do work that a Thai person can do as it's seen as doing a Thai out of a job.

The Authorities regularly target foreign backed owned businesses so be prepared for the people in light brown uniforms making visit's to the premises, more so in towns and city's that are easier to police. When you do everything legally your on the local authority computer which makes you an easy target.

There's always the danger that a member of your own staff will shop you for doing what you should not be doing if you upset them.

If your business is doing well it's possible that rival Thai owned or (foreign owned) business owners will do their dam_n-nest to find a reason to report you to the local authorities.

Lots of people in Thailand hide behind a Thai female owner, if you try to go it alone as i did then it can be a minefield.

Even though i had few problem's over a five year period if your mate doesn't have a Thai to front the place then tell him not to bother.

Very few restaurants make good money for the time and effort put in and is the reason you see so many for sale.

Look at Cambodia as an alternative - especially a tourist location like Siem Reap