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The importance of licensing following the Lat Phrao Fire H&P Herrera and Partners corporate law firm for foreign investment in Thailand

The fire that occurred at an entertainment venue in the Lat Phrao area on 13th of July 2026, resulting in numerous fatalities and injuries, has deeply shocked Thai society and international media. The incident has also raised significant concerns regarding safety standards and the regulatory oversight of entertainment venues and restaurants serving alcoholic beverages, particularly whether the actual nature of a business is consistent with the type of license it has obtained.

Although the cause of the fire remains under investigation by the relevant authorities, the incident highlights that obtaining the appropriate license is not merely an administrative formality. Rather, it is a critical legal requirement directly linked to safety standards, building control regulations, and the legal responsibilities of business operators. Our attorneys in Thailand and Bangkok legal consultants at Herrera and Partners H&P have prepared a summary of the licensing of this type of business in Thailand.

What Is the Difference Between a Restaurant and an Entertainment Venue?

Many business operators assume that if their establishment serves food and beverages, they may simply obtain a restaurant license, even if the premises feature live music, DJs, dancing, or primarily operate during nighttime hours.

However, under Thai law, the classification of a business does not depend solely on its name or the menu it offers. Instead, it is determined by the actual nature of the business operations, including factors such as:

  • Whether the sale of alcoholic beverages constitutes the primary business activity.
  • Whether live music, DJs, or other forms of entertainment are regularly provided.
  • Whether there is a designated area for dancing or entertainment activities.
  • Whether the business primarily operates during nighttime hours.
  • Whether the overall operation falls within the legal definition of an entertainment venue.

If the actual operation falls within the definition of an “entertainment venue,” the operator may be required to obtain a license under the Entertainment Places Act B.E. 2509 (1966), in addition to any restaurant or liquor licenses that may already have been obtained.

In principle:

  • Restaurants primarily provide food services, while the sale of alcoholic beverages is merely ancillary. Accordingly, they are generally not required to obtain an entertainment venue license, provided that the business does not exhibit the characteristics of an entertainment establishment.
  • Entertainment venues, on the other hand, principally provide entertainment services, such as pubs, bars, nightclubs, karaoke venues, or establishments where dancing, DJs, or live performances constitute the primary attraction. Such businesses are generally required to obtain an entertainment venue license, even if they also serve food and beverages.

Another type of business that is often mistakenly believed to require no specific license is a café. However, because cafés typically sell beverages and/or bakery products, they are generally required to obtain a license for operating a food establishment.

Holding Only Certain Licenses May Not Be Sufficient

In practice, a single business may be required to obtain several licenses simultaneously, including:

  • Restaurant operating license;
  • Liquor license;
  • Entertainment venue license (where applicable);
  • Building and safety-related permits; and
  • Public health or environmental permits, depending on the nature of the business.

Obtaining one type of license does not automatically authorize a business to conduct all types of activities. If the business subsequently changes its operational model, operators should assess whether additional licenses are required or whether their existing licenses should be amended.

Risks of Holding an Incorrect License

Operating a business under a license that does not accurately reflect its actual activities may expose the operator to various legal risks, including:

  • Suspension or closure of the business;
  • Criminal or administrative enforcement under applicable laws;
  • Civil liability for damages suffered by customers;
  • Criminal liability arising from violations of legal or safety requirements; and
  • Potential denial of insurance coverage if the business is found to have operated outside the scope of its licensed activities or in breach of policy conditions.

An Important Lesson for Business Operators

This incident demonstrates that legal compliance should begin from the initial stages of business planning, including the design of the business structure, the selection of the appropriate business category, and the application for the proper licenses. Compliance is not merely intended to enable a business to commence operations, but also to ensure that the business operates safely, minimize legal risks, and build confidence among customers, employees, and investors.

Furthermore, obtaining the correct licenses and complying with relevant safety requirements can enhance the safety of customers and service users in emergency situations, while helping to reduce potential losses and damages that may occur.

Operators planning to open a restaurant, café, restaurant-bar, pub, bar, club, or any establishment serving alcoholic beverages should carefully review whether their current operations remain consistent with the licenses they have obtained. If the business model changes—for example, by introducing live music, DJs, dancing areas, or extending operating hours—additional licenses or amendments to existing licenses may be required under Thai law.

Obtaining legal advice before commencing operations or before modifying a business model can significantly reduce the risk of non-compliance and help ensure that the business operates lawfully, securely, and sustainably over the long term. For foreign investors in this type of business in Thailand, this is critical in the short and long term of the business according to the experience of our lawyers in Thailand advising foreign investors in the entertainment and food and beverage industries.

If you are interested in applying for any business license or would like to learn more about how your business can benefit, please contact our corporate lawyers in Thailand at info@herrera-partners.com

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