Since the last two years, H&P Bangkok lawyers has advised in new business set up of several daycare centers and retirements homes across Thailand. Our law firm in Thailand is aware of the surge of these new two type of businesses.
Regarding retirement homes, today Thailand is the second most aged country in ASEAN after Singapore with 20% of Thais older than 60. The government of Thailand is implementing new regulations for this as the public sector is aware that traditional investors such as Japan are also facing the increase of the aged society and will look for retirement homes in affordable and pleasant destinations in Asia such as Thailand.
Regarding a daycare center for children, there is a clear increase of demand by Thai wealthy families or foreign families where both parents are professionals working in Thailand. The supply or offer of this type of businesses and services is not substantial yet so it is attracting investment into Thailand that look for businesses as profitable as the existing international schools in Bangkok.
Daycare Center for Children in Thailand
To start a daycare center business in Thailand, it is essential for the business operator to examine the definition of the daycare center in Thai law. The definition and regulation for daycare center is stated in Child Protection Act B.E. 2546 (2003).
“Daycare Center” means a place which provides care and helps a Child develop with at least six Children not over six years of age, who are not related by kinship to the owner or operator of such Nursery, not including health care facilities or schools, public and private.
If your business will provide care and helps to at least six children, who are not over six years old, it is advised to apply for the daycare center license.
The Child Protection Act also regulates that it is mandatory to apply for the license to operate the daycare center according to section 52 of Child Protection Act B.E. 2546 (2003).
Operating the daycare center without a license could lead to the punishment of not more than one month of imprisonment, or fine not exceeding ten thousand baht, or both. Hence, a person, who wish to start a daycare center, should apply for the daycare center license before starting their business.
To apply for the daycare center license, a person must comply with the ministerial regulation. The regulation addresses the mandatory documents and services for the daycare center license. The following is the mandatory documents needed for the daycare center license:
-The evidence of the ownership or the rights over the building, which will be the daycare center. If it is other persons’ building, the applicant must have the letter of consent from those persons.
-The layout showing the daycare center’s location.
-The layout of the building including the details of usage of the building and every room.
-The regulation of operating the daycare center.
The above documents must be submitted for the approval of the permanent secretary or the provincial governor depending on the location of the daycare center. Besides the application for daycare center, operating a daycare center must comply with the ministerial regulation as well. Not complying with the ministerial regulation can lead to revoke the daycare center license.
The ministerial regulation indicates that the daycare center operator must have the sound level not exceeding 40 decibels while the child is sleeping. This is one of the regulations, which the ministerial regulation regulates. There are many more regulations in the ministerial regulation indicates the well-being of the child in the daycare center as well. It is essential for the daycare center operator to thoroughly examine the regulation as well.
To conclude, daycare center business is a license-required business. It is mandatory to apply for the license before operating the business. Operating the daycare center without the license will lead to the imprisonment and fine punishment. Besides the license application, daycare center operator must comply with the regulation of operating a daycare center as well. As there are many details on preparing and operating the daycare center, it is advised to have a legal advisor to prepare and start a business.
Retirement Homes in Thailand
As the number of the elder in Thai citizens are increasing, retirement home is getting the attention from more business people and foreign investors in Thailand. Retirement home business is becoming more popular too. A business operator, who wish to operate the retirement home, must follow the following regulation to operate the retirement home in Thailand.
Like daycare center for children, retirement home for elderly is under control of ministry of public health. Operating the retirement home must apply for the license with the ministry of public health. Retirement home, which is referred as nursing home, is considered as taking care the elder and the disabled business under minitrial regulation. Then, it is the health business establishment under Health Business Establishment Act, B.E. 2559 (2016) as well. The following is the definition of retirement home in the minitrial regulation.
“Nursing home” (retirement home) means the business of providing care, help, revive, or sustain the elder or the disabled, who has the problem on their health. The business must provide the activities between the days, or or help their living, or arrange the place to live, or the nursing home for the elder or the disabled excluding the proceeding in hospital.
The business provider must examine the definition thoroughly to see whether their business must comply with the Health Business Establishment Act. If your business can comply with the definition of nursing home, you must prepare the following preliminary documents for the application of health establishment license.
-Copy of ID card
-Company affidavit
-The layout and the map of the building
-Lease agreement
Other documents may be needed upon authorities’ discretion. The timeframe for all proceeding after submitting the completed documents should be around 67 days. Moreover, the applicant must also prepare the fee for application as well. The amount of the fee will depend on the size of the nursing home facility as follows.
– 500 baht for the area not exceed 100 sq. m.
– 1,500 baht for the area more than 100 sq. m., but not exceed 200 sq. m.
-3,000 baht for the area more than 200 sq. m., but not exceed 400 sq. m.
-5,000 baht for the area exceeding 400 sq. m.
Besides the responsibility to apply for the license, the nursing home business operator also have the responsibility to comply with the regulation under health business establishment act as well. For example, the business operator must provide enough lighting along the hallway. Failing to comply with the regulations could result in revoking or suspending the license. Hence, a business operator, who wish to operate the retirement home, must examine the regulation thoroughly to avoid the license revoking or suspending.
If you need legal advice to set up a Daycare Center or Retirement Home in Thailand, please contact our law firm in Bangkok at [email protected]
