The young college graduate's proposal has been cleared by the city's municipal corporation, which is run by the Sena, which is headed by Mr Thackeray's father, Uddhav.
Now, the state government will consider the proposal, which does not ask for extended hours for pubs or nightclubs, which shut at 1 am.
Last month, Mr Thackeray wrote on the Yuva Sena's Facebook page, "I strongly believe Mumbai needs a safe and yet vibrant night life. Our city virtually sleeps after midnight while people look for some chilling time post work. New York, London and even areas in our very own Indore are open 24 hours. Why not our lovely Mumbai? Do share this if you like this idea"
Currently, only hotels with at least four stars are allowed to have 24-hour cafes and restaurants.
Among the factors that the state government will consider is whether residential areas will oppose all-night business establishments, and the impact of longer hours on the city's under-staffed police.