For a company to qualify for protection under the US-Thai Treaty of Amity, it must have authorized American directors and majority ownership. The company must then submit documents to the Commercial Service office at the U.S. Embassy in Bangkok for certification.
The certified letter from the Commercial Section at the Embassy will exempt the business from most of the restrictions on foreign investment imposed by the Foreign Business Act. Tila Legal can assist in this process.
Obtaining a Treaty of Amity Letter
Those looking to invest in a company under the Treaty of Amity can do so as long as they meet certain criteria. This treaty allows businesses that are majority owned by American citizens to operate in Thailand and receive national treatment. However, these companies are limited to engaging in the activities that the Ministry of Commerce has authorized them to engage in.
In order to apply for protection under the treaty, business owners must file specific paperwork with the US Commercial Service office located in the US Embassy in Bangkok. This information must include a notarized copy of each owner’s passport or birth certificate that proves their US citizenship, and the company’s registration documents.
Depending on the structure of the company, there may also be a capital requirement. If the company needs to obtain a Foreign Business License, it will need to have a minimum of 2 million baht in registered capital. Silk Legal can help ensure that this is met.
Obtaining a Foreign Business License
If you are looking to set up a business that will take advantage of the provisions offered by the US-Thai Treaty of Amity, there is specific documentation that needs to be filed first. Typically, you will need to have the owners and directors of the company notarized or certified by the US Embassy. Once this is complete, you will need to submit the documents to the Commercial Services Office.
Once the documents are validated, the CSO will issue a certification letter to the Department of Commercial Registration in the Ministry of Commerce that states that the applicant is an American-owned and managed company, entitled to national treatment under the Treaty of Amity. This letter will allow the company to engage in restricted businesses as permitted by law.
Unlike other types of companies, Amity Treaty companies cannot own land or engage in certain activities such as communications, transportation and domestic trade of indigenous agricultural products. Plizz can help you navigate these restrictions and get your business up and running quickly.
Obtaining a Work Permit
Treaty of Amity companies are exempt from certain restrictions set forth in the Foreign Business Act. However, these companies are still subject to the minimum capital requirements for a Foreign Business License. This is why it is important to consult with a legal firm like Plizz before registering your company under the Treaty of Amity.
The US-Thai Treaty of Amity provides many privileges for American citizens and businesses looking to establish themselves in Thailand, including the ability to wholly own or maintain a majority shareholding in their companies, and exemption from the Foreign Business Act’s restrictions on foreign investment. However, to obtain these benefits, the company must be registered under the Treaty of Amity and certified by the U.S. Commercial Service office at the U.S. Embassy in Bangkok. Despite these advantages, the process can be time consuming and complex, especially for new businesses. For example, work permits are only granted to Amity companies that sponsor 4 Thai employees and have 2 million in registered capital.
Obtaining a Visa
The Thailand – US Treaty of Amity provides significant benefits and privileges for companies that register under it. However, it is important to understand the process involved before deciding whether or not this is the right option for your business.
In addition to exempting US citizens from most restrictions on foreign investment imposed by the Foreign Business Act, the Treaty of Amity grants national treatment to U.S. companies and shareholders. This means that they can engage in activities on the same terms as Thai companies.
However, there are a few restrictions that must be taken into consideration. For example, the Treaty of Amity does not allow companies to engage in communications, transportation or domestic trade in indigenous agricultural products. It also prevents a company from engaging in fiduciary or depository functions related to banking. In addition, a company that wishes to hire a foreign worker must have a minimum of THB 2 million in registered capital and one foreign employee for every four full-time Thai employees.