The US and Thailand Treaty of Amity provides qualified US companies registered in the US and doing business in Thailand or US majority-owned companies registered in Thailand with special treatment so that the gain the same rights and legal flexibilities as Thai companies have, and will be also be exempted from most of the restrictions on foreign investment imposed by the Alien Business Decree of 1972.

 

The US and Thailand Treaty of Amity can be an advantage for international investors wishing to do business in Thailand. Under the Treaty the US Company can maintain the majority of shares or own the company 100%.

 

The primary benefit of the Amity Treaty to US citizens in Thailand is to manage and own companies in Thailand without needing majority Thai shareholders. In other words, foreigners who are not US citizens would normally require a Thai partner holding a majority of the shares in the company registered under Thai law. 

 

A company wishing to qualify under the Treaty must be registered in the US or Thailand, and the total outstanding shares must be held by US shareholders, either a US business or individual, and the majority of the business’s board of directors must be American or Thai individuals. 

 

In order to qualify under the Treaty, the conditions below must apply:

 

1. At least 51% of the shares must be held by American citizens.

2. The majority of directors whose signature may bind the company must be American and/or Thai citizens

 

Treaty of Amity business capital requirements:

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Businesses not restricted under the Foreign Business Act must have capital of two million Baht for a Treaty-protected company.Businesses that are required to obtain a Foreign Business License under the Foreign Business Act have a minimum capital requirement of three million Baht for each business activity.

 

However, there are six exceptions to the Treaty, which means that if US investors are to engage in any of the following activities, the Treaty provisions will not apply

 

• Inland communication

• Inland transportation 

• Fiduciary functions 

• Banking involving depository functions 

• Exploitation of land or other natural resources 

• Domestic trade in indigenous agricultural products

 

The registration process takes approximately four weeks. 

 

To request further information or arrange an obligation-free meeting with one of our legal counsel, please contact us.