Introduction: US Thai Treaty of Amity
The US and Thailand Treaty of Amity provides qualified The US companies registered in The US doing business in Thailand or The US majority owned companies registered in Thailand the special treatment to gained the same rights and legal flexibilities as Thai companies do and will be also 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 shareholder or own the company 100% and also representative office, branch office located in Thailand.
The company wishing to be under The Treaty must be registered in The US or Thailand and the total outstanding shares must be held by The US shareholders, either The US business or individual, and the majority of the business's board of directors must be Thai or US individual. (US. citizens either by birth or naturalization.)
However, there are six exceptions to the treaty which means if The US investors are to engage in any of the following activities. The US and Thailand Treatment will not be 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 Process to register for The US and Thailand Treaty of Amity
In order to qualify under the Treaty of Amity, the conditions below must apply:
- At least 51% of shares must be held by American citizens.
- At least 50% of directors whose signature may bind the company must be American citizens.
If the above conditions are met, our next step is our job to process your application.
Tila legal will assist you to register your business at the Ministry of Commerce. And to obtain documents verifying that your company has been registered in compliance with Thai law, in Thailand or in The US. This step takes 1 week.
Tila legal will assist you to submit documents and letter confirming that the majority of business's shareholders are US citizens and receives the letter from the commercial section at The US Embassy in Bangkok. This step takes 1-2 days.
Tila legal will submit the certification documents and all required documents required to obtain alien business license to the Thai Department of Business Development of the Ministry of Commerce in order to register under the treaty and to complete the process. This step takes up to 4 weeks.