Set up your company without worrying about the process!
American citizens residing in Thailand can form a company under the Thai-US Treaty of Amity, which exempts them from certain restrictions declared by the Foreign Business Act.
Treaty of Amity Companies summarized
US citizens or Thai nationals are entitled to full or majority ownership of the company
Companies under this category are subject to regular corporate income tax rates. US shareholders may be subject to US taxes
Business activities are unrestricted in certain industries, though a license may be needed for others
Foreign Business Licenses are given once an Amity Certificate has been issued
Must have a minimum registered capital of 3 million Baht
The registration process takes around 2 months
What is the process?
1. Company registration at the Department of Business Development
2. Apply for an Amity Certificate at the US Embassy in Thailand
3. Apply for Approval from the Director of the Ministry of Commerce
4. Proceed to obtain a Foreign Business License
Registering a company should take up to a week if all requirements are in order
Notes on Treaty of Amity Companies
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100% Foreign-owned
The Treaty of Amity allows US-owned sole proprietors, branches, representative offices, or limited companies registered in Thailand or the US to be fully or majority-owned by US citizens. They must hold no less than 50% of the company’s shares.
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Reduced restrictions
The treaty also entitles American entities and individuals to venture into most businesses that may otherwise be prohibited to foreigners of other nationalities.
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Prohibited activities
US businesses are prohibited from engaging and investing in the following activities:
- Domestic agricultural trade
- Ownership of land
- Fiduciaries
- Transportation
- Communication
- Banking related depository functions
- Land exploitation and extraction of natural resources
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Directors
US-owned companies under the Treaty can only appoint Thai or US citizens as directors. If there are multiple directors, the US director must hold greater influence over the Thai director.
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Registered Capital
Companies seeking to avail the Treaty of Amity are required to have a minimum registered capital of 3 million Baht.