US Thai amity treaty

[whitelotus]

Hi Does anyone knows more about this special arrangment between Us citizens and thailand called Thai Amity Treaty? It seems like Us can buy property or have business on their own name .Is there a trap?

[johnnyk]

Don't know the details but one thing is sure: you can't buy land in your own name even if you are American so fuhgeddaboudit.

[PeteC]

What is the US-Thai Amity Treaty?

The US-Thai Amity Treaty, also known as the Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States of America was signed on May 29, 1966 to give special rights and benefits to American citizens who wish to establish their businesses in Thailand.


Background of the Thailand Treaty of Amity

The Kingdom of Thailand and the United States of America, determined of promoting friendly relations and encouraging mutually beneficial trade and cultural ties between their people, has resolved to conclude a Treaty of Amity and Economic Relations, and for that purpose have appointed as their Plenipotentiaries.



The Thailand Treaty of Amity aims to provide significant advantages for US investors to run businesses in Thailand for both corporations and individuals. In particular, the Thailand Treaty of Amity provided the US two major trade advantages:

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The Thailand Treaty of Amity permits American companies to hold majority of the shares or the whole company, branch office or representative office located in Thailand.

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American companies may engage in business on the same basis as Thai companies, and are exempt from most of the restrictions of foreign investment imposed by the Alien Business Law of 1972.

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While the Thailand Treaty of Amity provides the abovementioned advantages, the US citizen is also sublinejected to several restrictions stipulated in the treaty. The Thailand Treaty of Amity limits American investors to engage in the following reserved activities:

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thai limited company Communications

thai limited company Transportation;

thai limited company Fiduciary functions

thai limited company Banking involving depository functions;

thai limited company Land Ownership, Exploitation of land or

thai limited company Other natural resources; and

thai limited company Domestic trade in indigenous agricultural products.




The following requirements must apply:

§ A minimum of 51% of shares must be held by American citizens
§ A minimum of 50% of directors must be American citizen(s)


Minimum Capital Requirements

Although treaty-protected companies are given advantage treatment under US-Thai Amity Treaty, they still need to satisfy the minimum capital requirement under the Foreign business Act (FBA). In case that the business is not restricted under the FBA, the minimum capital requirement for a treaty-protected company is THB 2 million. On the other hand, if the business is required to obtain a Foreign Business License under FBA, the minimum capital requirement must be THB 3 million for each business activity.

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Here is the excerpted information on how to register a company under the Thailand Treaty of Amity:

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Brief procedures to obtain Treaty of Amity certification

Phase 1: Document filing. The applicant obtains documents verifying that the company has been registered in compliance with Thai law. This is the first step in order to obtain the certification under the Thailand Treaty of Amity.

Phase 2: Certification by CS. Upon receipt of the preceding required documents the CS office will then provide certification to the Thai Department of Commercial Registration in the Ministry of Commerce that the applying business organization is an American owned and managed company and is therefore entitled to national treatment under the provisions of the Thailand Treaty of Amity.

Phase 3: Application to the Ministry of Commerce. After certification by the CS, original copies of all the above-mentioned required documents, along with a completed application forms, which may be obtained from the Department of Registration in the Thai Ministry of Commerce, must be given to the Thai Department of Commercial Registration in the Ministry of Commerce in order to fully register under the Thailand Treaty of Amity.
The above process can normally be completed within 4 to 6 weeks.


Registration procedures: Thailand Treaty of Amity

To receive protection under the Thailand Treaty of Amity, the applying business organization must pursue and administrative process to show 'registration under the Treaty of Amity.' The Thai government will not recognize an American Company or branch office until it is officially registered. In order to show "registration under the Treaty of Amity," the applying business organization may either consult with one of the many law firms in Thailand or observe the following procedures:

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For a sole proprietorship, all that is required to seek protection under the Thailand Treaty of Amity is a notarized copy of the owner's passport or birth certificate to prove U.S. citizenship (either by birth or naturalization). They must send this information to the Commercial Service office at the U.S. Embassy in Bangkok for certification.

For a Thai partnership, Thai branch office, joint venture, or Thai limited company, the following documents are required to be notarized by a Notary Public and sent to the Commercial Service office at the Embassy in Bangkok for certification:

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Articles of Incorporation
Bylaws of the Company
An Affidavit of the Manager or Corporate Officer, stating the following:

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Name of the Company, registration number, and date of registration.
Address of registered office.

Jurisdiction under which the corporation is registered.

Name, address, nationality, age and race of each director, number of shares held by each, and identification of the director(s) with the power to bind the company.

Authorized capital of the Company, number of shares and par value of each and amount of paid up capital.

Total number of shareholders, their nationalities, and number of shares owned or held by them.

For an applying U.S. company that is a sublinesidiary to a larger, parent company, the applying U.S. company, in addition to the above required documents, must also provide documents pertaining to its parent company to the Commercial Service office at the U.S. Embassy in Bangkok.

For an applying U.S. company wishing to invest directly in a Thai company to obtain a majority of the Thai company's shares, the applying company must show notarized proof that the majority of owners and directors of both the applying company and the company to be incorporated are (or will be) U.S. citizens either by birth or naturalization.

Upon receipt of the preceding required documents, the Commercial Service prepares a document that certifies that the applying business organization is an American owned and managed company and is therefore entitled to national treatment under the provisions of the Thailand Treaty of Amity.



After certification by the Commercial Service, original copies of all the above-mentioned required documents, along with a completed application form that may be obtained from the Department of Business Development of the Ministry of Commerce, must be given to the Thai Department of Business Development of the Ministry of Commerce in order to register under the Thailand Treaty of Amity and to complete the process.

Please allow at least four to five weeks to complete the entire process. It usually takes less than one week to obtain certification from the Commercial Service office. But registration by the Thai government can take anywhere from a few weeks to a few months. Please note that the above description of the procedure is based on the knowledge of the Commercial Service for procedures for coverage under the Thailand Treaty of Amity.

Consulting with a legal firm in Thailand may still be highly advisable as the procedures for application under the Thailand Treaty of Amity is very complex and time consuming.

[migrant]

My understanding is it is good for a business, but not meant for holding property

[MisterClean]

Hi Does anyone knows more about this special arrangment between Us citizens and thailand called Thai Amity Treaty? It seems like Us can buy property or have business on their own name .Is there a trap?

You wanna start a legal business that falls under the Thai Amity Treaty, be prepared to invest $180,000.00 into your Thai company as sufficient capital before you apply for your business liscence and tax registration.

You can find the real scoop about it by visiting a law office in Bangkok (not a Hua Hin law office) that has been recomended by the American Chamber of Commerce in Thailands website, or look at the rules for yourself at the Thailand Ministry of Foriegn Affairs website.

[Takiap]

As far as I know, anyone can own up to one rai in their own name if they invest a certain amount of money in Thailand.

Without the necessary funds, I don't think the average US citizen is entitled to land ownership. I think there used to be a law which allowed it in the past, but it has since been scrapped. I could be wrong, and I'm sure someone else will be along shortly to clarify.


I have also been told that it's possible for a Farang to inherit land from their Thai spouse, but again, only a maximum of one rai. This could of course also be false. I'm simply going on what my wife was told by a lawyer.......that she can legally leave our home, including the half rai it's built on to me if she were to die before me.


If in doubt, rent 50 square meters and invest in a tent.

[blue05]

Hi Does anyone knows more about this special arrangment between Us citizens and thailand called Thai Amity Treaty? It seems like Us can buy property or have business on their own name .Is there a trap?

You wanna start a legal business that falls under the Thai Amity Treaty, be prepared to invest $180,000.00 into your Thai company as sufficient capital before you apply for your business liscence and tax registration.

You can find the real scoop about it by visiting a law office in Bangkok (not a Hua Hin law office) that has been recomended by the American Chamber of Commerce in Thailands website, or look at the rules for yourself at the Thailand Ministry of Foriegn Affairs website.

Why would lawyers in bangkok know more than lawyers in Hua Hin?

[migrant]

Hi Does anyone knows more about this special arrangment between Us citizens and thailand called Thai Amity Treaty? It seems like Us can buy property or have business on their own name .Is there a trap?

You wanna start a legal business that falls under the Thai Amity Treaty, be prepared to invest $180,000.00 into your Thai company as sufficient capital before you apply for your business liscence and tax registration.

I have a quote from a large, well known, legal firm in BKK to form a Amity treaty company for 106,000 baht.

With that, a 3 million baht registered capital, and 4 thai employees, you get a work permit.

Amity companies declare their business, but if they change they need a further capital investment

Here is the treaty

http://www.thailawforum.com/database1/amity.html

[johnnyk]

Hi Does anyone knows more about this special arrangment between Us citizens and thailand called Thai Amity Treaty? It seems like Us can buy property or have business on their own name .Is there a trap?

You wanna start a legal business that falls under the Thai Amity Treaty, be prepared to invest $180,000.00 into your Thai company as sufficient capital before you apply for your business liscence and tax registration.

I have a quote from a large, well known, legal firm in BKK to form a Amity treaty company for 106,000 baht.

With that, a 3 million baht registered capital, and 4 thai employees, you get a work permit.

Amity companies declare their business, but if they change they need a further capital investment

Here is the treaty

http://www.thailawforum.com/database1/amity.html

Wages, benefits and paperwork up the yinyang every month for 4 employees who may amount to a huge pain in the butt. Is it really worth that much hassle to have a bit of land? IMO, no.