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Belaws Home ›› Thailand ›› Incorporation ›› U.S Treaty of Amity company

incorporation

U.S Treaty of Amity company

All aspects of your U.S Treaty of Amity company registration taken care of – saving you valuable time and resources.

The Treaty of Amity (the Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States of America), is a bi-lateral agreement between Thailand and the US. The treaty was signed on May 29, 1966 and affords special rights and benefits to American citizens who are looking to establish their businesses in Thailand.

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Belaws - Branch Office

What is a U.S. Treaty of Amity company?

The Treaty of Amity aims to provide significant advantages for US investors and companies to enter the Thai market for both corporations and individuals. The Thailand Treaty of Amity grants entities from the US the following major advantages:

  • The Treaty of Amity allows American companies to hold the majority of the shares in a whole company, branch office or representative office established in Thailand.
  • American companies may also operate a business on the same foundations as Thai companies.
  • American companies will also be exempt from most of the restrictions relating to foreign investment set out by the Alien Business Law of 1972.

• Foreign ownership

Up to 100% ownership for US Citizens.

• Structure Requirements

A minimum of 51% of shares must be held by American citizens.

A minimum of 50% of directors must be American citizen(s).

• Foreign Business License

Treaty of Amity companies do not need to apply for a Foreign Business Licence.

• Minimum Capital Requirements

Must comply with the requirements set out in the Foreign Business Act (FBA).

Non restricted business – THB 2 million.

Restricted business – THB 3 million per activity.

• Business Restrictions

Treaty of Amity companies may operate a business on the same foundations as Thai companies (except for restricted sectors e.g. real estate and fiduciary services).

• Hiring of Foreign employees

A ratio of 4 Thai employees per foreign employee hired is required to support a Work Permit.

Pricing

FROM

THB 60,000 *

+ 7% VAT

5 business days

(Average time from the moment
we receive complete information from you)

Get started

* + Government Fees: THB 8,500

Application handled by a corporate expert.

Scope of work

  • Registering a Limited Company.
  • Preparing and filing the relevant documents ready for submission.
  • Liaise with the The Commercial Services Office (CSO) and Thai Ministry of Commerce to ensure a smooth application process.
  • Answering questions in relation to the Treaty of Amity and the application process.
  • Advising you on the post registration compliance requirements.

Need more?

Additional services that you may need as well

  • Bookkeeping & tax filings
  • Work Permit

What is the process for obtaining a U.S Treaty of Amity certification?

Be prepared for registering your U.S Treaty of Amity certification with our comprehensive and free registration checklist.

Be prepared for registering your U.S Treaty of Amity certification
with our comprehensive and free registration checklist.

Pre-registration requirements

Our experts can assist you with the initial steps for obtaining your U.S. Treaty of Amity certificate. This includes collecting and compiling the relevant documents for the following purposes:

  • Verifying that the company has been registered in compliance with Thai law. This is required to obtain certification from the CSO.
  • Submission to the Thai Department of Commercial Registration in the Ministry of Commerce.

TIME LINE

A few days* to collect documents from the parent company and prepare the application. (up to one-month* if English translation required).

Obtaining a certificate from the Commercial Services Office (CSO)

Our team of experts will submit all the required documents to the CSO. After confirmation that the documents are all in order, the CSO will then provide confirmation to the Thai Department of Commercial Registration in the Ministry of Commerce that the applicant is an American owned and managed company and is therefore entitled to the provisions of the Thailand Treaty of Amity.

TIMELINE

One day for filing the application.

Application to the Ministry of Commerce

Our team of experts will file all the remaining required documents and application forms with the Thai Department of Commercial Registration in the Ministry of Commerce in order to fully register under the Thailand Treaty of Amity.

TIMELINE

One day for filing the application.

Post-registration requirements

Our experts can assist with you the next necessary steps to start your business:

  • Opening a bank account
  • VAT registration (not always required)
  • Social Security Office registration (required within 1 month of hiring a new employee)
  • Setting up the accounting and tax filing system
  • Obtaining business licenses
  • Visa and Work Permit for the foreign employees

TIMELINE

1 day for Social Security Registration.
1 week for VAT Registration.
2 days* to open a bank account.
2 weeks * to obtain a work permit.

Frequently asked questions

Do I need a lawyer to register a U.S. Treaty of Amity company?

There is no legal requirement to appoint a lawyer to register a company under the U.S.Treaty of Amity. However, it is highly recommended to ensure a smooth process and increase your chances of success. At Belaws, our expert lawyers take a pragmatic approach and will intervene only when it is strictly necessary for savvy clients.

Are there any restrictions for Treaty of Amity companies?

There are several restrictions contained within the treaty which should be considered. The Treaty of Amity prohibits American investors from operating in the following reserved activities:

  • Communications
  • Transportation
  • Fiduciary functions
  • Banking involving depository functions
  • Land Ownership, Exploitation of land or
  • Other natural resources; and
  • Domestic trade in indigenous agricultural products.

The following requirements also apply:

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

What are the advantages of registering a company under the Treaty of Amity in Thailand?

The Treaty of Amity allows US citizens to completely own or hold a majority of shares in companies undertaking business activities in which majority foreign ownership is usually restricted under the Foreign Business Act. As a result, American companies may operate a business in Thailand on a level playing field with Thai companies.

What are the disadvantages to registering a company under the Treaty of Amity?

Registering a company under the Treaty of Amity usually takes longer and is more expensive than registering other types of company structures in Thailand.

Companies operating under the Treaty of Amity are also subject to greater scrutiny from the relevant authorities compared to Thai majority companies.

Furthermore, if the company seeks to perform additional business activities other than those mentioned in its original Treaty of Amity Certificate, a new application to the Ministry of Commerce may be required.

Can you own land through a company under the Treaty of Amity?

Unfortunately not, the Treaty of Amity does not permit foreign owned companies to own land.

Explore other structures

  • BOI Company
  • Private Limited Company
  • Branch Office
  • US-Thailand Treaty of Amity

Question Before You Begin? *

Question Before You Begin? *

Speak to our expert by scheduling a consultation
on how to set up a U.S Treaty of Amity company in Thailand with Belaws.

(*) This Conversation is intended to provide basic answers to questions you may have about the U.S Treaty of Amity company. But it is not a Lawyer’s Consultation.

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