Who can benefit of the Thai-US Treaty of Amity?
This set-up is only available forvalid US passport holders.
What exactly is the Thai-US Treaty of Amity?
The Thai-US Treaty of Amity is a treaty between Thailand and the US. The treaty was in effectuntil 2005 when it finally expired due to Thailand’s commitments with the World Trade Organization.
Why is it still of use?
Even though it expired it is still in force until the USA and Thailand agree on a new agreement.
What are the Benefits of the US Amity Treaty?
The main benefit of the US amity Treaty is to act as an override in relation to the Thailand ForeignBusiness Act. This providesAmerican nationals withalmost the same rights asThai nationals with regards to owning and operating businesses in Thailand.
Are there any restrictions?
There are only seven activities which are restricted to US citizens as follows:
- Owning land.
- Inland communication.
- Inland transportation and communication industries.
- Fiduciary functions.
- Banking involving depository functions.
- Domestic trade in indigenous agricultural products.
- Exploiting land or other natural resources.
What else does Amity offer?
None other than those noted above. The Treaty does not bring any particular benefits in terms of visa, work permit requirements or the revenue department unlike the Board of Investment (BOI).
Are there any other restrictions?
- The company must have a minimum 3,000,000 THB paid up capital to qualify.
- The US shareholders will have to maintain the majority shareholding.
- There must be a majority of US or Thai directors. Directors of other nationalities are
- accepted but they are not allowed to have sole signatory power. In other words either they sign togetherwith a US Director or they can be Director without signature powers.
Common work permit question for this setup
Do I have to hire Thai staff for my work permit?
Yes, the standard obligation is having 4 Thai employees and paying taxes to the Social Security and Revenue Department.
How much registered capital do I need for a work permit?
The standard rule is 2 million Baht registered capital. There is an exception for people married to a Thai citizen to be only 1 million Baht registered capital.
Even operating your business with an Amity company does sound rather simple but setting up an Amity company is a process which incurs relatively high government fees. For a detailed and accurate quote please kindly contact us at contact@bangkokpractice.com for your personalized quote.
We are looking forward to help you grow your business and as well to receive your inquiry soon.
Legal Disclaimer: All information displayed on this site are compiled with the most amount of care. As law and life is bound to changes we cannot warrant that all information is accurate at all time and intended to be a guideline. In order to provide you a correct and up to scratch information please do contact our experienced business lawyers and accountants.