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ResourcesCorporate and Tax AdvisoryThailand Corporate LawAre There Restrictions on the Size of an Amity Treaty Company in Thailand?

Are There Restrictions on the Size of an Amity Treaty Company in Thailand?

Transcript of the above video:

As the title of this video suggests, we are discussing the US-Thai Treaty of Amity. Specifically we are discussing this because for those who are unaware, American citizens or American corporations can operate in Thailand with "National treatment" pursuant to the US-Thai Treaty of Amity. 

What this means is an operation which is deemed and certified by the Ministry of Commerce here in Thailand to be an American Company and have their Amity Treaty Certificate, those companies are treated as if they were a Thai Company; that is what national treatment in the provisions of the Treaty means. A question I sometimes get is "how big and in some cases how small can an Amity Treaty Company be?" Well you know obviously when you are dealing with a foreign national in Thailand, notwithstanding the provisions of the Treaty, the Company has to be big enough to support a Work Permit so the rules regarding Work Permits are often times going to dictate the level of smallness for lack of a better term.

With respect to bigness, how big can they be? Could you have a major corporation in Thailand or even a publicly traded company? Based on our research and based on what we have looked at in the law and the Treaty itself, yeah it can be a really major going concern here in Thailand. In fact I happen to know there are a lot of major operations in Thailand, significantly large operations in Thailand that are in fact Amity Treaty certified. 

So, yeah it is possible to have a pretty big operation going in Thailand. There is not some rule that says “Oh, these Amity Companies have to be SMEs”. I would say that a lot of Americans doing business here especially individuals, small businesses, yeah they do enjoy the benefits of the Treaty but they don't have to depending on their circumstances and they don't have to be small businesses either. Bigger businesses can operate in Thailand under the terms of the Treaty between the United States and the Kingdom of Thailand.