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ResourcesCorporate and Tax AdvisoryThailand Corporate LawComparing Amity Treaty Companies With BOI Companies

Comparing Amity Treaty Companies With BOI Companies

Transcript of the above video:

In this video, we're going to go ahead and discuss Amity Treaty certification and compare that to BOI Board of Investment certification and just kind of provide a quick overview, comparison and contrast the different types of certification, what they entail. And I'm not really going to go into if one better than the other but sort of a comparison contrast will give one an idea what works under the circumstances.

The first thing to think about amity treaty applies only to Americans so anybody of any other nationality, some other type of structure or perhaps BOI maybe the only way to go. But for those Americans who are interested in this information especially for smaller businesses Amity Treaty Certification tends to be the best course of action because BOI tends to be a longer process. It's more involved. It tends to require a larger capital investment here in the Kingdom although this is a generalization. I'm not you know, case-by-case it varies.

That being said, again smaller setups are going to probably benefit more heavily from amity certification compared to larger setups which are going to benefit generally from BOI certification. Most notably because BOI certification includes things like tax holidays and abatement from certain types of taxes. The other nice thing about BOI depending on how the company is certified and under what conditions, there may be I won't say unlimited that let’s say virtually unlimited capacity to provide work permits for foreign nationals under that corporate umbrella.

The other thing to think about with respect to BOI certification again notwithstanding taxes, there's certain business activities that may otherwise be restricted even otherwise restricted pursuant to the treaty. As there are certain restrictions under the Amity treaty that do not cover certain types of business activity that one may or may not be able to go ahead and get approval for under BOI certification. So there's all these things to think about with respect to how long wants to go ahead and set up once business here in the Kingdom.

That being said, if taxes are a major issue or if there's a large capital infusion being made or certain technology is being transferred into the Kingdom here, all of these are going to be major factors which are going to go ahead and contribute probably to one wanting to go ahead and seek a BOI. If one is simply wishing to operate what could be described as a smaller or medium-sized business, that's not a particularly great. I shouldn't say great, but not a particularly innovative quality with respect to things like technology or medical technology this type of thing are indeed. Perhaps an amity treaty structure may be better under these circumstances.

Again, it's case-by-case. Those watching this video are strongly recommended to go ahead and contact a legal professional in order to get an opinion about what's going to be best in their particular situation. But generally speaking in most circumstances, it gets pretty clear what the professional has been able to look at what one wants to do here in the Kingdom, it clears up pretty quickly which way is going to be the best way to move forward with respect to the type of certification for the corporation.