Transcript of the above video:

As the title of this video suggests, we are discussing Corporate Compliance issues associated with Thai Amity Treaty Companies. For those who are unaware, the provisions of the US-Thai Treaty of Amity create a situation in which Americans and American companies can come to Thailand and do business notwithstanding the provisions of the Foreign Business Act. Those type of companies, specifically American Companies, can come to Thailand and do business with 100% American ownership as opposed to other nationalities which may have to operate under the Foreign Business Act and thereby end up in a situation where those companies have to be in a 49/51 percent position foreign to Thai ratio. So again, there's a lot of benefits associated with the US-Thai Treaty of Amity and doing business here in the Kingdom which brings us to the issues raised in this video.

I thought of making this video after reading a recent comment on our channel. Quoting directly from that comment: "What if you open a company under the US Amity Treaty, never sold product or services, zero income, and do not officially dissolve the company. What are the realistic repercussions one can expect?" Well first off it is kind of a weird fact pattern. Why would you ever set up something you are never going to use? But okay. Yeah in this fact pattern, somebody has set up a Company that doesn't do anything. There are ongoing Corporate requirements most notably you have got to do the audit, the tax audit every year, audited financial statement and the balance sheet has to be filed every year or that can lead to fines and even possible criminal liabilities. If that happens on a prolonged basis that can lead to again fines, Criminal liabilities possible sort of automatic dissolution. Again there are requirements, there are duties associated especially with the ownership and the management structure of a Thai Company that are not quite the same as for example an LLC in another jurisdiction because that is not an apples to apples comparison. Corporations in Thailand are much more akin to a so-called C Corp in the United States parlance, an Inc., incorporated as opposed to an LLC. There really isn't a counterpart in any traditional sense to the LLC in Thailand. There is just not that kind of counterpart here. I doubt we are going to see one anytime soon although famous last words; I say that and they will probably have one next week. But yeah I think the likelihood is quite low. So these companies are much more formalistic than when dealing with companies in other jurisdictions and yes they do have ongoing duties. So no, it is not a particularly good idea to set one up, do nothing with it and just abandon it.