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ResourcesCorporate and Tax AdvisoryThailand Corporate LawDoing Business in Thailand as an American Company

Doing Business in Thailand as an American Company

Transcript of the above video:

I get a question rather frequently from folks that are in the United States or that have American Corporate concerns and they basically want to do business here in the Kingdom. 

The basic question is, "Are there any benefits to being an American to doing business in the Kingdom?” and the fact of the matter is yes.  Pursuant to the provisions of the US-Thai Treaty of Amity, American Companies are not necessarily subject to the more stringent aspects of the Foreign Business Act here in the Kingdom. Most notably, an American Company could own a corporate subsidiary here in the Kingdom virtually 100% and not be subject to the Foreign Business Act.

Again the US-Thai Treaty of Amity is a bilateral agreement signed in the 60s between the United States and the Kingdom of Thailand. It was an amendment to prior treaties that go back almost 200 years here than in the Kingdom and it basically is a Treaty of Commerce and it provides that American Companies doing business here in the Kingdom are provided "National treatment" with respect to their business dealings here. As a result of this, this can be very beneficial for an American company looking to set up an operation here in the Kingdom or to perhaps buy out an existing established company here in the Kingdom because that American Company could go ahead and pursue Amity Treaty benefits as part of the merger deal and as a result of that, go ahead and gain substantial benefit most notably not needing to be a minority shareholder but they could be the majority shareholder of an operation here in the Kingdom.  So it is substantially beneficial for those looking to do business here. There are many stipulations within the Treaty that are exempt from the treaty's provisions so things like ownership of land here in the Kingdom are not covered by the provisions of the Treaty. There are some specific exceptions made under the Treaty.

That being said, as a practical matter and just generally, US-Thai Treaty of Amity is a very beneficial legal document. It can provide many legal benefits and practical benefits in many ways for corporations or individuals looking to do business in the Kingdom of Thailand.