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ResourcesCorporate and Tax AdvisoryThailand Corporate LawHow to Set Up an Amity Treaty Company in Thailand

How to Set Up an Amity Treaty Company in Thailand

Transcript of the above video:

As the title of this video suggests, we are discussing Amity Treaty Companies. Those are Companies which are formed pursuant to the provisions of the Treaty of Amity between the United States and the Kingdom of Thailand.

For those who are unaware, we have other videos on this channel specifically regarding Amity Treaty Companies but just a quick concise overview. Basically the provisions of the US-Thai Treaty of Amity and Economic Relations between the US and Thailand allows American citizens in Thailand to receive "National Treatment" pursuant to the provisions of the Treaty. This National treatment provides the benefit for Americans to be able to set up their Companies in the same manner as Thais can set up their Companies in Thailand. Most notably American citizens can own 100% of a Thai Company so long as it is certified pursuant to the provisions of the Treaty. They can also be the majority of the Board of such a company, it can be entirely American owned and operated. 

So the thing to take away from this video, it is mostly about how one sets up a company. We did another video on this channel specifically about setting up a Thai Limited Company. I would urge those viewers of this video to check out that video with respect to setting up the Thai structure but on the Amity certification side, there is a separate process for that. So what you are dealing with on that side of the game if you will on that side of the court, is Amity certification needs to occur in order for the Company obviously to be certified and to receive the Amity Treaty benefits. 

So the thing to take away from this video is first you form the Company them you seek the Amity Treaty benefits. This requires liaising with United States Commercial Service which is attached to the US mission here in Thailand at the US Embassy compound. Thereafter, documentation needs to be promulgated which then needs to be sort of liaised with the Thai Ministry of Commerce in order for further documentation to be issued and ultimately The Amity Treaty certificate will be issued as a result of the sort of back and forth between the US Government, the Thai Government and then ultimately a Foreign Business Certificate or an Amity Treaty Certificate, as I like to call it, will be issued which certifies that the Company is an American Company and therefore pursuant to the terms of the Treaty, that Company receives “National treatment” in the same manner as any Thai Company.

Now there are restrictions with respect to the Amity Treaty, so companies that would own land for example, that's going to be specifically exempted. There are exemptions even under the Treaty but for small businesses especially service oriented businesses here in Thailand, manufacturing concerns etc. an Amity Treaty Company is quite a benefit in terms of Americans not having to deal with the somewhat difficult provisions of the Foreign Business Act here in the Kingdom of Thailand. Also I would argue that there are a number of possible tax benefits which may arise out of Treaty certification. I went into the specifics on that in another video regarding Amity treaty certification and the notion of being a controlled foreign corporation. I am not going to get into the specifics of that and I should also preface anything with respect to Amity Treaty and tax that one needs to go ahead and seek specific tax advice from a legal professional and not take any information, specifically from this video or otherwise, any general information as applying to one specific case. 

That being said Amity Treaty certification is a real benefit. It is a real benefit for American Business people here in the Kingdom of Thailand and those who are interested in doing business who are American citizens or are American Companies, are well advised to look into the Amity Treaty here in Thailand in order to ascertain whether or not those benefits would be a boon to those individuals who are looking to do business here in Thailand.