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Organization and Capitalization of Thai Amity Treaty Companies

Transcript of the above video:

As the title of this video suggests, we are discussing the US-Thai Treaty of Amity. We are specifically discussing Amity Treaty Companies' organization capitalization formation. 

In recent months, we have had folks that have contacted us regarding incorporation and we have noticed an ongoing trend where they get on the internet and they start to work themselves up into a bit of a frenzy when they are looking at the requirements associated with setting up a Thai Company, the formalities associated with for example a Limited Company setup. 

To be clear, establishing a Limited Company in Thailand is not very akin to setting up for example like a Limited Liability Company or an LLC in the United States. It is a more cumbersome process, it is more detailed, more complexity, it is much more akin to a so-called C Corporation, a C Corp in the United States, an Inc. than to an LLC. Meanwhile, even then there is more formality than I would even argue an Inc. or a C Corporation has in the United States. While this can be a little bit daunting, it is not an insurmountable obstacle. In fact Thailand is actually especially if you are utilizing a legal advisory service, a law firm that has Thai legal professionals that deal with the incorporation process on a daily basis, it is not overly daunting. Yes there are formalities, but I can tell you our Thai corporate team deal with it daily and it is just a matter of moving it through and getting it done correctly, getting it filed correctly. It takes the time it takes but it is not forever. It doesn't take eons to get it done. It is usually at worse days, sometimes weeks to get something done with respect to formation of a company. 

Now with an Amity Treaty Company,  there is also the added component of getting certification formalized and that is important because under the terms of the US- Thai Treat of Amity once a company is certified as an American company operating in Thailand and is issued their Amity Treaty Certificate, they are granted what is called National treatment so they are treated as if they were a Thai Company for purposes of doing business in Thailand which allows them to if you will supersede the provisions of the Foreign Business Act which basically allows an American or Americans to own a majority or the totality of a Thai Company doing business under the Treaty of Amity in the Kingdom of Thailand. 

So long story short, there are major benefits associated with the Treaty but it does require extra formality if you are comparing it to the incorporation of a standard Thai Company.