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ResourcesCorporate and Tax AdvisoryThailand Corporate LawIs a Thai Amity Treaty Certificate a Foreign Business Certificate?

Is a Thai Amity Treaty Certificate a Foreign Business Certificate?

Transcript of the above video:

This is a question that has come up here recently in a couple of points in what we have been working on here in the office. So "Is an Amity Treaty Certificate a Foreign Business Certificate?" People ask this because Foreign Business Certificates sort of operate, they are not covered by the Foreign Business Act. 

The Foreign Business Act here in Thailand requires that foreign companies or companies that are designated as foreign that they cannot engage in certain activities under List 1, 2 & 3 depending on the nature of the Foreign Business Act itself. People have asked me "An Amity Treaty Certificate, why does it operate and overcome if you will the Foreign Business Act or the provisions associated therewith?" Well it is because it is designated a Foreign Business Certificate as opposed to a Foreign Business License which is a different thing; in many cases, it is nearly impossible to obtain. An Amity Treaty Certificate is considered a Foreign Business Certificate in the American legal context pursuant to article 6 of the US Constitution, the so-called supremacy clause, basically treaties ratified by the senate are "the law of the land" and so they supersede for example an Act passed by Congress even if it is signed by the President. If it is a Treaty that has been duly ratified, Treaty Law can even trump domestically created law. That is kind of similar to the way that the Treaty operates with respect to the Foreign Business Act and they basically just gave Amity Treaty Certificates this appellation Foreign Business Certificate which then allows them to operate notwithstanding the provisions of the Foreign Business Act.