The US-Thai Treaty of Amity, originally signed in 1833 and amended in 1966, allows American citizens and companies that are incorporated in the United States or majority-owned by American citizens to enjoy privileges in Thailand. These include national treatment, which enables American companies to engage in business on the same basis as Thai companies and exempts them from most restrictions on foreign investment.
Benefits
The US-Thai Treaty of Amity gives American citizens special rights regarding establishing businesses in Thailand. Under the Treaty, Americans can own the majority of shares or even entire companies without needing to have a Thai partner. Furthermore, Treaty companies are exempt from many of the restrictions placed on foreign investors and operate in much the same way as Thai-owned businesses.
Other benefits include tax exemptions and access to dispute resolution. Furthermore, US companies can remit profits and dividends earned in Thailand without restriction.
It’s important to note that the US-Thai Treaty of Amity must be properly certified before it can take effect. This involves compiling all the necessary documents verifying that your company complies with US law. Plizz can handle the whole process, ensuring that all documents are filed correctly and in the correct order. This can save weeks or months of waiting time. This is an important part of obtaining treaty protection, so don’t leave it to chance.
Requirements
The Thailand – US Treaty of Amity offers significant benefits to American citizens and businesses that register with the appropriate government offices. However, the process can be complicated and requires many documents to be prepared before applying for protection under this special treaty. For instance, an American business wishing to receive the benefits of this treaty must first incorporate as a foreign company in Thailand.
The incorporated business must compile several documents including its articles of incorporation, lists of shareholders and their nationalities, and notarized copies of the shareholders’ and directors' passports. If the company is a subsidiary of a parent company, the documents for the parent must also be submitted.
Additionally, companies registering under this treaty must comply with local regulations regarding import permits and domestic absorption rates for agricultural products. Companies are advised to consult with a knowledgeable business attorney to prepare these documents. Furthermore, the registering company must be willing to pay gratuity payments to customs officials based on transaction value.
Procedures
In order to take advantage of the treaty, companies must complete specific paperwork. The documentation must show that the applying company is majority American-owned and that it will continue to be a majority American-owned company after it incorporates in Thailand. The Commercial Service Office (CSO) will then certify the documents and submit them to the Department of Commerce, which will then register the business as a Foreign Business Certificate.
Under the treaty, American companies can maintain a majority shareholding or wholly own their company in Thailand and engage in business activities on a national treatment basis, exempt from most restrictions on foreign investment imposed by the Foreign Business Act of 1999. The companies can also open branch offices and obtain visas for employees.
Setting up a company under the treaty can be a complicated process. Getting professional help from Plizz can ensure that your registration is successful and that you get the most out of this agreement.
Taxes
The Thai-US Treaty of Amity provides significant benefits for citizens of the USA and companies seeking to establish a presence in Thailand. The main benefit is that a company registered under this treaty receives national treatment, meaning that it is exempt from many of the restrictions on foreign investment mandated by the Alien Business Law of 1972.
However, there are certain restrictions, including a minimum registered capital requirement and limits on the activities that can be undertaken by a treaty company in Thailand. It is therefore highly advisable to seek specialist advice before starting a company under the US-Thai Treaty of Amity. Plizz can help you with this process, ensuring that all the necessary documents are prepared and submitted correctly. A single mistake can cause months of delays in the registration process. We can also help you understand the requirements and procedures for registering a company in Thailand, and help you find a suitable legal firm.