US Treaty of Amity
What is the US Treaty of Amity?
The Treaty of Amity and Economic Relations between Thailand and the United States of America is a bilateral agreement signed in 1966 with the objective of promoting economic relations between the two countries.
This treaty grants special privileges to American companies and American citizens conducting business in Thailand, exempting them from many restrictions under the Foreign Business Act B.E. 2542 (1999) that normally apply to other foreign nationals.
Treaty of Amity Benefit Application Services
The US Treaty of Amity provides several significant benefits to American investors, and Thai Visa Legal can help you take full advantage of these privileges.
Key Benefits Under the Treaty
Land Ownership – American companies can purchase and own land for business operations
100% Shareholding – American investors can own 100% of a business in Thailand without requiring Thai partners
Reserved Business Activities – Ability to operate businesses normally reserved for Thai nationals under the Foreign Business Act (with some exceptions)
National Treatment – Receive the same treatment as Thai companies regarding regulations and taxation
Investment Protection – Protection against expropriation or nationalization
Exceptions to Treaty Benefits
Despite the special privileges, there are some business types not covered by the treaty, including:
Communications and transportation
Domestic trade in indigenous agricultural products
Professional services
Mining
Banking involving depository functions
Application Process
Document Preparation – Prepare necessary documents to prove American nationality and business details
Application Submission – Submit application to the Department of Business Development, Ministry of Commerce
Consideration – Application review by the Department of Business Development and relevant agencies
Approval – Receive certification from the Ministry of Commerce to conduct business under the treaty
Required Documents
Certificate of incorporation for the US company (for legal entities)
Passport and proof of American nationality (for individuals)
Evidence showing relationship with US parent company (if applicable)
Business plan and details of business operations in Thailand
Financial status documents
Other documents as required by the Department of Business Development
Thai Visa Legal Services
Thai Visa Legal has extensive experience and expertise in obtaining benefits under the US Treaty of Amity, offering services including:
Eligibility Analysis – Analyzing whether your business qualifies for and can receive benefits under the treaty
Strategic Consultation – Advising on how to structure your business for maximum benefit
Document Preparation – Preparing all necessary documents, including translation and certification
Application Filing – Filing applications and tracking status with relevant authorities
Coordination – Liaising with government agencies and resolving potential issues
Post-Approval Guidance – Advising on next steps after approval
Company Formation Services Under the Treaty
Establishing a company under the US Treaty of Amity involves specific processes and requirements that differ from standard company formation. Thai Visa Legal specializes in establishing companies under this treaty.
Popular Business Types
American investors commonly establish the following types of businesses in Thailand:
Consulting and service businesses
Retail and wholesale businesses
Real estate businesses
Manufacturing businesses
Educational and training businesses
Technology and software businesses
Requirements for Company Formation
Companies established under the treaty must meet the following qualifications:
American Nationality – The company must be at least 51% owned by Americans (though can be up to 100%)
Registered Capital – Must have minimum registered capital as required by law (depending on business type)
Business Objectives – Must specify clear business objectives consistent with activities permitted under the treaty
Directors and Authorized Signatories – Must have directors and authorized signatories as required by law
Company Formation Steps
Company Name Reservation – Reserve company name with the Department of Business Development
Formation Documents – Prepare Memorandum of Association and Articles of Association
Registration – Register the company with the Department of Business Development
Tax ID Number – Obtain a Tax Identification Number from the Revenue Department
Treaty Rights Application – Apply for rights under the Treaty of Amity
Specific Business Licenses – Obtain specific licenses for certain business types (if necessary)
Bank Account Opening – Open a bank account in the company’s name
Social Security Registration – Register with the Social Security Office
Thai Visa Legal Services
Thai Visa Legal provides comprehensive services for establishing companies under the US Treaty of Amity:
Business Structure Planning – Advising on appropriate company structures
Company Name Reservation – Handling company name reservation with the Department of Business Development
Formation Document Preparation – Preparing all necessary documents for company formation
Company Registration – Handling company registration with relevant authorities
Treaty Rights Application – Processing applications for benefits under the treaty
Specific Business License Applications – Processing applications for specific business licenses
Bank Account Opening – Assisting with opening bank accounts in the company’s name
Visa and Work Permit Applications – Assisting with visa and work permit applications for foreign employees
Annual Reporting Services
Companies operating under the US Treaty of Amity are required to prepare and submit annual reports as required by law. Failure to comply with requirements may result in loss of treaty benefits.
Required Reports
Annual Business Operations Report
Report on operational results and business activities
Information about employee numbers and employment
Information about land ownership and assets
Submit to the Department of Business Development within 30 days after the annual shareholders’ meeting
Annual Financial Statements
Financial statements audited by a certified auditor
Notes to financial statements
Auditor’s report
Submit to the Department of Business Development within 1 month after shareholder approval
Tax Filing
Corporate Income Tax Return (PND 50) – File within 150 days after the end of the fiscal year
Mid-Year Corporate Income Tax Return (PND 51) – File within 2 months after the end of the first 6 months
Withholding Tax Returns (PND 1, 3, 53) – File by the 7th of the following month
Value Added Tax Return (PP 30) – File by the 15th of the following month
Ministry of Commerce Reporting
Report changes in directors or authorized signatories
Report changes in office address
Report changes in registered capital
Submit within 14 days of the change
Thai Visa Legal Services
Thai Visa Legal offers comprehensive annual reporting services for companies under the US Treaty of Amity:
Business Operations Report Preparation – Preparing annual business operations reports in the required format
Financial Statement Preparation – Preparing and auditing financial statements by certified auditors
Tax Filing – Preparing and filing various tax returns
Change Reporting – Preparing and filing reports on various changes
Deadline Tracking – Monitoring and notifying of deadlines for report and document submissions
Shareholders’ Meeting Assistance – Assisting with annual shareholders’ meetings
Coordination – Liaising with relevant government agencies
Importance of Accurate Reporting
Accurate and timely reporting is crucial for companies under the US Treaty of Amity because:
It helps maintain status and benefits under the treaty
It prevents fines or penalties from regulatory authorities
It builds credibility for the company in the eyes of government agencies and business partners
It aids in business planning and financial decision-making
Special Requirements Consulting Services
Operating a business under the US Treaty of Amity involves special requirements that companies must comply with. Getting expert consultation helps ensure smooth business operations and proper legal compliance.
Key Special Requirements
Maintaining Shareholding Ratio
Must maintain American shareholding of at least 51%
Must report changes in shareholder structure
Land Usage
Land purchased under the treaty must be used for business purposes only
Must report purchase or disposal of land
Business Operations
Must conduct only business activities permitted under the treaty
Must obtain permission for changes or additions to business types
Employment
Must comply with Thai labor laws
Must develop and train Thai employees
International Fund Transfers
Must report international fund transfers according to Bank of Thailand requirements
Must comply with foreign exchange control laws
Points to be Cautious About
Changes in relevant laws and regulations
Interpretation of the treaty and its exceptions
Compliance with tax requirements
Maintaining documents and evidence related to American nationality
Conducting business outside the scope of the treaty
Thai Visa Legal Consulting Services
Thai Visa Legal has a team of legal consultants and experts in the US Treaty of Amity ready to advise on various issues:
Compliance Consulting – Advising on compliance with various special requirements
Business Expansion Consulting – Advising on business expansion within the scope of the treaty
Structural Change Consulting – Advising on changes to company structure and shareholders
Tax and Financial Consulting – Advising on relevant tax and financial issues
Dispute Consulting – Advising and assisting in case of disputes or issues with government agencies
Legal Updates – Notifying of changes in relevant laws or regulations
Long-Term Planning
In addition to advising on current compliance requirements, Thai Visa Legal also helps with long-term planning for your business:
Preparation for Future Changes – Planning for potential changes to the treaty or relevant laws
Business Succession Planning – Advising on business succession and maintaining benefits
Business Expansion Planning – Planning for business expansion in Thailand and Southeast Asia
Risk Assessment – Assessing and planning for managing risks that may arise from business operations
Current Status of the Treaty of Amity
The US Treaty of Amity remains in effect today, although there have been periodic discussions about reviewing or updating the treaty. American investors should be aware that:
The treaty may be subject to changes or amendments in the future
It’s important to regularly monitor news and changes in legislation
Getting expert consultation will help stay updated and adapt appropriately
Thai Visa Legal closely monitors changes to the treaty and relevant laws and is ready to advise on potential impacts on your business.
Why Choose Thai Visa Legal?
Thai Visa Legal is the ideal choice for American investors looking to conduct business in Thailand under the Treaty of Amity for the following reasons:
Specialized Expertise – Specialized expertise in the US Treaty of Amity
Extensive Experience – Over 15 years of experience providing Treaty of Amity services
Professional Team – A team of lawyers, accountants, and tax experts with specialized knowledge
Comprehensive Services – Services covering every step from obtaining benefits to establishing companies and conducting business
Extensive Network – Network and good relationships with relevant government agencies and organizations
Understanding of Business Cultures – Understanding of both Thai and US business cultures
Proven Success – Consistent track record of successful service delivery
Contact Us
If you are an American investor interested in conducting business in Thailand under the Treaty of Amity, or a business owner seeking advice on treaty compliance, contact Thai Visa Legal today for a free consultation!
Phone: 080-765-6400
Email: info@thaivisalegal.com
Website: www.thaivisalegal.com
Office: 83 Sukhumvit 93, Bangchak, Prakanong, Bangkok 10260 Thailand
Business Hours:
Monday – Friday: 9:00 AM – 6:00 PM
(English, Chinese, and Japanese interpreters available)