Register company under U.S-Thai Treaty of Amity
United States citizens have special rights regarding establishing businesses in Thailand due to the U.S.-Thai Treaty of Amity. Under this treaty, Americans can own the majority of shares or entire companies. Americans are also exempt from some of the restrictions put on foreign investors and can operate in much of the same way as Thai-owned businesses. If you are an American citizen who is interested in doing business in Thailand, consider setting up a U.S. Treaty of Amity company.
Benefits of a U.S. Treaty of Amity Company
Many people choose to start a U.S. Treaty of Amity company because they can own the entire company or the majority of the shares. This benefit is not afforded to residents of other countries.
Business flexibility is also a benefit. This treaty allows Americans to start sole proprietorships in Thailand. This is the only way for a foreigner to operate as a sole proprietor in Thailand.
Also, investors don’t have to deal with many of the restrictions put in place regarding foreign investors. In many ways, investors are treated as Thai nationals when they start a U.S. Treaty of Amity company.
Drawbacks of Starting a U.S. Treaty of Amity Company
Before starting a U.S. Treaty of Amity company, it’s important to go over the drawbacks. The legal team at Plizz can also go over these in greater detail, so you can decide if this is right for you.
First, U.S. Treaty of Amity companies have certain restrictions. The treaty does not allow companies to engage in communications, transportation, or domestic trade of indigenous agricultural products. Companies also cannot be involved in fiduciary or depository functions related to banking.
Also, a U.S. Treaty of Amity company is essentially a foreign entity that’s been incorporated in Thailand. This prevents a U.S. Treaty of Amity company from owning land. Foreign investors who are interested in owning land will need to look at other options. Plizz can go over the options with you to help you decide the right one.
Finally, this option is only available to American investors. While this is not a drawback for Americans, those from other countries who want to invest in Thailand will need to consider another option.
There are requirements in place for opening a U.S. Treaty of Amity company. First, Americans must own at least 51 percent of the shares, although they can hold all of the shares.
If applicable, at least half of the company’s board must be American citizens. Again, the board can completely consist of Americans if desired.
There is also a minimum registered capital requirement for starting a U.S. Treaty of Amity company. If the company does not need a Foreign Business License, the minimum capital requirement is 2 million Baht. That increases to 3 million Baht per business activity if a Foreign Business License is needed. Because this is complicated, it’s wise to get legal help from Plizz before moving forward. Plizz will ensure you understand the capital requirements before registering your company.
Timeline for Starting a U.S. Treaty of Amity Company
It normally takes four to five weeks to start a U.S. Treaty of Amity company. However, a single mistake can add weeks or months to the process. Plizz ensures that the paperwork is in order and filed on time, so you don’t have to worry about delaying approval.
There are two main parts involved in starting a U.S. Treaty of Amity company. First, the company must obtain certification under the U.S. Treaty of Amenity. Then the company must register.
Obtaining Treaty of Amity Certification
There are three phases involved in obtaining certification under the Treaty of Amity.
- The company needs to file the necessary documents that show the company complies with Thai law.
- The documents are reviewed, and if the company meets the legal requirements, certification is sent to the Thai Department of Commercial Registration.
- The company completes the certification process by providing additional documentation to the Thai Ministry of Commerce.
Registering a U.S. Treaty of Amity Company
After receiving certification, the company can move forward with registration. The process followed depends on the type of company that’s being registered.
If you want to register a sole proprietorship, you must prove that you’re a United States citizen by submitting a notarized copy of your birth certificate or passport. This needs to go to the Commercial Service Office that’s located in the U.S. Embassy in Bangkok. This is the only step required to register a sole proprietorship.
The process is a bit more involved if you’re registering a partnership, branch office, limited company, or joint venture. You need to gather your articles of incorporation and bylaws, as well as an affidavit from the corporate office or manager. The affidavit must include specific details about the company, directors, shareholders, and capital. All the documents must be notarized and then sent to the U.S. Embassy in Bangkok.
The same process must be followed if the company is a subsidiary of a parent company. However, the company also needs to send the embassy documents related to the parent company.
U.S. Treaty of Amity companies that want to obtain majority ownership in a Thai company by investing and purchasing shares need to file specific paperwork, as well. The documentation must prove that the applying company is majority American-owned. It also must show that the Thai company will be majority-owned by Americans after the incorporation.
After filing the paperwork, the Commercial Service Office certifies it and sends the documents to the Thai Department of Business Development. Then the department registers the business. At that point, the company can begin doing business in Thailand.
This is a complicated process. Ensure everything goes smoothly by having Plizz handle the paperwork for you. With our help, you can get your business off the ground quickly.
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