How do I register for the Treaty of Amity Benefits as an American Company?
The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand. The Treaty of Amity was signed on May 29, 1966 and secured two major trade advantages for the U.S.
- The Treaty permits American companies to maintain a majority shareholding or to wholly own its company, branch office or representative office located in Thailand.
- American companies receive national treatment, meaning U.S. firms may engage in business on the same basis as Thai companies, and are exempt from most of the restrictions on foreign investment imposed by the Alien Business Law of 1972.
Existing restrictions on American investment:
- Owning land;
- Engaging in the business of inland communication;
- Engaging in inland transportation and communication industries;
- Engaging in fiduciary functions;
- Engaging in banking involving depository functions;
- Engaging in domestic trade in indigenous agricultural products;
- Exploiting land or other natural resources
Some U.S. businesses continue to pursue joint ventures with Thai partners and permit them to have a majority stake because of their familiarity with the Thai economy and local regulations.
Application Process
Step 1: Filing Document. The applicant obtains documents verifying that the company has been registered in compliance with Thai law.
Step 2: Certification by Commercial Service (CS). Upon receipt of the preceding required documents the CS office then will certify to the Thai Department of Commercial Registration in the Ministry of Commerce that the applying business organization is an American owned and managed company and is therefore entitled to national treatment under the provisions of the Treaty.
Step 3: Application to Ministry of Commerce. After certification by the CS, original copies of all the abovementioned required documents, along with a completed application form, which may be obtained from the Department of Registration in the Thai Ministry of Commerce, must be given to the Thai Department of Commercial Registration in the Ministry of Commerce in order to fully register under the Treaty.
Note: The entire process takes about five weeks to complete.
