History says that the Kingdom of Thailand has always been a constant accomplice of the United States of America in Asia. Thailand not only played an important role in supporting the security of United States during the Cold War period and after, but also encouraged and promoted friendly relations, mutually beneficial trades, and closer economic and cultural relations between them.
With the growing association and bond, the two countries finally decided to first step into a pact in 1833. Later in the year 1966, the two countries again signed the updated version of the agreement now known as “The Treaty of Amity and Economic Relations” which proved to be beneficial for both the countries and their citizens.
What is the Treaty of Amity all about?
This agreement allows American expats willing to invest or set up a business in Thailand to enjoy amazing perks like to own the majority of a Thai business without needing to obtain a Foreign Business License (FBL) while any other Non-American expats are bound to obtain a foreign business license in order to operate a foreign business in Thailand.
Here are some more major facts which every American expat should know in order to gain the maximum benefit while setting up or doing a business in Thailand:
- Thailand is the first Asian nation to have a formal diplomatic agreement with the United States.
- The two countries first signed a Treaty of Amity and Commerce on March 20, 1833.
- The Thai Foreign Business Act of 1999 discharges most of their investment and business set-up restrictions on US investing companies.
- Unlike other (country) investors, Americans can own a majority of the total shares in a Thai company.
- Any company that is registered under the Treaty of Amity is not treated as an alien company, but a Thai company.
- A company formed under this treaty must have a majority of American or Thai nationals as directors of the company.
- As a director, only an American or a Thai national can carry out the most important tasks like authorizing his/her sole signature to bind the company.
- Not less than two million baht should be invested to get the Amity Treaty status.
- A new Amity Treaty certificate is required to be obtained by the Ministry of Commerce if an existing company wants to expand its business activities under the Treaty.
- The United States is Thailand’s third-largest trading partner after Japan and China.
- The treaty is also beneficial for Thai nationals as they too receive preferential treatment if applying for a visa to conduct business in the United States.
- To end the treaty, one country needs to give the other country one year’s notification of its termination.
Despite all the benefits that the American expats enjoy under the Treaty of Amity, there are still certain business areas which are restricted for U.S. investors. Know more…
 WikipediaTags : amity treaty, doing business in Thailand, set up a business in Thailand, US thai amity treaty,