Do You Want to Start an American Company in Thailand?

So, you think 100% foreign business ownership is not possible in Thailand? And who exactly told you that? You need to ask if he/she really knows about Thai laws. You must have heard about Amity Treaty, don’t you? The treaty is the testimony of the strong bond between America and Thailand. The US-Thai Amity Treaty was signed between the two countries on May 29, 1966. Typically, the treaty promotes trade, commerce, reciprocal legal rights and cultural understanding between the two.

Similarly, it grants 100% Thai ownership to the entrepreneurs. Let’s have a look the benefits in detail;

Benefits

• Allows American citizens 100% of the shares to companies located in Thailand
• American companies are exempted from the majority of the restrictions on foreign investment implemented by the Alien Business Law, 1972.

In order to reap these benefits your company must meet the basic requirements, which are;

• At least 51% of shares must be with the American citizens
• The majority of the board of directors must be American citizens

Once you know your eligibility make sure you get these documents ready based upon the type of your company;

• For Sole Proprietorship proof of the U.S. citizenship
• For Thai Partnership/ Thai Limited Company/ Joint Venture
• Articles of Incorporation
• An Affidavit of the Corporate Officer
• Bylaws of the company
• For application of a subsidiary to the parent company, documents pertaining to the parent company should be submitted

And now you can go ahead with the procedure of business formation in Thailand. For that you will need to go through these simple phases;

Just Three Phases to Go

Phase 1

Complete the application form in compliance with the Thai Law and submit it along with the necessary documents.

Phase 2

Upon receiving the application and documents, the CS office will hand-over certificate to the Thai Department of Commercial Registration, confirming the applicant to own an American managed company, who is now entitled to national treatment under the Thailand Treaty of Amity.

Phase 3 

Original copies of the same documents stapled with the completed application must be submitted to the Department of Commercial Registration in Thailand.

However, there are some activities that are prohibited under this treaty. They are;

• Transportation
• Communications
• Domestic Trade in agricultural products
• Exploitation of natural resources

Whether it is for legal advice or end-to-end assistance, you will need a lawyer to rely upon. In that case, you can trust us