To know whether you will need a Work Permit for Amity Treaty Company in Thailand, you must know about the treaty relations. American individuals and businesses are allowed to own majority (more than 51%) shares of a Thai Limited Corporation through a US Treaty of Amity Company. The US Treaty of Amity also allowed American businesses to operate on the same terms as Thai businesses and exempted them from the majority of the foreign investment limitations set by the Alien Business Law of 1972.
The Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States of America, often known as the US-Thai Treaty of Amity, was signed on May 29, 1966, to grant special rights and privileges to American residents who sought to open enterprises in Thailand.
While having a huge advantage over other foreign individuals or businesses, US Amity Treaty Companies are not permitted to engage in the following activities, which are only permitted for businesses with majority Thai owners.
- Communications
- Transportation
- Fiduciary functions
- Banking involving depository functions
- Land Ownership, Exploitation of land, or
- Other natural resources; and
- Domestic trade in indigenous agricultural products.
Do You Need a Work Permit for Amity Treaty Company in Thailand?
The 4 Thais to 1 Foreign Worker (Work Permit) rule does not exempt US Amity Treaty companies. Employing four Thai nationals, covering their Social Security costs, VAT registration, and having at least THB 2 million in registered capital are all mandatory. Additionally, for a US Amity Treaty company to sponsor employees, a Non-B Visa and a Work Permit is also necessary.
The registered capital is two million Baht. Additionally, you only need two Thai employees if you already have a one-year extension based on marriage.
Therefore, your thought that the US-Thai Amity Treaty company can enjoy a Work Permit exemption is completely wrong!
Are you planning to start a US-Thai Amity Treaty Company in Thailand?
Please note down the following basic requirements:
- American citizens or an American sole proprietorship, partnership, representative office, branch office, joint venture, or limited company must hold at least 51% of the shares.
- At least half of the directors must be Americans.
- The company’s ultimate beneficiary must be an American.
Matters may be different in your case. It is because, whenever a Treaty or Bilateral Trade Agreement guides a company registration procedure, it becomes very case-sensitive. The same is applicable for Double Tax treaties. Therefore, you must seek professional guidance in this regard before you expedite your US-Thai Amity Treaty Company registration process. A reliable corporate law firm in Thailand can guide you best on your need for a work permit for Amity Treaty company in Thailand.
Feel free to seek our free email consultation at [email protected]. Get in touch with our team of corporate law professionals will assist you thoroughly in the process. In this regard, our scope of services, although not limited to, includes the following:
