An Amity Treaty LLC in Thailand can be 100% foreign-owned and can have exemptions from most restrictions on foreign investment. It is according to the Alien Business Law, 1972. But there are some myths about this type of business entity. Let find out the actual facts;
- Amity Treaty Limited Liability Company can be set up by American nationals only. For your information, the Amity Treaty is an agreement between Thailand and the USA since May 29, 1966. It aims to promote trade, commerce, reciprocal legal rights and cultural understanding between the countries.
- Not every American company can claim the benefits of Amity Treaty LLC. A company that wants to apply for the Amity Treaty Certification should comply with the following points;
- Register as an Alien Company
- Upon recognizing a foreign company, the government grants 100% ownership
- Apply for a Certificate at the US Embassy
- Apply to the Director of Ministry of Commerce for Approval
- There are 3 conditions here;
- The US national shareholder must hold more than 50% of shares
- No director from any third country
- In the case of a sole proprietorship, the director can be either a Thai national or a US national
Restrictions on Amity Treaty in Thailand
3. American companies cannot engage in all sorts of businesses even though they obtain the certification. Following are such activities;
- Publishing and media
- Farming
- Forestry
- Fisheries
- Thai herb
- Selling of ancient Thai heritage
- Selling and owning land
- Building/moulding of Buddha’s statue
- National security (armoury, transportation) and tourism business.
- An Amity Treaty LLC still continues to be a foreign entity in Thailand. Therefore, it will not be eligible to own land in Thailand.
- Similarly, an Amity Treaty LLC will still be requiring a minimum capital that is 3 Million Baht.
Write to us [email protected] if you need to know more about Amity Treaty LLC. There are various methods of registering your company under the Amity Treaty, so you need proper counsel to do the needful.
