Treaty of Amity

Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States was signed on May 29, 1966 to give special rights and benefits to American citizens who wish to establish their businesses in Thailand.

What is Treaty of Amity?

U.S. citizens who wish the establish a company in Thailand are afforded special privileges through the Treaty of Amity between the United States and the Kingdom of Thailand. Signed in 1833 and amended in 1968, the Treaty of Amity gives U.S. citizens privileges that are otherwise not granted to investors of other nationalities including being able to form a private limited company without the need for a Thai partner.

On top of being able to wholly own or hold a majority of shares in companies established under the Treaty of Amity, U.S. citizens are also exempted from restrictions levied on those establishing a regular private limited company. For the most part, Treaty of Amity companies are treated much in the same way as local companies, meaning they are able to engage in the same activities as regular Thai companies save for restricted sectors such as communications and fiduciary services. Moreover, they are not subject to the same limitations and processes as other companies established by foreign nationals.

Who is Eligible for Treaty of Amity?

American sole Proprietorship

U.S. citizen by birth or naturalization

An U.S. Company acquiring

Thai Company, Partnership, Branch Office,
Joint Venture, or Limited Company –
U.S. citizen by birth or naturalization

Thai Company with Majority of
American shareholders

U.S. citizen by birth or naturalization.

Minimum Capital Requirements

Although treaty-protected companies are given advantage treatment under US-Thai Amity Treaty, they still need to satisfy the minimum capital requirement under the Foreign ฺBusiness Act (FBA).

2 million

3 million

Minimum Capital Requirements

The company’s board of directors must consist of a Thai or U.S. majority; although if a member of the board is of any other nationality, they have the option of co-signing with a U.S. or a Thai director

3 million

2 million

Procedures to obtain Treaty of Amity certification

Limitations

Despite the Treaty of Amity’s privileges, companies established under this scheme are still subject to several limitations. Most notably, companies under the Treaty are not permitted to buy or own land in the Kingdom and are likewise unable to exploit natural resources. Engaging in banking activities involving depository functions and fiduciary services are also restricted, as are ventures into inland transportation, communications, media, and trading indigenous agricultural products.