When it comes to company registration in Thailand, many foreigners seem to be frustrated by the restrictions placed on them by the 1999 Foreign Business Act which superseded the 1972 Alien Business Law. These acts have been put in place to protect the national interests in Thailand. While foreign investment is always welcome, the Thai Government wishes to protect national businesses and ensure that Thai entrepreneurs have the advantage in their own country. If you are coming from overseas and wish to partake in company registration in Thailand, you must allow Thai partners to have the majority share. However, this is not the case when it comes to American businesses and the Treaty of Amity and Economic Relations.
Treaty of Amity
This was signed between Thailand and the United States in 1966 and eases the restrictions placed on American businesses looking for company registration in Thailand. This treaty enables US businesses to own up to 100% of the company, far removed from the maximum 49% allocated to companies from other nations. This may not have seemed like a clever deal at the time but since then, Thailand’s economy has grown and it is now part of the huge ASEAN economy in South-East Asian. Thanks to the Treaty of Amity, American businesses can get a slice of the multi-billion dollar pie and also benefit from low start up costs.
Company Registration In Thailand Using The Treaty Of Amity
If you wish to do business in Thailand are hoping to benefit from the treaty, at least 51% of your company’s shares must be held by US citizens. Additionally at least half the directors whose signature binds the company must be Americans. Once these steps have been met, you can use a Thai legal team to expedite the process of company registration in Thailand.
The first step is to register the company at the Thai Ministry of Commerce. You must also produce documents that prove your company has registered in accordance with Thai law. Expect this process to take around 5 business days. After this, you must provide paperwork which proves that your company meets the minimum 51% American shareholder requirement. Getting past this stage normally takes just 2 business days. Finally, you need to get your legal team to submit all the necessary paperwork in order for your company to receive the alien business license. The Department of Business Development completes this step. This is the longest wait of the whole process and normally takes up to a month.
Once you have successfully completed company registration in Thailand using the details contained within the Treaty of Amity, you have a huge advantage over rival companies from different nations. While they must allow their company to be majority controlled by Thai nationals, you can have an entirely American presence in Thailand. You can effectively move your office from New York to Bangkok with the minimum of disruption and take advantage of the growing South-East Asian market. The Treaty of Amity opened the door for US companies and now it is time for you to walk through it.
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