We already spoke about the Amity Treaty in a separate article and so if you are reading this now without having read the previous article to learn a little background knowledge then it is recommended to go back and read it to learn more first so that this article makes a lot more sense. When you register a company in Thailand and are a US based citizen then you and your company may be eligible for this treaty but you need to first of all make sure that your business is actually eligible to receive this as not all types of business are allowed.
As said, the Amity Treaty can be very beneficial if you are an American citizen looking to registering a company in Thailand. According to Thai laws a business that qualifies for this treaty is actually then known as entity. An entity (a business or organisation run by US people mainly) may qualify for benefits under this treaty if they meet the required criteria first. This is done by gaining approval from the Thai Department of Commerce. The application process is quite lengthy and as you expect there are lots of documents and forms that need to be filled in and translated. Essentially though the application must specify the area of businesses or activities that the business is proposed to be engaging in as a company that will be registered in Thailand.
Probably the biggest advantage of this treaty, if an entity is eligible and approved is that it allows for the company to have the shareholders be a majority of foreigners (US citizens) instead of the custom that any business that is foreign owned and is registering in Thailand must ensure that the majority of shareholders are Thai. As ever though any company that qualifies for this treaty still cannot own land as any business that is foreign owned but does not have a majority of Thai shareholders cannot deal in this area of business. There are other areas that businesses cannot operate in regardless of whether or not they are in this treaty and such other areas include domestic trade or agricultural products. This may be because agriculture and its industry is the staple export business for Thailand to share its goods and services with the rest of the world.
As long as the company in question follows these rules and meets the requirements then being a member of this treaty has many benefits and there are obviously many perks to being able to keep the company predominantly US ran and so that is why most American citizens apply for this treaty as it makes businesses and register company in Thailand that little easier whilst also promoting goods and valuable trade services between the USA and Thailand. This is definitely not a bad thing and it would be nice if other countries (such as the UK) also had such services and agreements to promote trade between them and Thailand also. Whether or not that will come to fruition, only time will tell.