Company set up in Thailand continues to grow due to the outstanding opportunities that Thailand has to offer to foreigners around the world. Whether it's a Thai business or Foreign Business, there has been a surge of business being built here in the country. For Americans, there is the US- Treaty of Amity that allows US citizens the right and benefit to establish their business here in Thailand.
In 1966, the Treat of Amity and Economic Relationships between Thailand and the United States of America was made for US investors to be able to run their business in Thailand, whether its a corporation or individuals. This holds a strong advantage as this allows Americans to have the majority of shares of the whole company rather than respecting the laws of 51/49 ratios and such. Additionally, American companies have the ability to run the company on the same basis as Thai companies.
The only requirements that are needed for American investors to be able to engage in business activities in Thailand are to follow a percentage of shares as shown below:
- Minimum of 51% shares must be owned by US citizen
- Minimum of 50% of directors must be owned by US citizen
In regards to restrictions, American investors are prohibited from conducting activities from this list:
- Fiduciary functions
- Banking involving depository functions
- Land Ownership
- Exploitation of Land
- Other natural resources
- Domestic trade in indigenous agricultural products.
Similar to Thai businesses in the country, you will still need to reach a minimum capital requirement that is under the Foreign Business Act. If your business is known not to be restricted under the FBA, then you will have to respect the capital requirement of 2 million THB. However, if you are required to get a Foreign Business License under the FBA, then the respected minimum capital requirement will be 3 million THB.
One thing that you will need to note about registering a company under the Treaty of Amity is that the process itself can take longer and can be more expensive compared to registering a Thai or Foreign business. Companies under the Treaty of Amity also operate under the FBL which could mean that your company will be examined closely in comparison to Thai majority companies.
Pimaccounting is a one-stop accounting firm for accounting services that have expertise in company registration and set up for companies under the Treaty of Amity for US citizens. For more information on Pimaccounting, you can head to our about page to understand more about the process. You can also head to our contact us page to get in touch with one of our accountants so that we can assist you further.