29 May 1966 was a big day for Thai-American relations. It was the day that the historic Treaty of Amity and Economic Relations was signed between the United States and the Kingdom of Thailand. It gave US companies certain rights and privileges if they wanted to establish a business and made company registration in Thailand more desirable. There are two major advantages gained by US companies:

• They are allowed to hold the majority of shares of the company, representative office or branch office in Thailand, something that eludes businesses from other nations.

• They can enter business just like Thai companies and are not subject to a large proportion of the restrictive measures laid out by the 1972 Alien Business Law.

Of course, it is not all good news and company registration in Thailand is not as straight forward as it would be for an American company on home soil. There are only seven activities that are covered by the Treaty. In essence, US companies will only benefit from the Treaty of Amity if they are doing business in the following sectors:

1.Transport

2.Communications

3.Banking with depository functions

4.Ownership or exploitation of land

5.Natural resources

6.Agricultural products (domestic trade)

7.Functions of a fiduciary nature

What Are The Minimal Capital Requirements?

If you are encouraged to embark on company registration in Thailand because of the Treaty of Amity, please note that you are still subject to the Foreign Business Act’s (FBA) minimum capital requirement which stands at 2 million Thai baht for any business protected by the Treaty of Amity. In the event that you need to use the FBA for a Foreign Business License, this requirement increases to 3 million Thai baht.

Certification

If you are interested in company registration in Thailand, don’t fall into the trap of thinking the Treaty of Amity automatically applies to you. You still have to go through some legal red tape in order to gain the certification you are entitled to. This procedure involves filing documents, receiving certification from the CS office and applying to the Ministry of Commerce to be fully registered under the Treaty of Amity. Sound exhausting? Fortunately for you, there are a host of legal teams in Thailand that specialise in getting businesses through the maze of legislation behind company registration in Thailand. With their help, you can receive certification in less than 6 weeks.

Wait, There’s More!

You must also pursue another administrative process in order to prove that you have registered. The steps taken vary depending on whether your business is a sole proprietorship, a Thai partnership or a Thai Limited Company. Again, this involves lots of paperwork and a several week wait. Yet you don’t need to go through all this hassle when it comes to company registration in Thailand. If you want the advantages owed to you by the Treaty of Amity, simply contact a specialist Thai legal team. Your contribution to the process will be minimal and before you know it, you will be able to do business in Thailand.