The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand commonly known as the Treaty of Amity was signed on May 29, 1968. The Treaty allows American companies to maintain a majority shareholding in a locally incorporated company, to wholly own a local company, or to open a branch office or a representative office located in Thailand.
American-owned companies/businesses receive national treatment. The American-owned companies/businesses may engage in business on the same basis as Thai companies, and are exempt from most of the restrictions on foreign investment imposed by the Foreign Business Act. Some restrictions on American investment still exist though.
The restricted businesses are:
(1) inland communication,
(2) transportation and communication industries,
(3) fiduciary functions,
(4) banking involving depository functions,
(5) domestic trade in indigenous agricultural products,
and
(6) land or other natural resources.
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In order for American-owned companies/businesses to enjoy the benefits and privileges under the Treaty, they have to apply for certification of Treaty companies/businesses. Application for certification of a Treaty company is generally done in conjunction with or after establishment of the company.
In the near future, the relevant Thai authority plans to stop taking the application for certification of a Treaty company in order for Thailand to comply with its obligation under the WTO agreements. Please check with us whether the Treaty registration is still available or not.
