The US- Thai Amity Treaty provides US citizens special rights to run businesses in Thailand and also provides Thai citizens special privileges to run businesses in the USA. The treaty allows US citizens in Thailand to hold a majority of shares in companies engaging in certain business enterprises in which majority ownership is generally restricted to Thai citizens under the Foreign Business Act.

Companies with the following requirements may qualify to register under the Treaty of Amity:

• At least 51% of the company shares must be own by American citizens.
• In general, the company directors must be American citizens.

Treaty of Amity business capital requirements:

• Businesses not restricted under the Foreign Business Act must have the capital requirement of 2 million Baht for a Treaty-protected company.
• Businesses that are required to obtain a Foreign Business License under the Foreign Business Act must have the minimum capital requirement of 3 million Baht for each business activity.

The primary benefit of the Amity Treaty to US citizens in Thailand is to manage and own companies in Thailand without needing majority Thai shareholders. In other words, foreigners who are not US citizens would normally require a Thai partner holding 50% or more of the shares in the company to legally conduct business in Thailand.

The Amity Treaty provides Americans an exception to the “Thai partner” requirement that is not available to other nationalities. However, the right is limited and does not apply to all types of business activities.

Thailand BOI Incentives

The Thailand BOI incentives are classified into the following types:

• Tax Incentives

 A BOI promoted company in Thailand may be eligible to receive an exemption or reduction of import taxes duties and may also be eligible to be exempted from a juristic person’s tax and dividends, as well as double deductions from the cost of transportation, electricity, water and project’s infrastructure installation.

• Non-Tax Incentives

Local and foreign businesses certified by the Thai BOI are eligible to hire foreign skilled workers and experts. Further, the BOI provides for express non-immigrant visa and work permit processing through “One-stop Visa”. Non-tax incentives may also permit foreign freehold landownership to businesses involved in industrial related projects.

Setting up a Thai BOI Promoted Company

Investors seeking to do businesses in Thailand may apply for a Thai BOI promotion. The BOI categorizes industries according to types and provides application forms specific to each industry.  Generally, companies that are given priority for Thai BOI licensing are those involved in technology and innovation, manufacturing and export and other investments showing potential business growth.   Non-industrial businesses such as nursing homes for the aged and movie productions are also promoted by the Thai BOI with investment incentives.