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Posts Tagged ‘USA-Thailand Treaty of Amity’

15th July 2021

As the first two weeks of the “Phuket Sandbox” scheme have elapsed, it appears that program is gaining increasing momentum in terms of tourist interest. Although the program has not been without issues as recent arrivals testing positive for COVID-19 have created situations where Alternative State Local Quarantine measures have been undertaken. That stated, the overall program seems to be proceeding smoothly and offers a glimmer of hope for the Thai tourism industry. It should be noted that the Phuket Sandbox is not reserved for tourists, it is possible for those with a non-immigrant visa to use the Phuket Sandbox as well.

Meanwhile, the island resort of Samui is reopening in a limited capacity to foreign tourists. The Samui Sandbox, or what some have dubbed the Samui corridor (due to the sealed pipeline of travelers transitioning through Bangkok), has commenced in recent days although there seems to be less than optimal demand for this program compared to its Phuket counterpart. To quote directly from a recent article titled “No foreign tourists on first day of Samui reopening” in The Nation:

Only 11 foreigners – all members of the media – will take the Bangkok Airways flight from Bangkok to Samui on Thursday, according to the Koh Samui Tourism Promotion Association. “We do not expect a lot of travellers to visit Thailand in the third quarter this year as the rise in the country’s daily Covid-19 cases would affect their confidence,” association chairman Ratchaporn Poolsawas said on Wednesday. “However, what we can do is start tourist operations in line with standard procedure in a bid to stimulate the country’s tourism.”

Clearly, demand for the Samui project is not as robust as some might hope. However, as the weeks go by the Samui program may prove to be a desired destination for future tourists. Also, it may prove to be an alternative to the Phuket Sandbox in a hypothetical situation where the Phuket program must be rolled back even though this does not appear to be a likely possibility as of the time of this writing.

While positive news abounds for Phuket and Samui, Bangkok remains under severe lockdown conditions presumably throughout the remainder of July. Restaurants cannot provide dine-in services, alcohol service of all kinds are banned, shopping malls are closed, and the city remains in a de facto state of severe lockdown. When exactly this will end remains to be seen as calls from within Thailand and in other jurisdictions are being made for a paradigm shift in the way pandemic response is undertaken with some arguing that the containment strategy is no longer viable especially in light of the devastating economic impact these measures have had and which will presumably continue should these policies continue to be enforced.

While the American Embassy in Thailand continues to provide US visa interviews and other routine services (albeit in a rather truncated manner) some have argued that the Embassy should provide vaccinations for expats Americans. As of the time of this writing, the Embassy has stated this service will not be provided and it seems unlikely this will change any time soon.

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30th July 2013

In a previous posting on this blog regarding partnerships in Thailand, Thai Ordinary Partnerships and Thai Registered Ordinary Partnerships were discussed. There is another type of partnership structure in Thailand which may be more familiar to those from Western countries: the Thai Limited Partnership. Limited Partnerships have been a method of structuring an enterprise in jurisdictions such as the United States, the United Kingdom, and the Commonwealth nations for quite some time. Meanwhile, jurisdictions in the Eurpoean Union allow for similar structures. Thailand was a relatively late jurisdiction when it came to allowing for use of such structures, but now it may be possible for promoters of a business to form this type of partnership.

A Thailand limited partnership generally consists of, at a minimum, at least one Managing Partner who manages the business and at least one Limited Partner. Depending upon the unique circumstances of a given business enterprise there could be one or more managing partners and one or more limited partners. Although managing partners are personally liable for partnership debts, limited partners are not persoally liable for partnership debts and are only personally liable for the their capital contributions, especially if said contributions have been removed, in whole or in part, or if said contributions were never submitted. It should be noted that limited partners may lose some degree of their limited liability if the limited partner engages in the managment of the partnership or allows his or her name to be used in the Limited Partnership’s legal name. Limited Partnerships in Thailand must register their partnership agreement with the Ministry of Commerce in the same manner as a Registered Ordinary Partnership. As a general rule, Limited Partnerships are taxed in much the same manner as Registered Ordinary Partnerships.

Limited Partnerships which include a foreign national may be subject to the provisions stipulated in the Foreign Business Act. Therefore, where a foreign national owns a majority interest in a Thai Limited Partnership the Partnership may need to apply for a Thai Foreign Business License. However, American Citizens wishing to structure a limited partnership in Thailand may be eligible to obtain an Amity Treaty Certificate for the partnership pursuant to the terms of the US-Thai Treaty of Amity. If a foreign national owns simply a minority interest in a Thai limited partnership as a limited partner, then the partnership may not be required to obtain a foreign business license. However, the foreign national would not be able to manage the limited partnership.

Limited partnerships are able to be converted into limited companies so long as such conversion complies with relevant Thai corporate law.

For information regarding Thai Limited Companies please see: Company Registration Thailand.

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