Integrity Legal

Issues surrounding the decline in tourism have been of increasing concern in Thailand over the past months. Many factors seem to be at play when discussing the issue of the tourism downturn in Thailand. For instance, fallout from the US-China Trade War may be playing an integral role in the declining number of tourists coming to Thailand since the slowing of the Chinese economy has knock-on effects regionally. Specifically, the decreased purchasing power of Chinese consumers is causing a decrease in demand for travel packages to Thailand.

The China-specific issues notwithstanding, many have pointed to the increasing strength of the Thai baht as a cause of concern. Budget conscious travelers to Thailand are being put off by the relative increase in cost to travel to the Kingdom as a result of the appreciating local currency.

Finally, some of the decreasing tourist numbers could be attributed to the increasingly stringent immigration policies being placed upon ostensible tourists. In the past, there were a number of individuals who opted to live in Thailand utilizing tourist visas or 30 day stamps. These individuals who have been tabulated as “tourists” in the immigration records, but the reality was that these people were using such visas to live in the Kingdom. New enforcement measures have been put in place and new policies promulgated which are designed to discourage such behavior. For example, where once overstay in Thailand was considered a rather trivial offense which resulted in a relatively nominal fine, especially for those who overstayed their visa for a prolonged period. Now overstay can result in deportation and a prolonged registration on the Thailand Blacklist. Meanwhile, Immigration officers at border checkpoints have been turning away prospective entrants to Thailand if they are using multiple 30 day stamps in one year or are attempting to remain for a prolonged period of time in the Kingdom on single entry or multiple entry tourist visas.

Notwithstanding the above issues, Thailand remains one of the best jurisdictions in Southeast Asia to do business. Proof of the increased interest in Thailand is the fact that Foreign Direct Investment in Thailand has increased by over 200% in 2018. This increase in FDI may be attributed to the fact that the benefits which can be accorded to companies looking to do business in Thailand under the Board of Investment (BOI) are substantial and can even include prolonged tax holidays. Meanwhile, Thailand boasts the best infrastructure in the region and Bangkok has seen tremendous real estate growth as well as infrastructural improvement including, but not limited to, the expansion of the rail system within the city. High speed rail systems are likely to be brought online in coming years as well. Clearly, although Thailand is seeing some decline in terms of tourism it is increasingly apparent that business travelers and investors are choosing the Kingdom to conduct business.

It should be noted that along with all of the above developments, Thailand remains arguably the best jurisdiction for Americans doing business in the region as Americans can enjoy the benefits of the US-Thai Treaty of Amity. This agreement allows Americans citizens and American companies “national treatment” when doing business in the Kingdom thereby permitting 100% ownership of American enterprises operating in Thailand. This coupled with Thailand’s infrastructure and business environment makes Thailand an especially welcoming destination for American investment.

Tags: Amity Company, Amity Treaty, Amity Treaty Company, blacklist, Board of Investment, BOI, deportation, Deported, National Treatment, overstay, tax holiday, Thai Tourist Visa, Thailand 30 day stamp, Thailand Blacklist, Treaty of Amity, US-China Trade War, US-Thai Amity Treaty, US-Thai Treaty of Amity, Visa Exemption
Posted in Thailand Business | No Comments »

In recent months, the rules upon which the regime for issuing and maintaining Thai work permits and visas have been undergoing some changes. However, the permanence of these changes remains to be seen and the practical implications of these changes are also open to speculation. Hopefully the following posting with provide some clarification with respect to where work permit and visa rules currently stand.

Work Permit Restrictions Appear to be Loosened

Since the promulgation of the Emergency decrees regarding work permits in Thailand analysts seem increasingly convinced that regulations regarding time, place, and manner of work in Thailand have loosened. In the past, Thai work permit regulations (and the enforcement agencies associated therewith) viewed the rules very strictly when it came to the specific locations where foreigners could undertake labor, the specific functions foreigners could perform, and the timing of when a foreign worker could begin working. For example, foreign temporary workers had to await issuance of a work permit book or temporary work document in order to begin working. Meanwhile, those issued with long term work permits were at one time restricted to performing their job only within the premises of the business acting as the work permit sponsor. Later, the geographic scope of labor endeavor was expanded to allow foreigners to undertake work throughout a specific province in Thailand. However, under any circumstances the foreign national with work authorization had to be circumspect in their endeavors as the work activities they undertook had to fall within the boundaries of the job description specified within the provisions of the work permit itself.

Pursuant to the provisions of the second emergency decree regarding the management of foreign workers in Thailand it appears that many of the restrictions regarding geographic scope of activity have been lifted. Meanwhile, the strict scrutiny of job functions appears to be a thing of the past as well (although a list of occupations restricted to Thai nationals is still in force so long as the activity in question is not specifically in violation of that list the foreign worker should be free from sanction). Furthermore, it appears that certain temporary workers who are brought into Thailand for a short period of time may be able to perform their function in a much more immediate manner compared to the past as, depending upon circumstances and subject to the aforementioned list of restricted activity, many workers may be able to immediately begin performing their functions.

The Return of the One Year Multiple Entry Visa?

It would seem that there is another possible change to Thai regulations regarding work authorization and business visas in Thailand. Apparently, regulations now stipulate that some of those working for a foreign company in Thailand (such as a Representative Office) are no longer required to obtain a work permit. This new exemption apparently only extends to Directors of such organizations. Furthermore, it appears that so-called Amity Treaty Companies (those corporations certified as American and therefore accorded protections pursuant to the US-Thai Treaty of Amity) are now subject to such exemption. Under such circumstances the directors of such companies are able to apply for a 1 year multiple entry visa from their country of origin. As of the time of this writing, this blogger has yet to personally deal with a matter arising under these new rule changes, but the creation of new immigration options is always noteworthy. It should be noted that these regulatory changes appear to be exclusive to Labor matters. Thai immigration regulations have not changed with respect to the rules regarding visa extension in the Kingdom. At the present time a work permit appears to still be required for those wishing to remain in the Kingdom long term via a Thai business visa extension application.

Tags: Alien Workers Act 2008, Amity Company, Amity Treaty, business visa, Non-Thais Working Management Emergency Decree, Non-Thais Working Management Emergency Decree 1, Non-Thais Working Management Emergency Decree 2, Thai Business Visa, Thai Visa, Thai Visa Extension, Thai Work Permit, Thailand B Visa, Thailand Business Visa, Thailand Treaty of Amity, Thailand visa extension, Thailand Work Permit, Thailand Work Visa, Treaty of Amity, Treaty of Amity Company, US-Thai Treaty of Amity, work permit Thailand, Work Visa Thailand
Posted in Amity Treaty, Thailand Business, Thailand Visa, Thailand Work Permit | No Comments »

In a recent article in the Bangkok Post it was reported that the current government in Thailand is taking measures to foster growth for small to medium sized enterprises (SMEs) in Thailand. It would appear that the present government is eager to provide encouragement for small and medium sized businesses in Thailand. Furthermore it seems as though Thai officials are attempting to position the country as a location of choice for small business start-ups within the greater framework of the Association of Southeast Asian Nations (ASEAN) and the ASEAN Economic Community (AEC). However, of particular interest to this blogger was the mention of possible rule changes with regard to Thai corporate regulations pertaining to Thai Company registration and the shareholdings thereof. To quote the aforementioned article directly:

Mr Pongpun said the authorities were improving regulations on the incorporation of private companies to allow the incorporation of a juristic person registered by only one person.

At present, corporations (also referred to as juristic persons) in Thailand must have a minimum of three (3) shareholders in order to incorporate under Thai law. It should be noted that prior to an amendment to Thai corporate law at approximately the turn of the century it was required that all companies registered in Thailand have a minimum of 7 shareholders in order to incorporate pursuant to Thai law. Many at the time felt that the 7 shareholders requirement was too cumbersome and for that reason the statutorily required number of shareholders was reduced to 3. Since then, there have been those who have noted their belief that allowing Thai corporate structures with only one shareholder would bring Thai corporate law more in line with similar bodies of law globally. For example, in many American jurisdictions Limited Liability Companies or LLCs are only required to have one member/shareholder, while similar Limited Company (Ltd.) structures are allowed in Britain and the Commonwealth nations and many European jurisdictions allow for similar corporate structures as well.

It remains to be seen whether Thai corporate law will be amended to allow for single shareholder corporations in Thailand. It is a good sign that such structures are being considered by Thai officials especially since such structures would be especially beneficial to small business owners in Thailand. Of special note to American readers, pursuant to the provisions of the US-Thai Treaty of Amity it is possible for American Citizens to own 100% of an Amity company registered in Thailand. Should the aforementioned changes take place it could result in Americans being able to own their small business singularly without any Thai shareholders.

Tags: Amity Company, Amity Treaty Company, Business Registration Thailand, Company Registration Thailand, juristic person Thailand, Limited Company Thailand, Limited Liability Company Thailand, LLC Thailand, Ltd., Small Medium Sized Business, SME, Thai Business Registration, Thai Company, Thai Company Registration, Thai Corporate Law, Thai juristic person, Thai Limited Company, Thai Limited Liability Company, Thai LLC, Thai SMEs, Thailand Amity Company, Thailand Business Registration, Thailand company, Thailand company registration, Thailand Corporate Law, Thailand juristic person, Thailand limited company, Thailand SMEs, Treaty of Amity, US-Thai Treaty of Amity
Posted in Amity Treaty, Thailand Business, Thailand company, Thailand Legal News | No Comments »

Many people living in Thailand establish corporate entities in order to conduct business in the Kingdom. This is no different for foreign nationals wishing to do business in Thailand. In the past, it was relatively easy for foreign nationals to set-up a Thai company. However, over the years the rules regarding corporate formation have grown increasingly complex as the business environment has evolved. At the same time, Thai officials have implemented policies which foster foreign investment (most notably recent regulations which have decreased the Thai corporate tax rate from 23% to 20%). All of these issues gain a new complexion when one considers the fact that as Thai laws regarding corporations have developed so too have the agreements creating the infrastructure which underlies the Association of Southeast Asian Nations (ASEAN).

In the past, Thai authorities did not, in general, heavily scrutinize Thai companies with all Thai shareholders, even such entities having a foreign director. In fact, there was a time when simply maintaining a majority of Thai shareholders provided a degree of protection against substantial official examination. Thai partnerships (both limited and ordinary) were also somewhat immune from significant governmental oversight even where a foreign partner controlled a stake the firm. However, it should be noted that pursuant to the provisions of the Thai Foreign Business Act virtually all Thai business entities with a foreign majority ownership structure have been required to obtain either a Foreign Business License, a Treaty Certificate pursuant to the provisions of the US-Thai Treaty of Amity, or some other form of documentation showing either licensure from the Ministry of Commerce pursuant to Thai law or exemption based upon a Free Trade Agreement.

As of January 2013, a new policy regarding newly established Thai companies came into effect. Thai companies with any foreign directors must now prove that the registered capital has been paid into the company by the relevant shareholders. This is even the case where the company is wholly owned by Thai nationals. Furthermore, where a foreign national maintains 50% (or more) interest in a Thai partnership evidence must be provided showing paid up capital in the enterprise. Registered capital has always been an issue for Thai authorities, but it would now appear that the rules regarding registered capital will be applied more stringently especially where there is a foreign director or partner involved in the Thai company or partnership.

As the ASEAN Economic Community (AEC) is set to come into existence in 2015 and based upon the fact that Thailand has signed various international agreements pertaining to international trade and foreign direct investment there are some who argue that the time is quickly coming when Thai regulation of foreign run businesses will be liberalized. Until that time comes, the rules imposed upon foreigners setting up businesses in Thailand are likely to be more strictly enforced compared to times past.

For related information please see: Thailand Business Registration.

Tags: Amity Treaty, Amity Treaty Company, ASEAN, ASsociation of Southeast ASian Nations, Business Registration Thailand, Registered Capital, Thai Business Incorporation, Thai Company, Thai Limited Partnership, Thai Partnerhip, Thailand Business, Thailand Business Incorporation, Thailand Business Registration, Thailand company, Thailand company registration, Thailand Limited Partnership, Thailand Partnership, Treaty of Amity, US-Thai Treaty of Amity
Posted in Amity Treaty, ASEAN Business, Thailand Business, Thailand company | No Comments »

Recently, the Foreign Minister of the Kingdom of Thailand visited the United States of America and was welcomed by the American Secretary of State. Some of the remarks made in a press conference may be notable to those interested in American foreign policy and the relationship between the United States and Thailand. To quote directly from remarks made by Secretary of State John Kerry in a recent State Department press release:

I want to thank our friends in Thailand, who represent the longest security relationship, the longest partner that we have in Asia – 180 years of a treaty relationship with Thailand. They are our partner in the largest multinational field exercise that takes place in the region.

The Treaty noted above is the Treaty of Amity and Economic Relations Between the Kingdom of Thailand and the United States of America (sometimes colloquially referred to as the US-Thai Treaty of Amity). This Treaty could be viewed as an update of previous Treaty agreements made prior to the Amity Treaty’s ratification in 1966. The Treaty of Amity represents one of the best sources of legal protection for American Citizens and American Companies conducting business in Thailand as it provides “National Treatment” to American companies in Thailand. So long as American companies (or American owned Thai Companies) receive certification from the Thai Ministry of Commerce, they arre permitted to legally operate in Thailand notwithstanding the provisions of the Thai Foreign Business Act. There are some restrictions on the business activities which an Amity Company may undertake, but overall the Treaty is a significant boon to American businesses operating in Thailand.

The Treaty not only symbolizes strong Thai-American relations in the commercial sphere, it also is seen as a symbol of America’s long standing diplomatic and security relationship with the Kingdom of Thailand, as Secretary Kerry noted in the aforementioned quote. Thai Foreign Minister Dr. Surapong Tovichakchaikul also commented upon the close relationship between Thailand and the United States, citing a relatively recent visit to the Kingdom of Thailand by President Obama:

Last November, President Obama visited Thailand as his first stop in Southeast Asia after his reelection. His visit served to strengthen our strong partnership. My meeting with Secretary Kerry today will be a good chance to continue dialogue on our future partnership, especially as we mark 180 years of Thai-U.S. diplomatic relations this year.

Those wishing to read this press release in detail are encouraged to click HERE.

As the prospect of an integrated ASEAN Economic Community draws near, it stands to reason that the United States and Thailand will continue to maintain their close relations as Thailand will likely prove to be a significant participant in the pan-ASEAN economic bloc. This important role for Thailand within the ASEAN framework could also prove beneficial to American business in Thailand. Only time will tell.

Tags: AEC, Amity Company, Amity Treaty, ASEAN, ASEAN Economic Community, National Treatment, Secretary of State John Kerry, Thai Foreign Business Act, Thai Foreign Minister Dr. Surapong Tovichakchaikul, Thai Ministry of Commerce, Thai-U.S. diplomatic relations, Thailand company, Treaty of Amity, US-Thai Treaty of Amity
Posted in American Business, Amity Treaty, News, Thailand Business, Thailand company, US State Department | No Comments »

Those researching business and corporate entities in Thailand (sometimes referred to as Thai juristic persons) often come upon information pertaining to Thai partnerships. Partnerships in the Kingdom of Thailand are different from Thai limited companies and Thai sole proprietorships for a number of reasons. For example, Thai limited companies provide the shareholders with limited liability. This means that liabilities incurred by a Thai limited company do not generally flow through to the individual shareholders (that said, under some circumstances, directors of Thai companies may have some legal liability to the company itself). Depending upon the type of Thai partnership, the partners may or may not have limited liability. Thai Partnerships differ from Thai Sole Proprietorships for a number of reasons, but the most obvious difference is that Thai Sole Proprietorships, as the name suggests, are operated by one natural person.

In the Kingdom of Thailand, there are different types of partnerships: Thai Ordinary Partnerships, Thai Registered Ordinary Partnerships, and Thai Limited Partnerships. In this posting only ordinary partnerships and registered ordinary partnerships will be discussed as Thai limited partnerships will be discussed in a later posting.

Thai Ordinary Partnerships

Thai ordinary partnerships are sometimes referred to as unregistered partnerships. The name “unregistered partnership” may stem from the fact that Thai ordinary partnerships are not required to have a written partnership agreement and even where a written partnership agreement exists it is not required that the aforementioned agreement be registered. That being stated, ordinary partnerships are still required to register their existence as a business entity with the Thai Ministry of Commerce. However, notwithstanding the fact that an ordinary partnership has registered with the Ministry of Commerce, this type of registration should not be construed to mean that the partnership is a Thai registered ordinary partnership. All partners in a Thai ordinary partnership have unlimited liability for the acts of any of the other partners which occur in the course of the partnership’s business. Creditors of an ordinary partnership may make claims against the property of any of the partners and do not need to first make a claim against the assets of the partnership.

Thai Registered Ordinary Partnerships

Thai Registered Ordinary Partnerships must be registered with the Ministry of Commerce in the Kingdom of Thailand. When registering this type of partnership a copy of the written partnership agreement, information regarding capital contributions as well as managerial duties of the partners, and objectives of the partnership must be included in the application for registration. In the eyes of Thai law, a registered ordinary partership is viewed as a distinct entity separate and apart from the partners. However, the legal distinction between the registered ordinary partnership and the partners as individuals should not be construed to mean that the partners have limited liability. That stated, if a claim is to be made by a creditor against a Registered Ordinary Parntership, then the creditor must first seek to make their claim against the assets of the Registered Ordinary Partnership before making a claim against either of the individual partner’s assets.

There are significant differences in the way in which registered ordinary partnerships and ordinary partnerships are taxed in the Kingdom of Thailand. Therefore, those interested in establishing either of these types of partnerships are encouraged to contact a legal professional in Thailand to ascertain whether either of these types of structures are suitable.

It should also be noted that foreign nationals wishing to set-up a Thai Registered Ordinary Partnership or a Thai Ordinary Partnership may be barred from doing so pursuant to the provisions of the Thai Foreign Business Act. In some cases, a Thai Foreign Business License may be obtained depending upon the type of business the foreign nationals wish to undertake through use of a Thai partnership. American citizens wishing to set-up a Thai partnership (either a registered ordinary partnership or simply an ordinary partnership) may obtain certification for their proposed partnership pursuant to the terms of the US-Thai Treaty of Amity, provided that the proposed business activity is not restricted under the terms of the Treaty; and, upon being approved for a Treaty certificate, operate their partnership notwithstanding the provisions of the Foreign Business Act.

For related information please see: Thailand Company Registration.

Tags: Amity Treaty Certificate, Company Registration Thailand, Company Thailand, Foreign Business Act, Foreign Business Act Thailand, Ordinary Partnership, Registered Ordinary Partnership, Sole Proprietorship Thailand, Thai Company Registration, Thai Foreign Business Act, Thai Limited Company, Thai Limited Partnership, Thai Ordinary Partnership, Thai Registered Ordinary Partnership, Thai Sole Proprietorship, Thai unregistered partnership, Thailand company registration, Thailand Foreign Business Act, Thailand limited company, Thailand Limited Partnership, Thailand Ordinary Partnership, Thailand Registered Ordinary Partnership, Thailand Sole Proprietorship, Thailand unregistered partnership, Treaty of Amity, United States Thailand Treaty of Amity, unregistered partnership, US-Thai Treaty of Amity
Posted in Thailand Business | No Comments »

Limited Companies in the Kingdom of Thailand

Thai Limited Companies are somewhat similar to limited liability companies in jurisdictions such as the United States, the United Kingdom, or the European Union. However, there are certain formalities which must be adhered to in order to be certain that a Thai company is properly registered. First, a name for the company must be reserved and approved by the Thai Ministry of Commerce and then three shareholders must be utilized in order to meet the requirements for Thai company registration. Meanwhile, depending upon the type of business or the presence of possible future foreign employees certain capital requirements must be met (those wishing to register a Thai Limited Company are encouraged to ascertain the exact amount of capital necessary for a certain type of business before taking steps toward registration). Foreign nationals wishing to register a company in Thailand should note that some types of business are restricted under the provisions of the Foreign Business Act. It should be noted that usage of Thai nominee shareholders to hold shares of a Thai limited company on a foreign national’s behalf solely for the purpose of avoiding conflict with the provisions of the Foreign Business Act is strictly prohibited. American Citizens wishing to register a Thai company or American Companies wishing to set-up corporate offices in Thailand may be eligible to receive certification under the provisions of the US-Thai Treaty of Amity and therefore be in compliance with the Foreign Business Act and other applicable Thai law as companies with Treaty of Amity certification are accorded “National Treatment”.

An issue that may be of interest to those weighing the option of registering a company in Thailand: the corporate tax rate  for small companies making over one million baht per year has been reduced from 23% to 20% as of 2013, according to the official wesite of the Revenue Department in Thailand.

Sole Proprietorships in the Kingdom of Thailand

A sole proprietorship is defined as a business enterprise in which one natural person is the owner. It should be noted that sole proprietorships, unlike Thai limited companies or Thai limited partnerships, provide no limited liability to the owner and therefore the owner’s liability with respect to those conducting business with the sole proprietorship is unlimited.  There are some possible tax benefits arising from operating a sole proprietorship since the sole proprietor may be taxed progressively in much the same way as a natural person. In certain cases, a sole proprietor could opt to be taxed based upon gross receipts, minus a standardized deduction. However, those interested in this type of structure are well advised to contact professionals in order to ascertain further information about whether this type of structure can be utilized for one’s proposed business and the possible tax liabilities of such a proposition.

It should be noted that a sole proprietorship may not be feasible for most foreign nationals wishing to conduct business in Thailand pursuant to the provisions of the Foreign Business Act. It may be possible to obtain a foreign business license for a sole proprietorship in Thailand and thereby maintain compliance with the Foreign Business Act, but such licenses are examined on a case by case basis based upon the type of activity the sole proprietor wishes to conduct. For American Citizens it may be possible to obtain certification for a Thai sole proprietorship pursuant to the provisions of the US-Thai Treaty of Amity.

For related information please see: Thailand Company.

Tags: Amity Certification Thailand, Amity Company Thailand, company in Thailand, Corporate Income Tax Thailand, Corporate Tax Rate Thailand, Foreign Business Act, Foreign Business Act Thailand, Limited Liability Company, Sole Proprietorship, Thai Corporate Tax, Thai Limited Company, Thailand company, Treaty of Amity, US-Thai Treaty of Amity
Posted in Thailand Business | No Comments »

For regular readers of this blog, it is probably no surprise that some of the most recent USCIS Service Center processing time estimates are being put up as a courtesy to readers and the immigrant community at large. However, we have begun adding other visa category processing time estimates as there may be those in Thailand interested in either the L1 visa for intracompany transferees or the E2 visa for those trading in the United States under the US-Thai Treaty of Amity.

The following are the processing time estimates from the California Service Center as of January 31, 2010:

The following are the processing time estimates for the Vermont Service Center as of January 31, 2010:

Please note that these estimates are for USCIS processing only and do not include processing time for an application at the National Visa Center or at the US Embassy or US Consulate that will ultimately adjudicate a foreign national’s visa application. Please be advised that recent changes implemented by NVC may have a dramatic impact upon the overal K3 Visa process, but these policies should not effect the processing of a K1 visa.

For information about assisting a loved one with US visa obtainment please see: Thai Girlfriend Visa.

Tags: Amity Treaty, CR1 Visa, E2 Visa, E2 Visa Thailand, I-129f, I-130, IR1 Visa, K1 Visa, K1 Visa Thailand, K3 Visa, K3 Visa Thailand, L1 Visa, L1 Visa Thailand, Thai Girlfriend Visa, Treaty of Amity, US-Thai Treaty of Amity
Posted in Amity Treaty, CR1 Visa, Fiance Visa Thailand, IR1 Visa, K-3 Visa Thailand, K1 Visa, K1 Visa Thailand, K2 Visa, K2 Visa Thailand, K3 Visa, L1 Visa, National Visa Center, US Consulate Chiang Mai, US Consulate Singapore, us embassy bangkok, US Embassy Burma, US Embassy Cambodia, US Embassy Hanoi, US Embassy India, US Embassy Indonesia, US Embassy Jakarta, US Embassy Kathmandu, US Embassy Kuala Lumpur, US Embassy Malaysia, US Embassy Myanmar, US Embassy Nepal, US Embassy New Dehli, US Embassy Phnom Phen, US Embassy Rangoon, US Embassy Singapore, US Embassy Thailand, US Embassy Vietnam, US Embassy Yangon, US Visa and Immigration, US Visa Thailand, USCIS | 9 Comments »

Thailand has become a major epicenter of trade in Southeast Asia. The Kingdom also remains one of the most important trading partners of the United States of America, the European Union, and the United Kingdom. Many businesspeople who do business in Thailand must deal with restrictions imposed upon foreigners under the Thai Foreign Business Act. American Citizens enjoy some benefits under the provisions of the US-Thai Amity Treaty. This Treaty was promulgated in the mid-60′s. In Thailand, Treaties are considered the “law of the land,” and are considered superior to locally drafted legislation (this notion is similar to many of the ideas codified in the American Constitution, specifically the Supremacy Clause).  As the Amity Treaty is the “law of the land,” it supersedes the Foreign Business Act.

A Thai Limited Company certified under the provisions of the Treaty of Amity is a good vehicle for conducting business in Thailand, but the Treaty does have caveats and Companies conducting certain types of business cannot obtain Treaty Certification. Most importantly for some, Amity Treaty Companies cannot own land. Even though an Amity Company is accorded “National Treatment,” the company is barred from holding property in the form of Thai Real Estate. Although, technically it may be possible for an Amity company to purchase a Condo in Thailand.

Aside from ownership of Thai property, there are other activities which an Amity Company cannot engage in, such as: Inland Transportation, Communications, Fiduciary Functions, and the Practice of Professions. Each of these types of activity are reserved to Thai nationals and/or Thai Companies. Even still, the Amity Treaty provides American Citizens with the opportunity to own virtually 100% of a Thai company. For many types of businesses the Amity Treaty is a perfect solution to the problems imposed upon foreigners by the Foreign Business Act.

Some have postulated regarding the possibility of using American Citizens as nominees in order to obtain Amity Treaty benefits. This is basically impossible as nominee shareholders are illegal under current Thai law. That being said, delineating whether or not an American Company is “American,” could be difficult. The relevant agencies of the Thai Ministry of Commerce adjudicate Amity Treaty Certification applications on a case by case basis and come to a decision based upon the makeup of the corporate shareholders in question.

An Amity Treaty Certificate is somewhat similar to a Foreign Business License. However, the two documents are issued based upon different legal foundations. There are some US Immigration benefits accorded to Thai nationals under the US-Thai Treaty of Amity in the form of E visas, but there is not a direct counterpart found under Thai Immigration law.

Tags: Amity Treaty, Amity Treaty Company, Thai Company, Thai Limited Company, Thailand company, Thailand limited company, Treaty of Amity, Treaty of Amity Company, US-Thai Amity Treaty, US-Thai Treaty of Amity
Posted in General Legal Information, Thailand Business, Thailand company, Thailand Condo, Thailand Property, Thailand Real Estate, US Visa and Immigration | 5 Comments »

The E2 visa is a special non-immigrant visa available to prospective investors who are also citizens of countries with a trade or commercial treaty with the United States of America. Citizens of the Kingdom of Thailand can apply for E2 visa status as the United States and the Kingdom of Thailand, at the time of this writing, maintain a Treaty of Amity and Commerce.

In order to qualify for an E2 visa the applicant must invest a “substantial amount” of money into the American economy in the form of a business venture. Although not specifically defined in the statutes or treaties, the term “substantial amount” has been largely left to be determined by the Consular officers posted at the US Embassy or Consulate where the visa application is being submitted. Although information regarding the necessary amount of money varies, a minimum investment of at least one hundred thousand dollars should be available for investment before a prospective applicant should contemplate submitting an application. That being said, the investment will be viewed in relation to the overall enterprise. As a result, a one hundred thousand dollar investment may be viewed as substantial if one is setting up a small restaurant in a region with a relatively low cost of living. However, that same amount of money will probably not be viewed as “substantial” if one is seeking to undertake the construction of a shopping mall in a heavily urban area. The United States Citizenship and Immigration Service utilizes an ‘Inverted Sliding Scale’ in order to make determinations as to whether or not the underlying investment should be considered “substantial” in relation to the total cost of the economic endeavor.

Another issue that must be considered when discussing the E2 visa is the fact that the business investment ought to create employment opportunities for American Citizens. Although it is probably more desirable to hire American workers before the submission of the E2 application. Providing evidence that employment opportunities will come about in the reasonably foreseeable  future is usually sufficient for approval of at least the initial application.
Another visa category that is generally of interest to those researching the E2 is the L1 visa. The L1 visa is a non-immigrant visa category that employs the dual intent doctrine to allow foreign employees of an international company to transfer to a US-based affiliate for the purpose of carrying out business activity in the United States. In some cases, an already established foreign corporation will wish to establish a presence in the United States. In order to staff the new company, foreign managers and executives will need travel documents to travel and work in the United States.

For related information please see our page on the establishment of an Amity Treaty Company

Tags: American Visa, Amity Treaty Company, E 2 Visa, E2 Visa, L1 Visa, Treaty of Amity, us embassy bangkok, us embassy thailand, US Visa Thailand
Posted in General Legal Information, Legal Opinion, Miscellaneous, us embassy bangkok, US Embassy Thailand, US Visa and Immigration, US Visa Thailand | No Comments »