Process Of Establishing Amity Company?

[Dr. Burrito]

Hi Folks,

We have finally sifted through all the rubble, so to speak, and are preparing to establish an Amity company. In the meantime, another group is looking at buying my present employer's Thai registered company.

So two lines of question if I may.

Line 1

The lawyer says to establish the Amity company, she must first open a Thai company then convert it to a Treaty of Amity company. To me, this seems a bit odd, as there are only three primary shareholders, two of which are American and it will mean we hold 70% of the company. How could it ever be registered as a Thai company anyway under that scenario,as it exceeds the 49% foreign ownership at that point, until it is converted to Amity. Frankly, I think we need a new lawyer or she needs better advice.

I would hope we could open it directly as an Amity company and avoid a layer of unnecessary money and time.

Line 2

My friend's existing Thai registered company is being looked at for takeover from some Americans. They both want it to be Amity and BOI. Can they buy it directly and convert it to an Amity company, or do they need to establish an Amity company here separate of their final purchase and buy it through that entity?

That's it, I think anyway :-)

Thank,

Dr. B

[Sunbelt Asia]

Line 1

The lawyer says to establish the Amity company, she must first open a Thai company then convert it to a Treaty of Amity company. To me, this seems a bit odd, as there are only three primary shareholders, two of which are American and it will mean we hold 70% of the company. How could it ever be registered as a Thai company anyway under that scenario,as it exceeds the 49% foreign ownership at that point, until it is converted to Amity. Frankly, I think we need a new lawyer or she needs better advice.

I would hope we could open it directly as an Amity company and avoid a layer of unnecessary money and time.

The Application Procedures for a Company to Obtain Treaty Certification

To qualify for benefits under the Treaty of Amity, the steps below must be completed.

Company Limited:

The Department of Business Development: The applicant obtains documents verifying that the company has been registered in compliance with Thai law. This is called " a company that has been incorporated in Thailand."

The U.S. Commercial Service: The applicant submits documents confirming that a majority of the company's shareholders are US citizens.

The Department of Business Development: The applicant submits documentation required to obtain Alien Business License.

Partnership,Representative Office,Branch Office,Sole Proprietorship,and U.S. Subsidiary:

The U.S. Commercial Service: The applicant submits documents confirming that a majority of the company's shareholders are US citizens.

The Department of Business Development: The applicant submits documentation required to obtain Alien Business License.

Line 2

My friend's existing Thai registered company is being looked at for takeover from some Americans. They both want it to be Amity and BOI. Can they buy it directly and convert it to an Amity company, or do they need to establish an Amity company here separate of their final purchase and buy it through that entity?

They simply buy the shares and register it under Amity. The drawback is the company should not be trading (accepting funds from clients) while the Amity is being processed.

www.sunbeltasiagroup.com

[LPCustom69]

Sunbelt

What would the costs be to establish an Amity company, start to finish for both a limited company and/or a branch office/representative office or US subsidiary? Is the price the same, and do each involve certain legal differences? Any advantages of one over another?

What would the basic first year costs be, excluding the actual day to day operating expenses of running the business?

Thanks in advance for your answers.

Line 1

The lawyer says to establish the Amity company, she must first open a Thai company then convert it to a Treaty of Amity company. To me, this seems a bit odd, as there are only three primary shareholders, two of which are American and it will mean we hold 70% of the company. How could it ever be registered as a Thai company anyway under that scenario,as it exceeds the 49% foreign ownership at that point, until it is converted to Amity. Frankly, I think we need a new lawyer or she needs better advice.

I would hope we could open it directly as an Amity company and avoid a layer of unnecessary money and time.

The Application Procedures for a Company to Obtain Treaty Certification

To qualify for benefits under the Treaty of Amity, the steps below must be completed.

Company Limited:

The Department of Business Development: The applicant obtains documents verifying that the company has been registered in compliance with Thai law. This is called " a company that has been incorporated in Thailand."

The U.S. Commercial Service: The applicant submits documents confirming that a majority of the company's shareholders are US citizens.

The Department of Business Development: The applicant submits documentation required to obtain Alien Business License.

Partnership,Representative Office,Branch Office,Sole Proprietorship,and U.S. Subsidiary:

The U.S. Commercial Service: The applicant submits documents confirming that a majority of the company's shareholders are US citizens.

The Department of Business Development: The applicant submits documentation required to obtain Alien Business License.

Line 2

My friend's existing Thai registered company is being looked at for takeover from some Americans. They both want it to be Amity and BOI. Can they buy it directly and convert it to an Amity company, or do they need to establish an Amity company here separate of their final purchase and buy it through that entity?

They simply buy the shares and register it under Amity. The drawback is the company should not be trading (accepting funds from clients) while the Amity is being processed.

www.sunbeltasiagroup.com

[cclub75]

The U.S. Commercial Service: The applicant submits documents confirming that a majority of the company's shareholders are US citizens.

By the way Sunbelt, you may know that some non US companies, in order to by pass FBA, are looking forward to create US LLC or Co, and then those juristic US persons could act as US shareholders in a company under Amity Treaty in Thailand...

Do you confirm that a US company can act as US shareholder under the Amity Treaty, or it has to be only US individuals ?

Edited May 6, 2007 by cclub75

[DrDave]

Is a US Amity company (company limited) permitted to hold title to land?