Status Of Treay Of Amity

[haroldc]

Does anyone know what has happened to the Treaty of Amity? Did it expire or was it extended again? If it expired, has the Thai Government actually issued any guidelines or regulations regarding Treaty businesses?

[climbingwez]

Its still in place, it was extended again though i dont know what the new expiry date is.

[Vit42]

See below from the U.S. Country Commercial Guide 2004 issued by the U.S. Embassy in Thailand. Last paragraph is about the amendment.

TREATY OF AMITY

The U.S.-Thai Treaty of Amity and Economic Relations (AER) was originally signed in 1833. The 1966 reiteration of the Treaty allows U.S. citizens and businesses incorporated in the U.S., or in Thailand that are majority-owned by U.S. citizens, to

engage in business on the same basis as Thais, exempting them from most of the

restrictions on foreign investment imposed by the Alien Business Law of 1972 and its successor, the Alien Business Act of 1999. Under the Treaty, Thailand restricts

American investment only in the fields of communications, transport, fiduciary

functions, banking involving depository functions, the exploitation of land or other

natural resources, and domestic trade in agricultural products. Notwithstanding their treaty rights, many Americans choose to form joint ventures with Thai partners, allowing them to hold the majority stake because of their familiarity with the Thai economy and local regulations.

In the Uruguay Round trade negotiations, all parties agreed that the privileges

provided by the Treaty of Amity to U.S. investors in the service sector would be

exempted from “Most Favored Nation” (MFN) requirements for ten years, beginning

with the establishment of the World Trade Organization (WTO) in January 1995. If,

by 2005, treatment for WTO members is not equal to that provided under the Treaty of Amity, the Treaty will have to be adjusted, or another exemption sought.

In October 2002, a Ministry of Commerce regulation stipulated that all foreign investors would be subject to a minimum investment threshold when making new investments in Thailand. This regulation contradicts the national treatment provision of the AER.

In response to concerns expressed by the Embassy and the American business

community, the Ministry has issued an amended regulation in August 2004 that

would temporarily exempt American investors from the minimum investment

requirement for a period of five years. The RTG expects a future FTA between

Thailand and the U.S. will address this issue and replace the AER. In addition, the

RTG has also indicated that it would amend the Alien Business Act, which sets the

minimum capital requirement for foreigners.

[Jeff Jarvis]

Would a person that holds an Amity certificate be required to have a work permit? Buy property?

What type VISA?

[Vit42]

Would a person that holds an Amity certificate be required to have a work permit? Buy property?

What type VISA?

<{POST_SNAPBACK}>

Jeff, i'm not an expert in thai law and can only quote and deduce to you my opinions from the Country Commercial Guide, which is suppose to help U.S. individuals and firms conduct business in Thailand. Seems that "any entity" has to have a work permit. I'm not sure what you meant by "Buy property?" but i doubt if that's a requirement.

BTW, i checked out your website... pretty cool, maybe i'll have to try it next time i'm in town.

REGISTRATION, WORK PERMITS

Any entity wishing to do business in Thailand must register with the Department of Business Development at the Ministry of Commerce. Firms engaging in production activities need to register with the Ministries of Industry and Labor and Social Welfare. American citizens can enter Thailand without a visa for visits of up to thirty days. In order to apply for a work permit, a foreigner must enter Thailand on a nonimmigrant visa (issued at Thai embassies and consulates) for a stay of three months or, for foreigners with well-defined work or business plans, for a stay of one year. Issuance of the three-month visa is usually completed within two or three days; the one-year visa requires approval from the Immigration Bureau of the Royal Thai Police in Bangkok. Upon obtaining a work permit, a holder of a three-month visa may apply for a one-year visa, which generally can be extended every year. Foreigners holding non-immigrant visas who have lived in Thailand for at least three consecutive years may apply for permanent residence in Thailand if they meet strict criteria regarding investment or professional skills.

The Alien Occupation Law of 1972 (Decree Number 322) lists occupations reserved

exclusively for Thais, including professional services such as accounting, architecture, law, and engineering, the manufacture of traditional Thai handicrafts,

and manual labor. The Law also states that all non-Thais working in Thailand, with

limited exceptions, must possess a work permit issued at the discretion of the

Ministry of Labor, although some foreigners already working in Thailand were

exempted through a “grandfather” clause. Factors that influence the granting of work permits include the degree of specialization required by the position; the size of the firm in terms of number of employees and registered capital; and the ratio of Thai nationals to foreigners employed by the firm. Foreigners working for the Thai government or working on projects prompted by the Board of Investment (BOI) usually have little difficulty obtaining work permits. The government’s “Buy Thai” policy creates a preference for Thai nationals in the hiring of government consultants, although the government continues to hire foreign consultants. Work permits in other areas are sometimes difficult to obtain, despite the fact that senior managers and technical personnel are in short supply.

[theviking]

Would a person that holds an Amity certificate be required to have a work permit? Buy property?

What type VISA?

<{POST_SNAPBACK}>

Jeff, i'm not an expert in thai law and can only quote and deduce to you my opinions from the Country Commercial Guide, which is suppose to help U.S. individuals and firms conduct business in Thailand. Seems that "any entity" has to have a work permit. I'm not sure what you meant by "Buy property?" but i doubt if that's a requirement.

BTW, i checked out your website... pretty cool, maybe i'll have to try it next time i'm in town.

REGISTRATION, WORK PERMITS

Any entity wishing to do business in Thailand must register with the Department of Business Development at the Ministry of Commerce. Firms engaging in production activities need to register with the Ministries of Industry and Labor and Social Welfare. American citizens can enter Thailand without a visa for visits of up to thirty days. In order to apply for a work permit, a foreigner must enter Thailand on a nonimmigrant visa (issued at Thai embassies and consulates) for a stay of three months or, for foreigners with well-defined work or business plans, for a stay of one year. Issuance of the three-month visa is usually completed within two or three days; the one-year visa requires approval from the Immigration Bureau of the Royal Thai Police in Bangkok. Upon obtaining a work permit, a holder of a three-month visa may apply for a one-year visa, which generally can be extended every year. Foreigners holding non-immigrant visas who have lived in Thailand for at least three consecutive years may apply for permanent residence in Thailand if they meet strict criteria regarding investment or professional skills.

The Alien Occupation Law of 1972 (Decree Number 322) lists occupations reserved

exclusively for Thais, including professional services such as accounting, architecture, law, and engineering, the manufacture of traditional Thai handicrafts,

and manual labor. The Law also states that all non-Thais working in Thailand, with

limited exceptions, must possess a work permit issued at the discretion of the

Ministry of Labor, although some foreigners already working in Thailand were

exempted through a “grandfather” clause. Factors that influence the granting of work permits include the degree of specialization required by the position; the size of the firm in terms of number of employees and registered capital; and the ratio of Thai nationals to foreigners employed by the firm. Foreigners working for the Thai government or working on projects prompted by the Board of Investment (BOI) usually have little difficulty obtaining work permits. The government’s “Buy Thai” policy creates a preference for Thai nationals in the hiring of government consultants, although the government continues to hire foreign consultants. Work permits in other areas are sometimes difficult to obtain, despite the fact that senior managers and technical personnel are in short supply.

<{POST_SNAPBACK}>

Wanna send it by ems?

??

[dr_Pat_Pong]

Would a person that holds an Amity certificate be required to have a work permit? Buy property?

What type VISA?

<{POST_SNAPBACK}>

Still need a WP and a Non-Immigrant visa.

[Jeff Jarvis]

Thanks for the info. After reading the treaty, I thought I could bypass the work permit.

[Sunbelt Asia]

Does anyone know what has happened to the Treaty of Amity? Did it expire or was it extended again? If it expired, has the Thai Government actually issued any guidelines or regulations regarding Treaty businesses?

Happy to say, it has been extended. We are still submitting applications for Amity and just week, we had 4 new clients submitting applications.

You still need a work permit and visa. The only difference than a foreign control company...the shares are majority owned and no Thais are required for ownership.

www.sunbeltasia.com

www.lawyer.th.com

www.property.th.com

[Jeff Jarvis]

Sunbelt,

Does a holder of a Amity certificate have any rights to buy property, similar as a holding Co. ?

[Sunny Valentine]

Is it possible for a company under Thai-US treaty to have a minority of non-US and non-Thai shareholders? I.e. 51% USA, 49% British for instance?

Sunny

[Dr. Burrito]

Can a Treat of Amity company apply for BOI status?

[stoneman]

Thanks for the info. After reading the treaty, I thought I could bypass the work permit.

<{POST_SNAPBACK}>

Jeff...

According to my lawyer, you can own an Amity Treaty company without a work permit, but you just can't work there...Like being a major shareholder in a corporation...

I own an Amity Treaty company and I work there and I have a work permit

Stoneman