Treaty Of Amity And Work Permits

[ExpatAmerican2005]

I have heard varying opinions regarding work permits for U.S. Treaty of Amity businesses. Some say a business must have at least 4 Thai employees, the owner or majority shareholder must pay himself a minimum of 60,000 baht, there must be a minimum of 2 million baht paid up capital and that the work permit will be restricted in both geography, type and scope of work.

Article IV of the AER treaty states in part,

(1.) Nationals and companies of either Party shall be accorded national treatment with respect to establishing, as well as acquiring interests in, enterprises of all types for engaging in commercial, industrial, financial and other business activities within the territories of the other Party.

(4.) Enterprises which are or may hereafter be established or acquired by nationals and companies of either Party within the territories of the other Party and which are owned or controlled by such nationals and companies, whether in the form of individual proprietorships, direct branches or companies constituted under the laws of such other Party, shall be permitted freely to conduct their activities therein upon terms no less favorable than like enterprises owned or controlled by nationals of such other Party or of any third country.

(5.) Nationals and companies of either Party shall enjoy the right to control and manage the enterprises which they have established or acquired within the territories of the other Party, and shall be permitted without discrimination to do all things normally found necessary and proper to the effective conduct of enterprises engaged in like activities.

I further understand that only an American may act as managing director of an AER treaty limited company and that any activity by the American with regards to the business is work under Thai law. It appears that if what I was told is true, the majority shareholder of an AER treaty company cannot operate his business unless he submits to the additional demands of the various ministries thus rendering the business unusable.

The U.S. Government has addressed the issue of capitalization requirements with the Ministry of Commerce. If what I am told is true it appears other Thai Ministries may be trying to institute an end run around the agreement to change the terms of the treaty. Has anyone here had experience claiming AER treaty benefit when applying for a visa and work permit and if so what was the outcome?

Edited March 12, 2005 by ExpatAmerican2005