Amity Treaty Sole Proprietorship

[Mortiphobia]

Hello,

I am interested in setting up an Amity Treaty certified Sole Proprietorship company in Thailand.

I have already used Google and the 'search' field on this forum and have read numerous answers regarding capitalization requirements, employing Thai employees, etc.

However, I need clarification and facts.

How easy is this to get done and what are the requirements?

The company would most likely be conducting the export of products from Thailand to be resold in the USA.

What are the requirements for obtaining a work-permit under this company? How about as a different company - a consultancy?

As I understand it the process is as follows:

1) obtain non-immigrant business visa (how do you get the business visa if your company isn't formed yet, regarding the business invitation letter do you write one addressing yourself? should you first come in on a tourist visa and setup the sole prop and then do a visa run for a business visa?)

2) apply for work permit, receive work permit

3) apply for 1-year visa extension, renew, rinse and repeat annually with visa and work permit

Thanks for your help!

[farang62]

I have had my "Thai American Amity Treaty Company" since 1992.

It helped us a lot especially in importing restricted materials from the U.S., Exporting is a lot easier also.

There are many things you can do under this treaty that you can not do with a regular company here in Thailand, (less restrictions)

There are certain government officials who try and tell you that the treaty is not legal, "wrong Government".

If you look at the treaty preamble it states the treaty is between the King of Thailand and Lindon B. Johnson President of the United States of America.

I OWN 95% of my company, no problem. Other than your creative use of your advantages afforded you under the treaty, the rules are the same as any company.

There are people who specialize in helping you set up the treaty at the U.S. Embassy. They can answer you questions and help you a lot.

The Thai lawyers will tell you Very Difficult to do, No don't fall for it, talk to the embassy and get their help.

The only official copy I know of in English and Thai are on the web site of the Thai Embassy in Washington D.C.. The treaty also specifies that both copies are correct in both languages, don't fall for the translation scheme.

I have never had a problem with my company here in Thailand, it's easy Follow the rules, pay your taxes, have the required work permit, .

And no you can not own property in Thailand. The law in Thailand no matter which scheme they try and sell you. Foreigners (not Thai Citizens) CAN NOT OWN PROPERTY IN THAILAND.

Good Luck with the Treaty, no matter what the naysayers say it is easy and will help you a lot both with import and exports.

You will need at least 7 Americans to set up the company, they MUST BE Americans you can also have a few Thai's in there also. (looks better) I gave each original share holder 10 shares in the company and I kept the rest of the original 100,000 shares. It is up to you how you want to divide the stock, just remember NO one but a Thai or American can be a majority stock holder of you loose your treaty status.

The interesting thing is that i have never heard of any problems or complaints from those of us the are protected under the treaty.

Any questions PM me, my company is also for sale (electrical and water engineering) getting to old to keep up with it, if you know anyone.

One suggestion I would make is in your Articles of Incorporation under businesses you will do, put everything you can think of, I have literally hundreds and hundreds, 3 typed pages.

Easy to do now and Protect your ass, difficult and expensive to change once the company license is issued. If you need I can send a copy of mine, with a few addition suggestions,Technology updates.

let me know how things go.

Farang62

[avidflyer]

The OP said,

"I am interested in setting up an Amity Treaty certified Sole Proprietorship company in Thailand".

Sole Proprietorships are for self employed persons. "YOU" are the company. My 'company' name is my name.

The BIG problem with American Sole Proprietorships is getting Thai Immigration and the Department of Labor to recognize it.

Before you go to the trouble and expense of getting a S.P., check with your local Immigration police and your provincial Dept of Labor to see what, if any, policy they have.

Actually, you don't need a non imm B visa to get a work permit. Any non imm will do, according to Thai Labor Law and I found that to be true.

Things may have changed, but when I showed my Ministry of Commerce Registration papers and my work permit, Imm said "No Imm-B. You are not a company."

Good luck and please let us know what you find out.

[Sunbelt Asia]

While it is possible to get an Amity treaty sole proprietorship, new applicants cannot get a work permit on a sole proprietorship. If you already have a sole proprietorship with a work permit an extension would not be possible as Immigration only accepts applications from Limited Partnerships and Limited Companies. They do not recognize natural entities.

Additionally, running an export business is not a restricted business for foreigners so the company would not be accepted for Amity as only restricted businesses qualify. Since the business you plan to open is not restricted then the simplest solution would be to open a Limited Company with you holding 99.99% of the shares and two other shareholders holding the remaining one share each. With this you can apply for a work permit and extension of your Non-B visa. Otherwise you will need to go the usual route of a majority owned Thai company.

If Sunbelt forms your company, we can sponsor you for your 1-Year Non-Immigrant “B” - Multiple Entry Visa which will be issued at the discretion of the Embassy or Consulate. Note it is generally easier to get one at an Embassy in the US or Europe than in Asia where many consulates and Embassies are no longer issuing them. However, again it is at the Embassy or Consulate's discretion. After you form the company, depending on the Immigration officers discretion, since you are a new start- up, based on registered capital and other factors, you can apply for a extension of stay based on business. If you are not accepted for the first couple years then you will need to show two audits as required by law. You would need to travel outside of Thailand every 90 days until the extension is approved.

Further information on Sunbelts fees can be found on our website: http://sunbeltlegaladvisors.com/

[Mortiphobia]

I'm confused I thought foreigners were prohibited from owning majority shares if establishing a limited company? Or are Americans exempt even if the company is not Amity certified?

[dcutman]

'Sunbelt Asia' timestamp='1306213001' post='4445028'

While it is possible to get an Amity treaty sole proprietorship, new applicants cannot get a work permit on a sole proprietorship. If you already have a sole proprietorship with a work permit an extension would not be possible as Immigration only accepts applications from Limited Partnerships and Limited Companies. They do not recognize natural entities.

I was reading a thread about the same subject from 2007/2008. Sunbelt was excellent in advise. From what I am reading now on this thread from Sunbelt and the old thread from Sunbelt is different. The following is from the other thread. Has somthing Changed since then?

Once again. You do NOT NEED 2 million Baht registered capital for a work permit for a a sole proprietorship business or natural person. ( This means you or someone else is owning the business with no partners. )

Have partners with a Thai Limited Company or Limited partnership? You want a work permit? You then need 2 million Baht registered capital.

Thanks. At least I had *that* part right (about needing 4 Thai employees). Needing four people I don't need. <g> Maybe one or two, but actually I expected to do most of the work myself.4 Thai employees is only one option with a sole proprietorship business. You also could qualify by paying 50K taxes last year or gross sale of 700K.

You do not need ANY Thai employees with a Limited Company or Limited Partnership.

So I would need B2m (for my work permit)

No you would not. You stated

Under the Amity Treaty I can own a sole proprietorship business with no Thai partners,

2 million Baht registered capital is NOT required.

Edited August 18, 2011 by dcutman

[dcutman]

Sunbelt, is this old information?

With all due respect to Steve, it is not correct. I'm not saying that it did not happen; however a work permit is allowed for a sole proprietorship( natural person) in Oct 2005 (as well as before Oct 2005 and after Oct 2005)

i.e. Have you more recent experience (since 10/2005) with sole proprietorships entitled to a work permit?

How bout yesterday? By the way, we have done around 130 work permits for natural employers in the past 90 days!

(I googled "amity treaty" thailand "sole proprietor" and 21 out of 22 hits were ThaiVisa forum threads.)

This is another piece from the old thread

[Rogermoore]

I have had my "Thai American Amity Treaty Company" since 1992.

It helped us a lot especially in importing restricted materials from the U.S., Exporting is a lot easier also.

There are many things you can do under this treaty that you can not do with a regular company here in Thailand, (less restrictions)

There are certain government officials who try and tell you that the treaty is not legal, "wrong Government".

If you look at the treaty preamble it states the treaty is between the King of Thailand and Lindon B. Johnson President of the United States of America.

I OWN 95% of my company, no problem. Other than your creative use of your advantages afforded you under the treaty, the rules are the same as any company.

There are people who specialize in helping you set up the treaty at the U.S. Embassy. They can answer you questions and help you a lot.

The Thai lawyers will tell you Very Difficult to do, No don't fall for it, talk to the embassy and get their help.

The only official copy I know of in English and Thai are on the web site of the Thai Embassy in Washington D.C.. The treaty also specifies that both copies are correct in both languages, don't fall for the translation scheme.

I have never had a problem with my company here in Thailand, it's easy Follow the rules, pay your taxes, have the required work permit, .

And no you can not own property in Thailand. The law in Thailand no matter which scheme they try and sell you. Foreigners (not Thai Citizens) CAN NOT OWN PROPERTY IN THAILAND.

Good Luck with the Treaty, no matter what the naysayers say it is easy and will help you a lot both with import and exports.

You will need at least 7 Americans to set up the company, they MUST BE Americans you can also have a few Thai's in there also. (looks better) I gave each original share holder 10 shares in the company and I kept the rest of the original 100,000 shares. It is up to you how you want to divide the stock, just remember NO one but a Thai or American can be a majority stock holder of you loose your treaty status.

The interesting thing is that i have never heard of any problems or complaints from those of us the are protected under the treaty.

Any questions PM me, my company is also for sale (electrical and water engineering) getting to old to keep up with it, if you know anyone.

One suggestion I would make is in your Articles of Incorporation under businesses you will do, put everything you can think of, I have literally hundreds and hundreds, 3 typed pages.

Easy to do now and Protect your ass, difficult and expensive to change once the company license is issued. If you need I can send a copy of mine, with a few addition suggestions,Technology updates.

let me know how things go.

Farang62

Hi I seen your quote please send me a copy . I was just wondering if I needed a company and if I needed a workpermit if I ams sole proprietor . My email is roger [email protected] Thanks

[Rogermoore]

The OP said,

"I am interested in setting up an Amity Treaty certified Sole Proprietorship company in Thailand".

Sole Proprietorships are for self employed persons. "YOU" are the company. My 'company' name is my name.

The BIG problem with American Sole Proprietorships is getting Thai Immigration and the Department of Labor to recognize it.

Before you go to the trouble and expense of getting a S.P., check with your local Immigration police and your provincial Dept of Labor to see what, if any, policy they have.

Actually, you don't need a non imm B visa to get a work permit. Any non imm will do, according to Thai Labor Law and I found that to be true.

Things may have changed, but when I showed my Ministry of Commerce Registration papers and my work permit, Imm said "No Imm-B. You are not a company."

Good luck and please let us know what you find out.

I need to operate as sole proprietor I am u.s. person please help .Cntactme at [email protected] I don't even need a work permit do i if I am sole proprietor?

[avidflyer]

Sorry, but you do need a work permit to do ANY work in Thailand. Even if you are a Treaty of Amity Sole Proprietor. And, as was stated above, Immigration hates to recognize anything less than a limited company or partnership as deserving of a Non-Imm-B. It is not easy to work around that reality.

[avidflyer]

NEW INFORMATION (for me, at least) The Chonburi Labor office is no longer issuing new work permits to holders of a non-imm Oa (retirement) visa extension based on Sole Proprietorship under the USA-Thai Treaty of Amity. They want to see a non-imm O extension. I'm not sure if any of other non-imm visa would work.