Can USA people own companies 100% foreign freehold in Thailand ?

[wowfactor10]

Hi,

Just wondering if USA people can own companies in Thailand 100% freehold without Thai share holders?

Also can USA people then use these companies in order to buy own land and houses in Thailand?

Then why have exceptions been made for USA and not for the other Countries?

[MAJIC]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

[simple1]

Ownership of land is also not open to foreign companies, including Amity treaty (US) companies, BVI or Hong-Kong limited companies or any other foreign juristic entity. These companies may, similar to foreign individuals, have a minority interest in a Thai company, but may also NOT use nominee structured holding companies for land ownership.

Foreign corporations with substantial investments benefiting the Thai economy may have special privileges and exemptions for land ownership granted for the duration of their business in Thailand under:

• Section 27 of the Investment Promotion Act
• Section 44 of the Industrial Estate Authority of Thailand Act
• Section 65 of the Petroleum Act

To form a company under the Treaty of Amnesty (some business activities are excluded from the Treaty) the following requirements must apply:

• A minimum of 51% of shares must be held by American citizens
• A minimum of 50% of directors must be American citizen(s)

http://www.samuiforsale.com/knowledge/land-property-ownership-thailand.html

Australia has an FTA with Thailand that has similarities to the Treaty of Amnesty e.g. majority share / Directors for Australian nationals, but again precludes some industries.

[Suradit69]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Not sure if that's entirely accurate regarding the companies ... although ownership of land may still be restricted.

The Thailand Treaty of Amity aims to provide significant advantages for US investors to run businesses in Thailand for both corporations and individuals. In particular, the Thailand Treaty of Amity provided the US two major trade advantages:

• The Thailand Treaty of Amity permits American companies to hold majority of the shares or the whole company, branch office or representative office located in Thailand.
• American companies may engage in business on the same basis as Thai companies, and are exempt from most of the restrictions of foreign investment imposed by the Alien Business Law of 1972.

While the Thailand Treaty of Amity provides the above-mentioned advantages, the US citizen is also subjected to several restrictions stipulated in the treaty. The Thailand Treaty of Amity prohibits American investors from engaging in the following reserved activities:

• Communications
• Transportation;
• Fiduciary functions
• Banking involving depository functions;
• Land Ownership, Exploitation of land or
• Other natural resources; and
• Domestic trade in indigenous agricultural products.

The following requirements must apply:

• A minimum of 51% of shares must be held by American citizens
• A minimum of 50% of directors must be American citizen(s)

• http://www.siam-legal.com/Business-in-Thailand/US-Thai%20Amity.php

Edited June 7, 2015 by Suradit69

[LindaLovelace]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

That is not correct for Americans.

The simple answer is the correct one -- the one from Simple1, that is.

[maprao]

Magic before you get on your soap box. Americans have special consideration under the treaty of Amity. They do not need any Thai Directors.

The treaty can be read online. There are restrictions regarding land and property ownership.

[kinmaew]

Invest your <deleted> money in a country that welcomes you!!

[thousandpercent]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

For the 100th time, you own the 49% you paid for.

Regards, Wordgoerdie

[waxon]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Really??!?!?

I have a 100% owned company. No sleeping - or awake - Thai directors.

For the hundredth time.... you are wrong.

[Minnehaha]

How does the old joke go?

Who won the Vietnam War?

Thailand.

[BarnicaleBob]

The Treaty of Amity was signed in 1966 by Thailand and the U.S. The treaty also gives special rights to Thai businessmen in America. Also keep in mind that at the time it was signed, Thailand had a communist insurgency problem and the U.S. sent military advisers with special forces units, as well as Air Force interceptor squadrons to assist Thailand. There was also a lot of infrastructure built here such as major highways and such by the U.S. and of course a very large amount of military aid in the form of aircraft, tanks and other equipment.

Things like that sometimes results in favorable business relations between two countries such as the Treaty of Amity.

Edited June 8, 2015 by BarnicaleBob

[inzman]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

what <deleted>, an American using the treaty of amity must own at least 51% up to 100 %. Why are you posting crap when you know nothing of what you are talking about. Go to bed.

[seancbk]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

You might want to educate yourself on all aspects of Thai company law before acting like you know everything about Thailand.

There is something called the Treaty of Amity, between Thailand and the US.

The treaty allows for American citizens and businesses incorporated in the U.S, or in Thailand to maintain a majority shareholding or to wholly own their company in Thailand, and thereby engage in business on the same basis as would a Thai national.

You might want to read more about it here - http://en.wikipedia.org/wiki/Treaty_of_Amity_and_Economic_Relations_(Thailand%E2%80%93United_States)

[sly2kusa]

One other little tidbit I have found out about (with regard to the Treaty of Amity for us Americans) is that you have to have at least 1 million bht in the bank to qualify (and in some cases - 2 million).

I understand the restriction on 'Domestic trade in agricultural products' to be something that does not affect the ability to produce the goods (such as a fish farm or organic fertilizers such as worm castings and such), but does anyone have a better definition of this? It's the last in the list of restrictions for the American company in Thailand.

[Suradit69]

One other little tidbit I have found out about (with regard to the Treaty of Amity for us Americans) is that you have to have at least 1 million bht in the bank to qualify (and in some cases - 2 million).

I understand the restriction on 'Domestic trade in agricultural products' to be something that does not affect the ability to produce the goods (such as a fish farm or organic fertilizers such as worm castings and such), but does anyone have a better definition of this? It's the last in the list of restrictions for the American company in Thailand.

Actually it's capital requirements. You need to bring the money in, but it's there to be used in the business. While it's a bit of a hurdle, expecting to start up a business without having at least 2 million baht to invest in it would seem like you'd be off to a shaky start. Since one cannot realistically expect a start-up business to be immediately profitable, those minimum amounts probably weed out some "entrepreneurs" who would quickly self-destruct anyway.

Minimum Capital Requirements

Although treaty-protected companies are given advantage treatment under US-Thai Amity Treaty, they still need to satisfy the minimum capital requirement under the Foreign business Act (FBA).

In case that the business is not restricted under the FBA, the minimum capital requirement for a treaty-protected company is THB 2 million.

On the other hand, if the business is required to obtain a Foreign Business License under FBA, the minimum capital requirement must be THB 3 million for each business activity.

[sly2kusa]

I definitely agree with you, and in all honesty - it's not an unreasonable amount of money that is being asked for as capital for the company. I just wanted to point it out (since to this point it had not been mentioned).

[MAJIC]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Really??!?!?

I have a 100% owned company. No sleeping - or awake - Thai directors.

For the hundredth time.... you are wrong.

Try reading this link and it doesn't sound like your 100% ownership is worth that much,especially as you can't own the land! among other important potential businesses,which you are excluded from owning, it seems 100% ownership is like beauty, only valid in the eyes of the beholder!

http://www.bangkokbase.com/bangkok-base-guides/us-amity-treaty-thailand-bangkok/

Edited June 8, 2015 by MAJIC

[thesetat2013]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Sorry MAJIC! You are DEAD WRONG!!! An American is permitted by Thai law to own 100% of a business in Thailand. There is a special law which permits this as per an agreement between the Thai and US government. This only applies to American citizens.

As for the OP.

I have researched this thoroughly and you are welcome to go to the American Business administration which is on Wireless Road down the street from the US Embassy nor check with the US Embassy and get a referral from them. They will provide assistance in setting up your business here as well as provide any supporting documents. Don't pay attention to idiots who just spout out stuff like this guy MAJIC. You are able to start and own 100% of a business with no Thai middlemen here in Thailand if you are American.

[NeverSure]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Sorry MAJIC! You are DEAD WRONG!!! An American is permitted by Thai law to own 100% of a business in Thailand. There is a special law which permits this as per an agreement between the Thai and US government. This only applies to American citizens.

As for the OP.

I have researched this thoroughly and you are welcome to go to the American Business administration which is on Wireless Road down the street from the US Embassy nor check with the US Embassy and get a referral from them. They will provide assistance in setting up your business here as well as provide any supporting documents. Don't pay attention to idiots who just spout out stuff like this guy MAJIC. You are able to start and own 100% of a business with no Thai middlemen here in Thailand if you are American.

Been taking your extra-polite pills today, have you?

[thesetat2013]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Sorry MAJIC! You are DEAD WRONG!!! An American is permitted by Thai law to own 100% of a business in Thailand. There is a special law which permits this as per an agreement between the Thai and US government. This only applies to American citizens.

As for the OP.

I have researched this thoroughly and you are welcome to go to the American Business administration which is on Wireless Road down the street from the US Embassy nor check with the US Embassy and get a referral from them. They will provide assistance in setting up your business here as well as provide any supporting documents. Don't pay attention to idiots who just spout out stuff like this guy MAJIC. You are able to start and own 100% of a business with no Thai middlemen here in Thailand if you are American.

Been taking your extra-polite pills today, have you?

Maybe??? I'm not sure whereas apparently you are Neversure! Hehee

[MAJIC]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Sorry MAJIC! You are DEAD WRONG!!! An American is permitted by Thai law to own 100% of a business in Thailand. There is a special law which permits this as per an agreement between the Thai and US government. This only applies to American citizens.

As for the OP.

I have researched this thoroughly and you are welcome to go to the American Business administration which is on Wireless Road down the street from the US Embassy nor check with the US Embassy and get a referral from them. They will provide assistance in setting up your business here as well as provide any supporting documents. Don't pay attention to idiots who just spout out stuff like this guy MAJIC. You are able to start and own 100% of a business with no Thai middlemen here in Thailand if you are American.

Well I wouldn't be idiot enough to kid myself that buying/setting up a company on the following terms is regarded as 100% ownership: of a business setup, which Thailand does not allow the following,law of Amity to Farangs....(regarding setting up/buying business)

* own land

* engage in the business of inland communication

* engage in the business of inland transportation

* engage in fiduciary functions

* engage in banking involving depository functions

* exploit land or other natural resources

It is normal the UK that the business is bought or setup 100% including the land.Is it normal business in the USA to buy/setup a company,of which you don't own the land?

Edited June 9, 2015 by MAJIC

[NeverSure]

Is it normal business in the USA to buy/setup a company,of which you don't own the land?

Yes, it is the favored method. Companies which got big fast such as Walmart, Costco, Home Depot etc. couldn't have done it if they had bought the land. They put their money into the business which pays for a lease on the land. They find a location they want and negotiate with the owner for what's called a "build to suit" building and improvements and then lease for at least 20 years with options to renew.

The retail business doesn't put up more than first and last months' rent. They also rarely own the fixtures and equipment such as shelving, cash registers and so on. They lease that too.

This is how they can quickly expand into thousands of stores - using other people's money. They often even get inventory financing. Sam Walton leveraged a small town hardware store in Arkansas into thousands of Walmart Stores.

A must-read for people interested in business is available at Amazon, Walmart etc. It's "Built From Scratch: How A Couple of Regular Guys Grew The Home Depot From Nothing to $30 Billion Dollars." Walmart

[MAJIC]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Sorry MAJIC! You are DEAD WRONG!!! An American is permitted by Thai law to own 100% of a business in Thailand. There is a special law which permits this as per an agreement between the Thai and US government. This only applies to American citizens.

As for the OP.

I have researched this thoroughly and you are welcome to go to the American Business administration which is on Wireless Road down the street from the US Embassy nor check with the US Embassy and get a referral from them. They will provide assistance in setting up your business here as well as provide any supporting documents. Don't pay attention to idiots who just spout out stuff like this guy MAJIC. You are able to start and own 100% of a business with no Thai middlemen here in Thailand if you are American.

Well I wouldn't be idiot enough to kid myself that buying/setting up a company on the following terms is regarded as 100% ownership: of a business setup, which Thailand does not allow the following,law of Amity to Farangs....(regarding setting up/buying business)

* own land

* engage in the business of inland communication

* engage in the business of inland transportation

* engage in fiduciary functions

* engage in banking involving depository functions

* exploit land or other natural resources.

*****

It is normal in the UK that a business is bought or setup 100% including the land......is it normal business in the USA to buy/setup a company,of which you don't own the land?

[NeverSure]

I might add that even most big banks, insurance companies etc. in the big cities lease space in a bigger skyscraper while only some own the building. Donald Trump is in real estate and his money comes from leasing to people like that. It's two different business models.

[NeverSure]

For the 100th time you can own 49%, the sleeping Thai Directors own 51% so in reality you don't own the company you paid for!

Sorry MAJIC! You are DEAD WRONG!!! An American is permitted by Thai law to own 100% of a business in Thailand. There is a special law which permits this as per an agreement between the Thai and US government. This only applies to American citizens.

As for the OP.

I have researched this thoroughly and you are welcome to go to the American Business administration which is on Wireless Road down the street from the US Embassy nor check with the US Embassy and get a referral from them. They will provide assistance in setting up your business here as well as provide any supporting documents. Don't pay attention to idiots who just spout out stuff like this guy MAJIC. You are able to start and own 100% of a business with no Thai middlemen here in Thailand if you are American.

Well I wouldn't be idiot enough to kid myself that buying/setting up a company on the following terms is regarded as 100% ownership: of a business setup, which Thailand does not allow the following,law of Amity to Farangs....(regarding setting up/buying business)

* own land

* engage in the business of inland communication

* engage in the business of inland transportation

* engage in fiduciary functions

* engage in banking involving depository functions

* exploit land or other natural resources.

*****

It is normal in the UK that a business is bought or setup 100% including the land......is it normal business in the USA to buy/setup a company,of which you don't own the land?

Did you miss posting something? Yes it is. Very few businesses own their land. There wouldn't be privately and separately owned shopping centers if they didn't lease. A guy with a couple of million dollars couldn't buy and own ten McDonald's franchise restaurants if he didn't lease the land and a build to suit building, signs, equipment and furnishings. Each equipped building with land costs more than a million dollars not to mention the franchise fees.