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Amity Treaty Certification: A Separate Process from Thai Incorporation?
Transcript of the above video:
As the title of this video suggests, we are posing the question, well it's sort of a question insofar as is Amity Treaty Certification a different process from the process of incorporating a Thai Company? The answer to that question is yes.
For those who are unaware, under the terms of the US-Thai Treaty of Amity which is a bilateral Treaty whose iterations go back about 191 years if I remember correctly, and diplomatic relations go back over 200 years between Thailand and the United State - in fact Thailand is United States' oldest ally here in this region. That being said, the terms of that Treaty allow for what is called National Treatment of American businesses in Thailand notwithstanding the provisions of the Foreign Business Act which pertain to many other foreign enterprises here in the Kingdom i.e. what you often hear about where foreigners need to have 51% Thai shareholders to 49% foreign. So the point I am trying to make with that is by being granted national treatment, Amity Treaty Companies can be owned 100% by Americans.
So the thing to understand and take away from this video is Amity Treaty Certification, the process of certifying a Thai Company, so you have the underlying Thai Company, and then you need to certify it as an Amity Treaty Company in order to gain the benefit of "National Treatment", that certification process is a different process from the underlying incorporation process. This can be something that causes confusion sometimes amongst clients here in the office where they want to know okay, “what is the total processing time for all of this?” Well you are talking about two different things. You're talking about one process for getting a company incorporated and where a foreigner is involved, there's an entirely separate process associated with work authorization, Business Visa issuance etc. Then there is also the issue of Amity Certification which is its own process separate and apart from that. Now if you are setting up from scratch, you are trying to set up a small business here in Thailand, the whole process sort of runs together. That being said, you do need to understand that they are at the end of the day, two different processes. One for having an incorporated entity and another for gaining National Treatment benefits here in the Kingdom of Thailand.