US Amity Treaty

[gummigut]

Anyone see any glaring pros to opening a company under the US Amity Treaty besides that of outright majority ownership (which can be circumvented through good bylaws).

 

I am surprised no one mentioned the fact that the treaty will not be renewed next year (exact time I don't know).

 

Given the fact that you can use bylaws to retain control of company (that is setup correctly) I don't see setting up a company to be grandfathered under this treaty as having any special advantage, but would like to know if anyone thinks otherwise.

 

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[StoneSoup]

Gummi - You are fishing for "pro" comments, and I don't have any.

 

The big issues are:

 

1. You still need seven investors (if you had seven ACTUAL US investors lokking to fund a company, then it would make sense to take this route).

 

2. As a foreign-owned company, an Amity company must obtain an Alien Business License from the Department of Foreign Business in Nonthaburi - in most cases, this costs a total of about 42,000 baht in fees.

 

Regards,

SS

[gummigut]

Yah, my immediate reaction upon first hearing about this was, "Will I lose an opportunity if I don't establish a company this year," but all I see, as you said, are just more costs, lol.

 

Still, didn't hurt to ask

 

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[Sporty]

StoneSoup,

 

[color:"red"] [/color]

1. You still need seven investors (if you had seven ACTUAL US investors lokking to fund a company, then it would make sense to take this route).

 

I do know you are a professilnal in this area, and very well might be the case I am missing something.

 

It is my understanding however, you can apply under the treaty, as a sole proprietorship, or partnership, and do not need to incorporate.

 

 

http://www.sgalegal.com/guide/treaty.html

 

Taken from the above page:

 

"The second step of the Treaty registration process involves filing particular documents with the United States Commercial Service in Diethelm Tower on Wireless Road (near the United States Embassy). The documents required vary depending on the type of company desirous of registration.

 

Sole Proprietorship Notarized copy of owner?s passport or birth certification indicating U.S. citizenship. (Notarization services are available at U.S. Embassy?s American Citizen Services.

 

Partnership, Branch office, 1. Articles of Incorporation

Joint Venture, or Limited 2. Bylaws of the company

Company 3. Affidavit of the company manager or corporate office, which includes:

a. Company?s name, registration number, and date of registration

b. Address of the company?s registered office.

c. Jurisdiction under which the company is registered.

d. Name, address, nationality, age, and race of each director, number of shares held by each, and identification of the director(s) with the power to bind the company.

e. Authorized capital of the company, number of shares including the par value of each and the amount of paid up capital.

f. Total number of shareholders, their nationalities, and the number of shares owned or held by them."

 

 

FOR ME, to be a sole proprietor, and to run and/or fold it up as an extention of my US business, with no minimum balance in Thailand, as opposed to a Representative office, is a HUGE benifit. Making the 42,000 baht, chump change.

 

I have serious doubt, if you can establish a company/corporation, for close to or less than 42,000 in Thailand. Making this a real bargain.

 

Sporty

 

[StoneSoup]

The practical problem here for a US-owned sole proprietorship is getting a work permit and entry permit extension. You basically can't get these. The Labor Ministry rules do not really allow for a foreign sole proprietorship - nor does the Immigration system.

 

That is the constant problem here - someone in the Minstry of Commerce will announce a new rule to stimulate foreign investment (or whatever) - and that ministry will play along. But the other Ministries (and there is constant rivarly between all elements of Thai government) will plod on with their standard policies, making it impossible to proceed.

 

I would be most interested to have a chance to talk to a US sole proprietor with a work permit, and a long-stay entry permit. It is at least theorectically possible, but I have never heard of a success story.

 

My guess is that it might work for the spouse of a Thai citizen, who was operating as a pure specialist - surgeon, or lawyer, or similar. Immigration, and to a lesser extent Labor Department do have some non-standard avenues available for specialists.

 

Cheers!

SS

[Guest]

Gummigut,

 

If you are planning to create a global empire an Amity company might be useful.

 

Multi national companies often do as there are distinct differences (and serious optimization possibilities) on the accounting and tax treatment of wholly owned subsidiaries compared with minority holdings in foreign companies.

 

I knew a guy who had set up an Amity company a few years ago, which took him about 4 or 5 months and some pain, but he then got a long term visa and a work permit ? the latter two I think without too much difficulty. Unfortunately he has left Thailand now and I can not ask him about the details.

 

He had an unexpected bonus though. He sold his company (to another US citizen/company) and a major attraction to the buyer was that it was an Amity company and it turned out that it was the business?s major asset which cranked up the sale price well beyond the value of the raw business itself. Unfortunately again I don?t know the details.

 

[gummigut]

Hmmm, global empire? hmmmm

 

Worldwide domination, yahhh. I like that.

 

yahhh, hmmmm.

 

 

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[Guest]

I've been looking at the Amity Treaty incorporation and I think it is the preferred way to go for Americans. I also think there will be some exception (there are many allowed) to the provisions of the world trade agreement that will enable the continuance of the bilateral agreement that makes Amity companies possible. If not, then the rarity factor described above could kick in.

 

J22J

[gummigut]

"the world trade agreement that will enable the continuance of the bilateral agreement that makes Amity companies possible."

 

I think the agreement is a dead duck as the Gov't has already announced to the US that it will not be renewed and the US took the news with aplomb. It will also allow Thaksin to say he's not bowing tot he US, and if anything, is making Thailand more "independent".

 

I understand you think it's the way to go for Americans, but I ask again for specific reasons (and I'm not a tax lawyer, so those implications on a global scale would be a concern, but I'm not thinking that scale). I can arrange to have bylaws written and bank accounts open that would leave me in control but holding less than 50% equity.

 

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[Guest]

I have no insight to add here, just a question and a humorous anecdote.

 

First, the question. Will Amity Treaty companies be grandfathered in or not? I spoke to a Thai lawyer at a major international firm (no names, but "Magic Circle" - based in London) that does our work and he wasn?t so sure that that they will be grandfathered in. What a mess that will be.

 

Second, the anecdote. Even non lawyers here are familiar with the alien business law and the restrictions on foreigners owning land. And they apparantly think this is the natural order of things. Last week one of my staff asked me if I could get him a copy of the U.S.?s ?Alien Business Law.? I am not sure if he believed me when I told him there isn?t one.