Educational Information Only

The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.

Business in Thailand

Treaty of Amity (US Citizens)

How the US-Thailand Treaty of Amity and Economic Relations B.E. 2509 (1966) lets US citizens and majority US-owned companies operate in Thailand with national treatment, plus its limits and the dual-track application process.

Overview

The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand, signed on 29 May 1966 (B.E. 2509 (1966)), gives US citizens and majority US-owned companies near-national treatment when doing business in Thailand. Treaty-protected entities may hold up to 100% of the shares in most companies and conduct most categories of business — including services that would otherwise sit on Schedule 3 of the Foreign Business Act B.E. 2542 (1999). The treaty does, however, carve out specific reserved sectors and requires a two-step certification: a Foreign Commercial Service letter from the US Embassy in Bangkok, followed by a Foreign Business Certificate (FBC) from the Department of Business Development (DBD / กรมพัฒนาธุรกิจการค้า).

Key Points:

Treaty of Amity B.E. 2509 (1966) — Treaty of Amity and Economic Relations between USA and Thailand, signed 29 May 1966, in force from 8 June 1968
Provides 'national treatment' for US individuals and majority-US juristic persons across most business activities
Exempts qualifying entities from most Foreign Business Act B.E. 2542 (1999) Schedule 3 restrictions
Reserved (excluded) sectors: communications, transport, fiduciary functions, banking involving depository functions, exploitation of land and natural resources, and domestic trade in indigenous agricultural products
Requires at least 50% US ownership AND majority US directors
Application is sequential: (1) Foreign Commercial Service (FCS) of the US Embassy issues a certification letter, then (2) DBD issues a Foreign Business Certificate under Section 11 of the FBA

What the Treaty Covers

Under Article IV of the Treaty of Amity B.E. 2509 (1966), US nationals and companies receive national treatment in business activities, with limited exceptions.

Most service businesses otherwise restricted under FBA Schedule 3 (consulting, retail above capital thresholds, advertising, etc.)
Wholesale and retail trade, subject to ordinary capital requirements
Most professional services (subject to separate professional-licensing laws)
Holding companies and management services to affiliates
Manufacturing activities not otherwise restricted

Reserved Sectors (Treaty Carve-Outs)

Six sectors are explicitly excluded from treaty protection and remain subject to the Foreign Business Act B.E. 2542 (1999) and sector-specific laws.

Communications: telecoms, broadcasting, telegraphy
Transport: domestic air, land, and water transport
Fiduciary functions: trustee, depositary, custodian roles
Banking involving depository functions (regulated under the Financial Institutions Business Act B.E. 2551 (2008) / 2008)
Exploitation of land or other natural resources
Domestic trade in indigenous agricultural products

Two-Step Application Process

Treaty protection is not automatic — it must be certified and then registered with the Department of Business Development.

Step 1: Incorporate (or identify) a Thai company with at least 50% US shareholding and majority US directors
Step 2: Apply to the Foreign Commercial Service (FCS) of the US Embassy in Bangkok with company documents, shareholder passports, and proof of US citizenship/incorporation
Step 3: FCS issues a certification letter (typically 4-6 weeks)
Step 4: Submit the FCS letter plus FBC application to the DBD's Foreign Business Office under Section 11 of the FBA
Step 5: DBD issues the Foreign Business Certificate (typically 30-60 days)
Step 6: Maintain US-majority ownership and directorship throughout the life of the certificate

Relevance for Foreign Nationals

For US passport holders and US-incorporated companies, the Treaty of Amity is often the cheapest and fastest route to 100% foreign-owned operation in Thailand, especially for service businesses that do not fit BOI promotion criteria. It does not, however, override sector-specific licensing (telecoms, banking, professional services), nor does it exempt the company from work-permit, tax, or labour-law obligations. Citizens of other countries cannot rely on the treaty even if they own US-citizen passports as secondary documents — the controlling shareholders must be bona fide US nationals.

Treaty of Amity (US Citizens)

Overview

Key Points:

What the Treaty Covers

Reserved Sectors (Treaty Carve-Outs)

Two-Step Application Process

Relevance for Foreign Nationals

Related Topics

Need Professional Advice?

When Legal Representation Matters