What are the steps and fees to form a Treaty of Amity Company in Thailand?
- As an American, you can set up a new company in Thailand, with all 3 American shareholders (or 2 American and one Thai) with a registered capital of THB 3 M (USD 10,000). This is because the foreign business law dictates the minimum capital to be THB 3 M for a company with majority foreign shareholders. One of the authorized directors will have to be in Thailand at the time of signing the registration application papers. Once the papers are signed, the company will be born the next day. In case you cannot be in Thailand at the time, you will need to have your signatures notarized in the country where you are and have the Thai embassy certify the notarization. – The government fee to register a Thai limited company with Baht 3 Million is about USD 660.
- You will apply with the US Commercial Service for a letter certifying that the shareholders of the company are American and so the company is entitled to the right and protection of Thailand – USA Treaty of Amity and can operate the business in Thailand. It can take 1 – 3 weeks. – The fee to pay the US Commercial Service to issue the certification letter is within USD 100.
- Apply for the Foreign Business Certificate with the Foreign Business Committee, Ministry of Commerce. this usually takes 3-4 weeks for the certificate to be issued. Please note that the director who will be responsible for Thailand operation has to have a non-immigrant business visa to enter Thailand and we will need the copy of his visa. – The government fee for this step is around USD 750.
- Register the new company into the Thai VAT system. This may need only one day or more if you cannot get the papers from your landlord easily. – There is no government fee for this.
- Register the company and its employees into the social security system. It takes one day for the registration and a few days to gather the employees’ information. There is no government fee.
- Get a work permit for an authorized American director so that he can be authorized signatory for the bank accounts and he can sign any papers to bind the company. – This usually takes 10 days. – The government fee for a work permit for one year is about USD 100.
Things you should know:
You do not need to set up a new company to do business in Thailand if you own an American company. (That means its majority shareholders and directors are American.) You will skip step 1 mentioned above and save on the related fees. Just start from Step 2 with your US company’s documents.
Contact MSNA for setting up your Treaty of Amity company in Thailand.