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Emergency Information for American Citizens

Business FAQs
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23 MINUTE READ

Which markets in Thailand offer the greatest opportunities for U.S. companies in Thailand?

Thailand holds numerous opportunities for U.S. companies.  The top markets are covered in the Thailand Country Commercial Guide. 

Where can I find more information on upcoming trade events?

What regulations govern foreigners doing business in Thailand?

The main framework is the Foreign Business Act (FBA) of 1999. Foreigners (non-Thai nationals/companies with 50% or more foreign ownership) are restricted from engaging in many business categories listed in three schedules (Annexes) of the FBA.

Ownership cap: Foreigners may generally own no more than 49% of a Thai company unless:

  • They obtain a Foreign Business License (FBL) from the Ministry of Commerce, or
  • They receive a promotion/approval from the Board of Investment (BOI) or Industrial Estate Authority of Thailand (IEAT), which can allow majority or 100% ownership in promoted sectors.

Scope of restricted activities: Covers a wide range of industries (e.g., retail, services, certain professional practices, agriculture). Schedule 1 is completely prohibited; Schedules 2 and 3 require licenses or exemptions.

Special Provision: U.S.–Thai Treaty of Amity (1966)

The U.S.-Thai Treaty of Amity grants special rights U.S. entities.

  • Rights granted.
    • U.S. citizens and companies that are majority U.S.-owned and controlled can hold up to 100% ownership of a Thai company.
    • They are exempt from the need for a Foreign Business License in most service sectors.
  • Restrictions remain: Treaty companies cannot engage in:
    • Communications
    • Transportation
    • Fiduciary services
    • Banking (involving deposit-taking)
    • Land ownership
    • Exploitation of natural resources
    • Domestic trade in agricultural products
  • Certification process:
    • Must first obtain certification of U.S. ownership from the U.S. Commercial Service at the Embassy.
    • Then apply for recognition of “Treaty of Amity” status with the Thai Ministry of Commerce.
  • Once certified: The company is legally recognized as a U.S. Treaty company and may operate outside the FBA’s usual restrictions.
  • The company must be majority U.S.-owned and controlled.
  • Certification is required from the U.S. Commercial Service (Embassy in Bangkok) and the Thai Ministry of Commerce.
  • Once certified, the company receives “Treaty of Amity status.”

For more information about Treaty of Amity, please contact Office.Letters.Thailand@trade.gov 

Other Pathways (Besides the Treaty)

  • Board of Investment (BOI): Even without the treaty, Americans can apply for BOI promotion if their business is in targeted industries (tech, advanced manufacturing, R&D, etc.). BOI may allow 100% foreign ownership and give tax incentives.
  • Foreign Business License (FBL): If a sector is restricted and not covered by the treaty, Americans still need to apply like other foreigners.

What is the U.S.-Thai Treaty of Amity and how can I register for benefits as an American company?

The US-Thailand Treaty of Amity, also known as the Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States of America, was signed on May 29, 1966, to give special rights and benefits to American citizens who wish to establish their businesses in Thailand. The Treaty of Amity permits American shareholders to own up to 100 percent of branch offices or businesses in Thailand in most sectors. 

Treaty of Amity Company Restrictions 

While the Thailand Treaty of Amity provides the advantages, US citizens are also subject to several restrictions stipulated in the treaty.  The U.S.-Thai Treaty of Amity prohibits American investors from engaging in the following reserved activities:  

  1. Communications;
  2. Transportation;
  3. Fiduciary functions;
  4. Banking involving depository functions;
  5. Land Ownership, Exploitation of land,or  
  6. Other natural resources; and  
  7. Domestic trade in indigenous agricultural products. 

Applicants for protection under the Treaty of Amity must meet the following criteria: 

  • American shareholders must have majority ownership of the shares. 
  • The majority of the directors must be American and/or Thai. 
  • If the Board of Directors contains a director of a third nationality, such director must co-sign with an American/Thai director.  
  • If the major shareholder is an American company, the company must be located in the U.S. territories. 
  • The criteria must be met until the ultimate ownership, meaning American shareholders must have majority ownership at all levels of ownership from the entity applying to the ultimate parent company. 

For more information about Treaty of Amity, please contact Office.Letters.Thailand@trade.gov 

Which free trade agreements has Thailand entered into?

As a signatory to the General Agreement on Tariffs and Trade and a member of the WTO, Thailand applies custom valuation in accordance with the WTO Customs Valuation Agreement. Duties are levied on a specific or an ad valorem basis, whichever is higher. The applied ad valorem duties range between 0 and 80 percent. Exemptions from import duties are available on goods as prescribed in the Customs Tariff Decree. Preferential duty rates apply to goods imported from countries with which Thailand has free trade agreements (FTA).

Currently, Thailand has FTAs with the following countries:

  • ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, and Vietnam)
  • Regional Comprehensive Economic Partnership (RCEP, which includes ASEAN member states plus China, Korea, Japan, Australia, and New Zealand)
  • Australia
  • Chile
  • India
  • Japan
  • New Zealand
  • Peru
  • Sri Lanka
  • EFTA (Iceland, Liechtenstein, Norway, and Switzerland)

Also, as a member of ASEAN, Thailand has preferential trade agreements with the following countries:

  • Australia and New Zealand
  • China
  • Hong Kong
  • India
  • Japan
  • South Korea

Where can I find more information about buying goods and service from Thailand?

These websites can provide more information about how to purchase goods from Thailand.

Economic Opportunity, Evergreen