The Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States of America is a bilateral agreement that grants special business privileges to U.S. companies and U.S. nationals operating in Thailand.
Unlike most foreign investors, qualifying U.S. companies and U.S. citizens are permitted to hold up to 100% ownership in Thai companies, even in business sectors that are normally restricted under the Foreign Business Act B.E. 2542 (1999) (“FBA”). As such, the Treaty of Amity serves as a powerful legal mechanism for American investors seeking to establish and operate businesses in Thailand.
The Treaty was signed in 1966 with the objective of promoting trade, investment, and economic cooperation between the two countries. It remains fully effective today and continues to be formally recognized by both the Thai and U.S. governments.
Under the Treaty, qualifying U.S. companies and nationals registering businesses in Thailand are generally entitled to treatment nearly equivalent to Thai nationals, with the exception of certain protected industries, including:
- Communications
- Transportation
- Fiduciary services
- Banking involving deposit-taking activities
- Exploitation of land or other natural resources
- Domestic trade in indigenous agricultural products
For most commercial activities—such as consulting services, trading, technology services, manufacturing, and regional headquarters operations—the Treaty provides a clear legal pathway to operate in Thailand without the foreign ownership restrictions imposed on other foreign companies.
However, Treaty eligibility is not automatic. Companies must strictly comply with shareholder nationality and control requirements and must obtain formal certification from both the U.S. Embassy and the Thai Ministry of Commerce. For this reason, experienced legal counsel is essential.
How H&P Can Assist
At Herrera & Partners (H&P), we take pride in providing comprehensive legal advisory services to foreign investors. If you are considering establishing a business in Thailand but are unsure which legal strategy best suits your objectives, our bilingual team ensures clear communication and a smooth, efficient process from start to finish. We offer practical, legally sound guidance tailored to your specific business needs.
We provide end-to-end support, combining in-depth legal expertise with a hands-on, solution-oriented approach. Our goal is to ensure that our clients maximize the benefits of their legal rights while maintaining full compliance with all applicable laws and regulations.
If you would like to learn more about doing business in Thailand or explore how our firm can assist you, please contact us at the details below:
📧 Email: info@herrera-partners.com
🏢 Office in Bangkok: Herrera and Partners Co., Ltd.
142 Two Pacific Place, 17th Floor, Sukhumvit Road, Klongtoey, Bangkok
📞 Telephone: +66 2 254 5600
