Prime Highlights:
- Siam Legal International has released an updated checklist to help American companies under the US–Thailand Treaty of Amity stay fully compliant with Thai regulations.
- The checklist focuses on ongoing post-registration obligations, helping companies avoid penalties and protect their treaty benefits.
Key Facts:
- The US-Thailand Treaty of Amity allows American investors to hold majority or full ownership in Thai companies in eligible sectors.
- Trade between the United States and Thailand exceeds $50 billion annually, with Treaty of Amity companies playing a key role in this economic partnership.
Background:
Siam Legal International has introduced an updated compliance checklist aimed at American companies operating in Thailand under the US Treaty of Amity, as authorities step up oversight of foreign-owned businesses.
The Bangkok-based law firm said the new checklist was developed after identifying a growing gap between company registration and long-term compliance. Many Treaty of Amity companies complete their initial registration correctly, but ongoing legal and regulatory requirements are often missed. This can increase the risk of penalties or even the loss of Treaty of Amity benefits.
The US–Thailand Treaty of Amity, signed in 1966, allows American investors to own most or all of a Thai company in approved business sectors. It also gives US companies the same treatment as local firms in non-restricted industries, provided they continue to meet all legal conditions.
The updated checklist focuses on important tasks after registration, including good corporate management, meeting shareholder and director rules, renewing business licences, filing taxes on time, keeping work permits valid, and submitting required reports to Thai authorities. It also covers areas that authorities have recently focused on, like keeping the correct American ownership levels and ensuring directors meet treaty requirements.
According to Siam Legal International, the resource is designed to help US-owned businesses proactively manage compliance and avoid disruptions caused by regulatory findings. The firm has made the checklist available upon request as part of its advisory services for Treaty of Amity companies.
“Initial registration is only the first step,” said Rex Baay, senior legal advisor at Siam Legal International. Siam Legal International has helped American companies in Thailand for over 20 years with Treaty of Amity, compliance, immigration, and legal services. The updated checklist is released at a time when trade between the United States and Thailand remains strong, with annual trade exceeding $50 billion. Treaty of Amity companies play an important role in this trade by supporting business growth and economic cooperation between the two countries.
US companies that want to review their compliance can contact Siam Legal International to request the checklist or arrange a compliance review to identify and fix potential issues before they become regulatory problems.
