Is Work Permit in Thailand Necessary for US-Thai Amity Treaty Companies?

 

To know whether you will need a Work Permit for Amity Treaty Company in Thailand, you must know about the treaty relations. American individuals and businesses are allowed to own majority (more than 51%) shares of a Thai Limited Corporation through a US Treaty of Amity Company. The US Treaty of Amity also allowed American businesses to operate on the same terms as Thai businesses and exempted them from the majority of the foreign investment limitations set by the Alien Business Law of 1972.

The Treaty of Amity and Economic Relations between the Kingdom of Thailand and the United States of America, often known as the US-Thai Treaty of Amity, was signed on May 29, 1966, to grant special rights and privileges to American residents who sought to open enterprises in Thailand.

While having a huge advantage over other foreign individuals or businesses, US Amity Treaty Companies are not permitted to engage in the following activities, which are only permitted for businesses with majority Thai owners.

• Communications
• Transportation
• Fiduciary functions
• Banking involving depository functions
• Land Ownership, Exploitation of land, or
• Other natural resources; and
• Domestic trade in indigenous agricultural products.

Do You Need a Work Permit for Amity Treaty Company in Thailand?

The 4 Thais to 1 Foreign Worker (Work Permit) rule does not exempt US Amity Treaty companies. Employing four Thai nationals, covering their Social Security costs, VAT registration, and having at least THB 2 million in registered capital are all mandatory. Additionally, for a US Amity Treaty company to sponsor employees, a Non-B Visa and a Work Permit is also necessary. 

The registered capital is two million Baht. Additionally, you only need two Thai employees if you already have a one-year extension based on marriage.

Therefore, your thought that the US-Thai Amity Treaty company can enjoy a Work Permit exemption is completely wrong!

Are you planning to start a US-Thai Amity Treaty Company in Thailand?

Please note down the following basic requirements:

• American citizens or an American sole proprietorship, partnership, representative office, branch office, joint venture, or limited company must hold at least 51% of the shares. 
• At least half of the directors must be Americans. 
• The company’s ultimate beneficiary must be an American.

Matters may be different in your case. It is because, whenever a Treaty or Bilateral Trade Agreement guides a company registration procedure, it becomes very case-sensitive. The same is applicable for Double Tax treaties. Therefore, you must seek professional guidance in this regard before you expedite your US-Thai Amity Treaty Company registration process. A reliable corporate law firm in Thailand can guide you best on your need for a work permit for Amity Treaty company in Thailand.

Feel free to seek our free email consultation at officer@konradlegal.com. Get in touch with our team of corporate law professionals will assist you thoroughly in the process. In this regard, our scope of services, although not limited to, includes the following:

Work Permit in Thailand from Board of Investment (BOI)

 

The Board of Investment (BOI) is a government agency in Thailand that promotes and facilitates investment in the country. If you are looking to obtain a work permit in Thailand through BOI, it is typically related to employment with a company that has received BOI privileges and incentives. Through a Board of Investment (BOI) approved company, you can apply for a business visa in Thailand along with a work permit to start a business and relocate to Thailand. This article will guide you through the process of applying for and obtaining a BOI Thailand Work Permit.

Why Apply for BOI Thailand Work Permit?

A firm approved by Thailand’s BOI may have 100% foreign ownership and do physical business in Thailand. Whereas, conventional Thai companies have foreign ownership restrictions to a maximum of 49%. In addition, depending on location and type, a BOI firm may qualify for a 0% corporate tax rate for the first 8 years of operation as well as an exemption from V.A.T. for importing machinery.

Unlike conventional Thai companies, BOI companies are not constrained to a 4:1 ratio. Therefore, this makes it easier for BOI-promoted companies to bring in foreign employees. Owing to this reason, the process of obtaining a work permit becomes easier.

In the process of obtaining a BOI Thailand Work Permit, your pre-requisite is holding a Non-immigrant B Visa. You can apply for the same from Royal Thai Embassies or Royal Thai Consulates located in your country.

Without this, obtaining a BOI work permit in Thailand as a foreigner is not possible. Note that, the exact requirements may vary depending on your specific situation and the policies in place at the time of your application. 

Steps to obtain a BOI Thailand Work Permit: 

Find Employment

You need to secure a job with a company that has received BOI privileges. BOI privileges are often granted to companies operating in certain industries, such as manufacturing, technology, and services. Make sure your potential employer is eligible for these privileges.

Apply for a Non-Immigrant Visa

Once you have a job offer from a BOI-promoted company, you’ll need to apply for a Non-Immigrant Visa (Type B) at a Thai embassy or consulate in your home country. You will need various documents, including an employment contract and a letter from the BOI-promoted company confirming your employment.

Arrive in Thailand

After receiving your Non-Immigrant Visa, you can enter Thailand. You must do this within a certain timeframe after obtaining the visa.

Submit Work Permit Application

Your employer will need to submit a work permit application on your behalf to the Department of Employment within the Ministry of Labor in Thailand. This application will include various documents such as your employment contract, educational qualifications, and medical certificate.

Medical Checkup

You may be required to undergo a medical checkup at an approved hospital or clinic in Thailand. This is to ensure you are in good health and not carrying any infectious diseases.

Police Clearance Certificate

You may also need to provide a police clearance certificate from your home country or the country where you have lived in the past.

Work Permit Approval

Once your work permit application is approved, you will receive a work permit book.

Notification of Stay

You will need to report your place of residence to the local immigration office within 24 hours of your arrival in Thailand and whenever you change your address.

Renewal and Reporting

Work permits typically need to be renewed annually. You and your employer will need to ensure that all reporting requirements are met throughout your employment in Thailand.

Please note that immigration and work permit requirements in Thailand can change, and it’s essential to check with the Thai Embassy or Consulate in your home country or consult with a legal advisor who specializes in Thai immigration and labor laws for the most up-to-date information and guidance regarding the BOI work permit process.

The process can be complex and time-consuming, so it’s advisable to seek professional assistance to navigate the application successfully. Therefore, once you receive a job offer from a prospective BOI company in Thailand, you can contact us for the rest of the procedure. Email us at officer@konradlegal.com to steadfast your process of obtaining a BOI Thailand work permit.