Key takeaways
- —US citizens can own up to 100% of a Thai company under the Treaty of Amity — other foreigners are capped at 49%
- —The treaty covers most commercial sectors: consulting, tech, trading, hospitality
- —It does not cover land ownership, banking, communications or agricultural trade
- —You still need a work permit and Non-Immigrant B visa to legally work in your own company
- —Standard Thai corporate tax (20%) and VAT (7%) apply in full — no tax advantages
Most foreigners who want to run a business in Thailand run into the same wall. Under the Foreign Business Act, non-Thai nationals are limited to owning 49% of a company in most sectors. That means finding a Thai partner who holds the majority stake — with all the trust, legal and control risks that entails.
US citizens have a way around this. It is called the Treaty of Amity and Economic Relations, and it has been in force since 1968.
What the Treaty of Amity actually is
The US-Thailand Treaty of Amity and Economic Relations was signed in 1966 and came into force in 1968. Its core principle is national treatment — meaning American citizens and US-majority-owned companies are treated the same as Thai businesses in most commercial sectors.
In practice, this means US citizens can own up to 100% of a Thai company without needing a Thai partner, without applying for a Foreign Business License in most cases, and without the ownership restrictions that apply to every other foreign nationality.
It is one of the most valuable bilateral agreements for American investors in Thailand — and most people planning retirement there have never heard of it.
What the treaty covers
- ✓Consulting and professional services
- ✓Technology and software development
- ✓Trading and e-commerce
- ✓Hospitality and service businesses (licensing, sector restrictions and work permits still need separate legal review)
- ✓Education and training
- ✓Marketing and advertising services
For US retirees thinking about a second act — whether that is a café, a consulting practice, a digital business or a small agency — the treaty removes the ownership structure problem that trips up every other foreign national.
What the treaty does not cover
- ✗Land ownership — this restriction applies to all foreign nationals regardless of the treaty. Long-term leases, superficies rights or condo ownership within the 49% foreign quota are the alternatives.
- ✗Domestic trade in indigenous agricultural products
- ✗Communications and transport
- ✗Banking and finance
- ✗Extraction of natural resources
- ✗Tax advantages — standard Thai corporate taxes apply in full (corporate income tax 20%, VAT 7%)
- ✗Work permits and visas — you still need a Non-Immigrant B visa and a work permit to legally work in your own Thai company
How to actually set up a Treaty of Amity company
Step 1
Register a Thai limited company
Register with the Department of Business Development. The company must be majority US-owned from the start — at least 51% of shares held by American citizens or a US-majority company. At least 50% of directors must be American or Thai nationals.
Step 2
Apply for Treaty of Amity certification
Apply through the US Commercial Service at the US Embassy in Bangkok. Required documents: company registration documents, shareholder passport copies, proof of US citizenship, and a business plan describing your intended activities. Embassy fee: approximately $365.
Step 3
Submit to Thai Department of Business Development
Submit the Embassy certification to receive a Foreign Business Certificate. The full process typically takes 6–12 weeks.
Capital requirements
- ·Minimum registered capital: THB 2,000,000 (~$56,000) for businesses not restricted under the FBA
- ·THB 3,000,000 (~$84,000) for FBA-restricted sectors
- ·Each foreign work permit requires THB 2,000,000 in registered capital and 4 full-time Thai employees per foreign employee
Get legal advice before you start. The documentation requirements are precise and errors cause delays.
Treaty of Amity vs BOI — which route is right for you?
| Factor | Treaty of Amity | BOI Promotion |
|---|---|---|
| Who it is for | US citizens only | Any nationality |
| Ownership | Up to 100% | Up to 100% (varies by tier) |
| Tax benefits | None | Yes — CIT exemptions (3–8 years), import duty relief |
| Work permit ratio | 4 Thai staff per foreigner | More flexible in higher tiers |
| Processing time | 6–12 weeks | 3–6 months typically |
| Best for | Ownership certainty without nationality restriction | Tax-driven investment in promoted sectors |
For most US retirees considering a small business or consulting setup, the Treaty of Amity is the simpler and faster route. BOI is more suited to larger capital commitments where tax incentives justify the longer process.
The honest bottom line
The Treaty of Amity is a genuine legal advantage that most US citizens planning retirement in Thailand do not know they have.
It does not make running a business in Thailand simple. Thai taxes, visa rules, work permits, employee ratios and capital requirements all still apply. But it removes the ownership problem — the one that forces every other foreign national into a Thai-majority structure or a complex workaround.
If you are a US citizen over 50 and you want to build something in Thailand, understanding this treaty is the right starting point.
Thinking about retiring to Thailand?
Start by checking whether your income, savings and pension make the move financially viable — before committing to any business plans.
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Start my free assessment →Frequently asked questions
Can a US citizen use the Treaty of Amity on a retirement visa?
No. The Treaty of Amity gives you ownership rights, but running a business requires a Non-Immigrant B visa and a work permit. A retirement visa does not permit you to work — even in a company you fully own.
Does the Treaty of Amity cover online businesses or remote work?
It covers legally registered Thai companies engaged in digital and technology activities. If you are working remotely for a US employer without registering a Thai company, the Work-from-Thailand LTR category is more relevant.
Can I open a restaurant or café under the Treaty of Amity?
Hospitality is generally covered by the treaty. However, owning land for premises is not — you would need a long-term lease. And you would still need a work permit to legally manage the business day-to-day.
Is the Treaty of Amity still active in 2026?
Yes. The treaty remains in full force. In 2025, Thailand and the US announced a new framework for a reciprocal trade agreement focused on digital trade and investment.
Do I need a lawyer to set up a Treaty of Amity company?
In practice, yes. The documentation requirements are precise and errors cause delays. Engaging a Thai law firm or specialist service familiar with the treaty process is strongly recommended.
ReloComp is a relocation planning and decision-support tool. This article is for general information only and does not constitute legal, tax, immigration, investment or business advice. Treaty of Amity certification, company registration, work permits, tax rules and BOI requirements can change. Always consult a qualified Thai lawyer, tax adviser and immigration adviser before forming or operating a business in Thailand.