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Translation and Legalization in Thailand

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Translation and Legalization in Thailand. In Thailand, translation and legalization are essential procedural steps in preparing foreign documents for official use. Whether one is applying for a marriage registration, visa, property transfer, court submission, or corporate registration, the Thai authorities require that all foreign-language documents be accurately translated into Thai and properly legalized before they are recognized as valid.

This article provides a detailed legal and procedural analysis of translation and legalization in Thailand, including the relevant institutions involved, methods of authentication, types of documents typically requiring this process, and practical pitfalls to avoid.

1. Legal Basis and General Requirements

1.1 Governing Law

There is no single statute exclusively regulating translation and legalization in Thailand. However, relevant legal authority stems from:

  • Civil Procedure Code (for submission of foreign-language documents to Thai courts)

  • Immigration Act B.E. 2522 (1979) (for visa and residency applications)

  • Land Code, Commercial and Civil Code, and Ministry of Interior regulations (for business and property matters)

  • Ministerial regulations from the Ministry of Foreign Affairs (MOFA) and the Ministry of Justice

1.2 Principle of Recognition

Thai governmental bodies only accept documents in the Thai language, unless otherwise explicitly permitted. Thus, all foreign-language documents must be:

  1. Translated accurately into Thai.

  2. Certified for accuracy (in most cases by an authorized translator or sworn translator).

  3. Legalized to verify the authenticity of both the original document and the translation.

2. Three-Tier Legalization Process

Legalization in Thailand generally follows a three-step process for foreign-origin documents:

2.1 Step 1: Authentication by the Issuing Country

  • The original document must be authenticated by the foreign government (usually the Ministry of Foreign Affairs or equivalent).

  • In countries that are parties to the Hague Apostille Convention, an apostille may be used in place of bilateral legalization.

  • Thailand is not a party to the Apostille Convention, so apostilles are not accepted by Thai authorities. Therefore, bilateral authentication remains necessary.

2.2 Step 2: Translation into Thai

  • Must be done by a professional or certified translator.

  • For submission to Thai courts or government offices, translations may require certification by:

    • A licensed translator registered with the Thai Ministry of Justice, or

    • A translation company recognized by the Thai government

2.3 Step 3: Legalization by the Thai Ministry of Foreign Affairs (MOFA)

  • The original and translated documents must be submitted to MOFA’s Legalization Division.

  • MOFA verifies:

    • The authenticity of the foreign document (via consular confirmation or international liaison)

    • The accuracy of the Thai translation

  • Once approved, MOFA affixes a certification stamp to the document, making it legally valid for use in Thailand.

3. Domestic Legalization of Thai Documents for Use Abroad

When Thai documents need to be used overseas, the process is reversed:

  1. The Thai document (e.g., birth certificate, marriage certificate, company registration) is translated into the destination country’s language.

  2. The translation is certified by MOFA.

  3. The certified document is submitted to the embassy or consulate of the destination country in Thailand for final authentication.

This process is essential for Thai nationals applying for visas, citizenship, or marriage abroad.

4. Common Document Types Requiring Legalization

Personal and Civil Documents

  • Birth, marriage, divorce, and death certificates

  • Passports and ID cards

  • Criminal record checks (police clearance certificates)

  • Educational transcripts and diplomas

  • Affidavits and declarations of single status

Business and Corporate Documents

  • Certificate of Incorporation

  • Articles of Association

  • Business licenses

  • Power of attorney

  • Contracts and agreements

  • Shareholder resolutions

Legal and Court Documents

  • Judgments and court orders

  • Notarized affidavits

  • Documents used in litigation or arbitration proceedings

5. Institutional Roles and Points of Contact

5.1 Ministry of Foreign Affairs (MOFA) – Legalization Division

  • Main agency responsible for final legalization of all documents.

  • Offices located at:

    • Chaeng Watthana Government Complex (main)

    • MFA’s Consular Office on Sathorn Road (limited services)

5.2 Royal Thai Embassies and Consulates

  • Provide authentication services for Thai documents sent abroad.

  • Some foreign embassies in Thailand also verify their own country’s documents before MOFA submission.

5.3 Thai Courts and Government Agencies

  • Accept only legally translated and MOFA-legalized documents.

  • May require notarization for specific proceedings, especially in family or commercial law.

6. Notarization vs. Legalization: What’s the Difference?

  • Notarization is performed by a notary public, certifying the signature and identity of the signatory. In Thailand, notary services can only be provided by attorneys licensed by the Thai Lawyers Council and registered as Notarial Services Attorneys.

  • Legalization, by contrast, is the government’s confirmation of the authenticity of a document or its translation, often through MOFA and/or a consulate.

In many cases, notarization and legalization must both be performed, especially for documents submitted to foreign embassies or used in court proceedings.

7. Timing, Fees, and Processing

7.1 MOFA Legalization Fees

  • THB 200 per document (standard service, 3 business days)

  • THB 400 per document (express service, 1 business day)

7.2 Translation Costs

  • Vary by language and complexity.

  • For legal or technical documents, professional rates range from THB 500 to THB 2,000 per page.

7.3 Embassy or Consulate Fees

  • Charged separately and vary by country (e.g., USD 30–60 per document in many embassies).

8. Risks and Common Mistakes

  • Submitting apostilled documents to Thai authorities: Thailand is not a Hague signatory.

  • Incorrect or poorly translated documents: Even if the translation is close, MOFA may reject it for inconsistency with the original.

  • Using unlicensed translators: For certain legal or court uses, only certified translators are accepted.

  • Failure to legalize both the original and translation: Both components must be submitted together for MOFA processing.

  • Assuming embassy notarization alone is sufficient: Most Thai authorities still require MOFA legalization regardless of embassy endorsement.

9. Practical Recommendations

  • Use translators familiar with legal and bureaucratic terminology.

  • Verify whether your receiving institution (court, immigration, school) requires a certified translation or embassy-level authentication in addition to MOFA legalization.

  • Keep digital and certified copies of legalized documents; they may be needed for future filings.

  • Consider working with a registered legal or visa service provider if multiple documents and jurisdictions are involved.

Conclusion

Translation and legalization in Thailand are essential formalities embedded in both civil and administrative law procedures. Whether handling immigration matters, court evidence, or commercial transactions, failure to comply with proper translation and legalization protocols can render documents inadmissible or invalid.

Navigating the system requires legal precision, institutional awareness, and attention to procedural details, especially when dealing with cross-border documents. With Thailand’s increasing integration into international commerce, law, and migration, the role of document legalization will continue to expand, making it a core element of legal compliance in both personal and corporate affairs.

Foreign Business Act

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The Foreign Business Act B.E. 2542 (1999) (FBA) is the primary legislation governing foreign investment and business activities in Thailand. It establishes clear restrictions on foreign ownership, defines regulated industries, and outlines licensing requirements for foreign entities seeking to operate within the country.

Understanding the Foreign Business Act (FBA) is essential for foreign investors, as non-compliance can lead to severe legal consequences, including fines, imprisonment, and forced business dissolution.

This guide provides an in-depth legal analysis of the Foreign Business Act, covering restricted industries, foreign ownership structures, licensing procedures, legal loopholes, and strategies for compliance.

1. Legal Framework Governing Foreign Business Operations

1.1 Purpose of the Foreign Business Act

The FBA B.E. 2542 (1999) was enacted to:
✔ Protect Thai industries from excessive foreign control.
✔ Define business activities that require government oversight.
✔ Provide legal pathways for foreign investment in restricted sectors.
✔ Encourage regulated foreign participation in Thailand’s economy.

The Department of Business Development (DBD) under the Ministry of Commerce is the primary regulatory body enforcing the FBA.

1.2 Definition of a “Foreign Business”

Under the FBA, a business is considered foreign if:
✔ A non-Thai individual or entity holds 50% or more of the shares in a company.
✔ The company is registered outside Thailand but conducts business in the country.
✔ A majority of directors or authorized signatories are foreign nationals.

This classification determines whether a company must apply for a Foreign Business License (FBL) or qualify for an exemption under investment promotion programs.

2. Business Activities Restricted Under the Foreign Business Act

The FBA divides restricted industries into three categories (Lists 1, 2, and 3) based on the level of restriction and the possibility of obtaining permission for foreign ownership.

2.1 List 1: Activities Absolutely Prohibited to Foreigners

Foreigners cannot engage in these industries under any circumstances, as they are considered essential to national security, cultural identity, or strategic resources.

Restricted Activities (List 1)
Media (newspapers, radio, TV broadcasting)
Land ownership and land trading
Agriculture, forestry, and animal husbandry
Fisheries and marine life conservation
Traditional Thai handicrafts and art trade

Even BOI promotion or government approval cannot override these restrictions.

2.2 List 2: Restricted Sectors Requiring Cabinet Approval

Foreigners may operate in these industries if Cabinet approval is granted and at least 40% of the company shares are Thai-owned.

Restricted Activities (List 2)
National defense industries
Domestic transportation (air, rail, and maritime)
Mining, energy exploration, and mineral extraction
Businesses affecting Thai culture and heritage

Due to bureaucratic complexities, Cabinet approvals for List 2 businesses are rarely granted to foreign investors.

2.3 List 3: Restricted Sectors Requiring a Foreign Business License (FBL)

Foreigners can operate in these industries if they obtain an FBL from the Department of Business Development (DBD).

Restricted Activities (List 3)
Legal, accounting, and architecture services
Retail and wholesale trade (if capital is below THB 100 million per store)
Hotel business (except for hotel management services)
Advertising and media production
Brokerage and agency businesses
Construction (except for government projects)

Foreign investors can apply for an FBL if they can demonstrate economic benefits to Thailand, such as job creation, technology transfer, or infrastructure investment.

3. Legal Pathways for Foreign Investors to Operate in Thailand

Despite the FBA’s restrictions, foreign investors have several legal options to establish and operate businesses in Thailand:

3.1 Obtaining a Foreign Business License (FBL)

✔ Required for List 3 businesses.
✔ Applications are submitted to the DBD, Ministry of Commerce.
✔ Approval depends on economic impact assessments.
✔ Processing time: 3–6 months, depending on the industry.

3.2 Board of Investment (BOI) Promotion

✔ BOI-approved companies are exempt from foreign ownership restrictions.
✔ Benefits include:

  • 100% foreign ownership approval.
  • Corporate tax exemptions for up to 8 years.
  • Work permits and visa privileges for foreign executives.
  • Import duty exemptions on machinery and raw materials.

Industries eligible for BOI promotion include:
✔ Technology, automation, and digital economy.
✔ Renewable energy and environmental industries.
✔ Advanced manufacturing and high-tech production.
✔ Research and development (R&D) sectors.

3.3 U.S.-Thailand Treaty of Amity (For U.S. Investors Only)

✔ Allows U.S. companies to own 100% of a Thai business.
✔ No need for a Foreign Business License.
✔ Applies to most industries, except those in List 1 and List 2.

3.4 Thai-Registered Joint Ventures

✔ Foreigners can establish a joint venture with a Thai partner (owning at least 51%).
✔ Must be a genuine ownership arrangement, as nominee shareholding is illegal under Thai law.

3.5 Representative Offices and Branch Offices

✔ Representative Offices:

  • Allowed for market research, liaison activities, and sourcing.
  • Cannot generate revenue.

✔ Branch Offices:

  • Allowed to engage in commercial activities but require an FBL.

4. Penalties for Violating the Foreign Business Act

Non-compliance with the FBA carries severe penalties, including:

Violation Penalty
Operating a restricted business without an FBL Up to 3 years imprisonment and/or THB 1 million fine
Using Thai nominee shareholders to bypass foreign ownership rules Up to 3 years imprisonment and/or THB 1 million fine
Violating BOI or Treaty of Amity privileges Revocation of business license and deportation

The Thai government actively monitors foreign business structures, and fraudulent nominee arrangements are highly scrutinized.

5. Conclusion

The Foreign Business Act (FBA) is a crucial regulation defining foreign participation in Thailand’s economy. While the law imposes restrictions, it also provides legal pathways for foreign investors through BOI incentives, joint ventures, FBL applications, and international treaties.

Foreign entrepreneurs and corporations must carefully structure their business entities to comply with the FBA while maximizing investment opportunities. Given the complexity of Thai business regulations, working with legal experts and business consultants is essential to ensure full compliance and long-term business success in Thailand.

Property Mortgage in Thailand

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A property mortgage in Thailand provides financing options for individuals looking to purchase real estate, whether for residential or investment purposes. While Thai nationals have relatively easy access to mortgage loans, foreigners face additional restrictions due to regulations governing land and property ownership. However, various financial solutions are available, including loans from local Thai banks, foreign bank branches, and developer-backed financing.

1. Who Can Apply for a Property Mortgage in Thailand?

1.1 Thai Nationals and Permanent Residents

  • Full access to mortgage financing from Thai banks.
  • Flexible repayment terms, typically up to 30 years.
  • Lower interest rates compared to foreign buyers.

1.2 Foreigners

Foreigners face more restrictions but can still obtain property financing under specific conditions:

  • Condominiums: Foreigners can obtain mortgages for condos if the property complies with the foreign ownership quota (not exceeding 49%).
  • No Land Financing: Foreigners cannot directly mortgage land but may lease it for long-term use.
  • Proof of Income: Foreign applicants must provide documented proof of stable income and financial statements.

2. Mortgage Providers in Thailand

2.1 Thai Banks

Some Thai banks offer mortgage loans to foreigners, but most require:

  • A valid work permit in Thailand.
  • Proof of employment or business activity in the country.
  • Loans in Thai baht (THB) only.

Popular Thai banks offering mortgages include:

  • Bangkok Bank
  • Siam Commercial Bank (SCB)
  • Krungsri Bank

2.2 Offshore Financing

Foreigners who cannot meet local banking requirements may opt for offshore banks or private financing solutions from foreign financial institutions. These loans are typically issued in USD or other foreign currencies.

2.3 Developer Financing

Some real estate developers offer installment-based payment plans or short-term financing for foreign buyers, particularly for condominiums and new projects.

3. Key Mortgage Terms and Conditions

3.1 Loan-to-Value Ratio (LTV)

  • For Thai nationals, LTV can reach 80%–90% of the property’s appraised value.
  • Foreigners are usually offered a lower LTV, around 50%–70%.

3.2 Interest Rates

  • Mortgage interest rates in Thailand are generally variable, based on the Minimum Retail Rate (MRR) or Minimum Loan Rate (MLR).
  • Fixed-rate periods may apply for the first 3–5 years, followed by variable rates.

3.3 Repayment Period

  • Typically, up to 30 years for Thai nationals.
  • Foreigners may have shorter repayment terms, usually 10–15 years.

4. Application Process for a Property Mortgage

Step 1: Initial Assessment

  • Check eligibility with the chosen bank.
  • Gather required documents, such as proof of income, financial statements, and property details.

Step 2: Submit Application

  • Submit a loan application along with necessary documents.
  • The bank will assess your creditworthiness, employment history, and income stability.

Step 3: Property Valuation

  • The bank conducts an independent valuation to determine the property’s market value.

Step 4: Loan Approval and Contract Signing

  • Once approved, the bank issues a loan agreement and outlines the terms and repayment schedule.

Step 5: Registration at the Land Department

  • The loan is registered with the Land Department, and the bank holds the property as collateral.

5. Common Challenges and How to Overcome Them

5.1 Documentation Requirements

Foreigners may struggle to meet the documentation standards required by Thai banks. Solution: Work with a real estate lawyer and provide accurate, translated financial documents.

5.2 Currency Risks

Loans in foreign currencies can expose borrowers to currency exchange risks. Solution: Choose a loan in Thai baht if you have long-term financial commitments in Thailand.

5.3 Shorter Loan Terms for Foreigners

Shorter loan terms result in higher monthly repayments. Solution: Negotiate terms with multiple banks and compare offers to secure the best deal.

6. Legal Considerations

  • Foreign Ownership Restrictions: Foreigners can only own condominiums, not land. Ensure that the property is part of the foreign ownership quota.
  • Mortgage Registration Fee: Typically 1% of the loan amount.
  • Legal Advice: Consult a real estate lawyer to review the mortgage contract and assist with registration at the Land Department.

7. Conclusion

A property mortgage in Thailand is an attractive option for both locals and foreigners seeking to invest in real estate. While foreigners face additional restrictions and requirements, careful planning and the right financing solution can help secure a dream home or investment property. It is crucial to understand the terms, legal requirements, and risks involved to make an informed decision. Working with experienced financial institutions and legal advisors can ensure a smooth and secure mortgage process.

Thai Business Partnerships

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Thai business partnerships are governed by the Civil and Commercial Code (CCC), offering entrepreneurs flexible and straightforward structures to establish their ventures. Partnerships are widely used in small to medium-sized enterprises (SMEs), as they allow for collaborative management, shared responsibilities, and pooled resources. However, different types of partnerships come with distinct legal implications and operational requirements.

1. Types of Business Partnerships in Thailand

1.1 Ordinary Partnerships

  • Definition:
    • Unregistered partnerships where partners share unlimited liability for debts and obligations.
  • Key Features:
    • Informal, easy to establish, and low in operational complexity.
  • Usage:
    • Suitable for small, short-term projects or informal ventures.

1.2 Registered Ordinary Partnerships

  • Definition:
    • Partnerships registered with the Department of Business Development (DBD), gaining legal personality.
  • Key Features:
    • Partners retain unlimited liability.
    • Registration enhances credibility with financial institutions and third parties.
  • Usage:
    • Preferred for formal ventures needing recognition and legal standing.

1.3 Limited Partnerships

  • Definition:
    • A partnership with two types of partners: general partners (with unlimited liability) and limited partners (liable only to the extent of their investment).
  • Key Features:
    • Legal registration with the DBD is required.
    • Limited partners cannot participate in management.
  • Usage:
    • Common for partnerships seeking external investors or risk-limiting structures.

2. Formation Process

  1. Draft a Partnership Agreement:
    • A well-defined agreement is essential, covering capital contributions, profit-sharing arrangements, roles, and responsibilities.
  2. Register with the DBD (if applicable):
    • Submit required documents such as partner identification, capital structure, and business objectives.
  3. Obtain a Tax Identification Number:
    • Required for partnerships engaging in taxable activities.
  4. Comply with Labor Laws:
    • Partnerships employing workers must adhere to Thai labor regulations, including minimum wage and social security contributions.

3. Taxation and Compliance

  1. Ordinary Partnerships:
    • Taxed at the partner level unless registered.
  2. Registered Partnerships and Limited Partnerships:
    • Subject to corporate income tax and annual financial reporting.
  3. VAT Registration:
    • Required if annual revenue exceeds 1.8 million THB.

4. Foreign Participation in Partnerships

4.1 Restrictions under the Foreign Business Act (FBA):

  • Foreigners are restricted in certain industries unless they qualify for exemptions or special promotions.

4.2 BOI Promotions:

  • Partnerships in industries promoted by the Board of Investment (BOI) enjoy relaxed restrictions, tax incentives, and other benefits.

4.3 Nominee Structures:

  • The use of Thai nominees to bypass ownership restrictions is illegal and subject to penalties.

5. Advantages of Partnerships

  1. Ease of Formation:
    • Partnerships require less administrative work compared to corporations.
  2. Flexible Management:
    • Partners can structure management roles and responsibilities to suit their expertise.
  3. Resource Pooling:
    • Partnerships allow for shared financial and human resources, reducing individual burdens.
  4. Cost-Effectiveness:
    • Partnerships incur fewer regulatory and operational costs than larger business structures.

6. Risks and Challenges

  1. Unlimited Liability:
    • General partners are personally liable for debts and obligations, exposing their assets to risks.
  2. Disputes Among Partners:
    • Disagreements can arise over profit distribution, management, or strategic decisions.
  3. Foreign Ownership Restrictions:
    • Non-Thai partners face limitations in certain sectors under the FBA.
  4. Lack of Continuity:
    • Unregistered partnerships dissolve upon a partner’s death or withdrawal unless otherwise stated in an agreement.

7. Key Considerations for Establishing a Partnership

  1. Legal Advice:
    • Engage a qualified lawyer to draft partnership agreements and ensure compliance with Thai regulations.
  2. Due Diligence:
    • Verify the qualifications and reputation of potential partners.
  3. Risk Mitigation:
    • Consider a limited partnership structure to limit liability for specific partners.
  4. Compliance with Thai Laws:
    • Ensure all registration, tax, and labor requirements are fulfilled.

Conclusion

Thai business partnerships provide a versatile and practical framework for establishing and managing businesses. Whether opting for an ordinary or limited partnership, understanding the legal, financial, and operational implications is vital. By adhering to local regulations and establishing clear agreements, entrepreneurs can leverage partnerships to achieve sustainable growth and success in the Thai market.

US-Thai Treaty of Amity

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The US – Thailand Treaty of Amity allows American citizens and businesses incorporated in the US or majority-owned by Americans to enjoy privileges when doing business in Thailand. Some of these include being exempt from import duties and remitting profits, dividends and royalties without restrictions.

However, it’s important to understand the limitations of the US-Thai Treaty of Amity. GPS Legal has extensive experience helping clients obtain certification under this treaty.

Benefits

The US-Thai Treaty of Amity provides distinct registration advantages to American companies operating in Thailand. The benefits include:

National Treatment: American businesses incorporated under the treaty are treated as Thai entities, providing a competitive advantage and greater flexibility for business operations. The treaty also protects investments and intellectual property rights.

Streamlined Process: Applying for the treaty is a quick and simple process that can be completed in 90 days or less from submission of your application to approval. This is a significant advantage over the Foreign Business License (FBL) process, which typically takes up to six months.

Exemptions and Incentives: The treaty allows US citizens to establish sole proprietorships, partnerships, representative offices or branch offices in Thailand without having to comply with the Foreign Business Act (FBA). The treaty also exempts companies registered under it from the requirement of having a Thai partner to sponsor Non B visas or work permits for foreign employees.

Limitations: A company registering under the treaty must have at least 51% of its shares owned by Americans. Additionally, a company cannot directly buy land in Thailand unless it has a Thai subsidiary that owns the land. This can be circumvented by establishing a leasehold arrangement with the landowner, however this has legal and tax implications that should be discussed in detail with your advisors.

Requirements

While companies registered under the Amity Treaty do have a lot of advantages, it does come with some requirements that should be considered carefully. First and foremost, the majority of shares and decision-making power must be held by US citizens. This is not a requirement for most businesses, but it may be required for certain investment promotion programs. Additionally, the company cannot directly own land in Thailand, which can be a drawback for some sectors like agriculture or inland transportation. Fortunately, there are alternatives like leasehold arrangements and setting up a Thai subsidiary to purchase land.

To qualify for the Amity Treaty, a company must be an American sole proprietorship, partnership, representative office, branch office, joint venture or Thai limited company. A minimum of 50% of the shareholders must be American citizens, and the majority of directors must also be Americans. The company must submit a variety of documents, including corporate bylaws, lists of shareholders with their nationalities and articles of incorporation. The company must also submit notarized copies of the shareholders’ and directors’ passports.

In addition, an Amity Treaty company must hire four Thai workers to one foreign worker and comply with work permit rules. This can be a challenge for some companies, but it is a necessary requirement for those looking to maximize the benefits of the Amity Treaty. The registration process contains many legal complexities and it is best to consult with Emerhub’s advisors to ensure your business is compliant.

Procedures

The US-Thai Treaty of Amity allows American companies to maintain a majority shareholding in or wholly own a business in Thailand and engage in the same business activities as Thai companies with few restrictions. It also grants them national treatment, removing the need to obtain an alien business license (FBA).

To be eligible for the benefits of the US-Thai Treaty of Amity, a company must have American shareholders with over 50% ownership. In addition, the company must have authorized American directors. It must also be incorporated in the United States and registered with the Department of Business Development, Ministry of Commerce. The application process requires a number of documents, including the company’s articles of incorporation, lists of shareholders with their passport numbers, and notarized copies of all shareholder and director passports.

In addition to the US-Thai Treaty of amity, the US and Thailand have bilateral trade and investment framework agreements called Trade and Investment Framework Agreements (TIFA) and a Generalized System of Preferences program that provides duty-free entry for certain products. Despite these advantages, it is important to note that Amity treaty companies are still subject to the same foreign investment laws as non-Amity treaty companies. They are also not allowed to own land and must comply with work permit rules. These requirements can add time and cost to the registration process.

Limitations

The US-Thai Treaty of Amity has facilitated billions in trade and investment between the two nations, establishing strong economic collaboration. While the treaty offers American companies substantial privileges, it also restricts their activities in certain sectors. Understanding these limitations and staying updated on Thai legal changes is key to ensuring compliance.

The treaty allows Americans and American companies to maintain majority ownership of their businesses in Thailand and receive national treatment, exempting them from restrictions set out by the Foreign Business Act. In order to qualify, a company must present evidence that it is registered in the United States and that the majority of shareholders are American citizens.

Additionally, the company must have a minimum of 51 percent of ordinary shares to be considered as a treaty-protected entity in Thailand. A minimum of 51 percent of voting rights must also be held by the company’s American shareholders. If the company has directors of a third nation, they must co-sign documents with their American counterparts.

Companies that are protected under the US-Thai treaty can still face restrictions in other sectors, such as land ownership and taxation. In these cases, alternative solutions like leasehold arrangements or a Thai subsidiary can be used to gain the advantages of a fully owned treaty-protected company in Thailand without the restrictions. This option can be complicated, and professional guidance is recommended.

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