Foreign investors seeking to establish a business in Thailand commonly consider two key legal and investment frameworks: the US–Thailand Amity Treaty and the Thailand Board of Investment (BOI) promotion scheme. While both structures allow foreign participation in Thai businesses, they differ significantly in terms of eligibility, procedures, benefits, and strategic purpose. This article, prepared by our legal experts in Thai Investment Law at our law firm in Bangkok Herrera and Partners H&P, provides a comparative overview to help corporate investors determine which route best aligns with their business objectives.
1- Overview of Each Framework
US–Thailand Amity Treaty
The US–Thailand Amity Treaty is a bilateral agreement that grants special privileges to US nationals and US majority-owned companies. It allows American investors to own up to 100% of a Thai company in most business sectors, which would otherwise be restricted under Thailand’s Foreign Business Act.
However, certain business activities remain excluded, such as natural resource exploitation, domestic transportation, and activities related to national security.
BOI (Board of Investment)
The BOI is a Thai government agency responsible for promoting foreign and domestic investment in targeted industries. It provides both tax and non-tax incentives to qualifying projects, particularly in sectors such as technology, digital services, advanced manufacturing, and green energy.
Unlike the Amity Treaty, BOI is not nationality-restricted and is available to investors from all countries.
2-Application Process
US–Thailand Amity Treaty
The process generally includes:
- Incorporation of a Thai company
- Obtaining a US Nationality Certificate
- Applying for a Foreign Business Certificate (FBC) with the Department of Business Development (DBD)
- Review of shareholder structure and supporting documentation
Estimated timeframe: approximately 2–3 months, depending on document readiness.
BOI
The BOI process typically includes:
- Preparation of a detailed business plan and investment structure
- Submission of an application to the BOI
- Presentation and clarification meeting with BOI officers
- Approval and issuance of BOI promotion certificate
- Company incorporation and licensing procedures
Estimated timeframe: approximately 3–6 months, depending on project complexity.
3-Key Benefits
US–Thailand Amity Treaty
- Up to 100% foreign ownership (for US nationals only)
- No requirement for Thai shareholders in most business activities
- Full operational control of the company
Limitations:
- Restricted to US investors only
- No tax incentives
- Still subject to general Thai corporate and regulatory laws
BOI
- 100% foreign ownership available (no nationality restriction)
- Exemption from Foreign Business Act restrictions for promoted activities
- Corporate income tax (CIT) exemptions for a defined period
- Import duty exemptions on machinery and raw materials
- Facilitation of work permits and visas for foreign experts
- Strong government support for long-term investment
Limitations:
- Restricted to BOI-approved business activities
- Must comply with investment, employment, and operational conditions
4-Strategic Comparison
| Aspect | US–Thailand Amity Treaty | BOI |
| Ownership eligibility | US nationals only | All nationalities |
| 100% foreign ownership | Yes (with sector limits) | Yes (for approved projects) |
| Tax incentives | None | Significant (CIT exemption, duty relief, etc.) |
| Business flexibility | Moderate | High, but sector-restricted |
| Processing time | 2–3 months | 3–6 months |
| Best suited for | General commercial businesses | Technology, manufacturing, and long-term strategic investments |
5- Strategic Considerations
- For US investors seeking a straightforward corporate structure, the Amity Treaty may be the most efficient option.
- For investors seeking tax incentives, government support, and long-term expansion in Thailand, BOI is typically the more advantageous route.
- For technology companies, startups, and innovation-driven businesses, BOI is often the preferred framework due to its incentives and flexibility.
Conclusion
Both the US–Thailand Amity Treaty and BOI promotion scheme are powerful tools for foreign investors entering the Thai market. However, they serve different strategic purposes. Investors should consider not only ownership structure but also tax benefits, long-term business strategy, and industry eligibility when selecting the most suitable framework for their operations in Thailand.
If you need assistance with an US Amity Treaty or wish to explore alternatives such as BOI promotion, please feel free to contact our corporate team at Herrera and Partners in Thailand at info@herrera-partners.com
