March 3, 2015
Bangkok, Thailand
Those who have traveled will understand me when I say that you can instantly feel what local people’s attitudes towards you are just from the way they look at you.
It’s hard to describe specifically what the differences are… you just feel it.
As a traveler this can have a huge impact on how you feel about a place, while as an expat it can make all the difference. It’s hard to ever feel at home in a place where people watch you when you walk by as if you’re some bizarre alien.
That’s not to say that you want to avoid anywhere you might stand out, because while in some places those glances can mean hostility or wariness, in others they can mean curiosity and adoration instead. And it’s always great to be where it’s the latter.
In fact, I’ve found that in some places, the fact that I look foreign actually gets me better treatment.
This is exactly how I feel whenever I arrive here in the Land of Smiles, where I’m quickly reminded of how the country got that nickname.
From the moment I step off the plane I’m met all around with deep bows and pleasant greetings.
Famed for their warmth, the Thais heartily welcome foreigners into the country to enjoy their beautiful beaches, vibrant culture, and incredible food.
But as friendly and accepting as the Thais are, a barrier always remains between them and everyone else.
This distinction is particularly apparent when it comes to business—which is quite evident in how policymakers didn’t mince words at all in coming up with the Alien Business Law.
This law, which dictates foreign business operations in the country, sets strict limits on what industries a non-Thai company can engage in and limits ownership stakes in Thai businesses by foreigners to 49%.
Thus the best option available for most foreigners is to find a local Thai partner who holds a majority stake of the company.
It works, but it’s a complicated process that requires a great deal of trust in a local partner.
However, if you happen to be a citizen of the US, Australia, or Japan, there’s a big, giant loophole.
Each of these countries has signed special agreements with Thailand that changes all of that.
US citizens, for example, can take advantage of the 1966 Treaty of Amity, which enables US companies to receive national treatment in Thailand.
This means that a US citizen can do business in Thailand through a US company that s/he 100% owns, instead of using a convoluted and expensive structure to own a minority stake of a Thai company. US companies are also allowed to wholly own their Thai subsidiaries or branches.
There are still some sectors that remain off-limits, like banking and real estate. But it’s an easy way for US (and Japanese, Australians) to do business in Southeast Asia’s largest economy.
The application process is fairly straightforward.
Applying requires little more than filling out an application, providing some identification and company statements, and waiting a month or so for approval.
Though Thailand has recently undergone a number of political changes, this treaty has a long history and seems to face no challenges.
Now, I’m not suggesting you drop everything and go start a business in Thailand, although it’s definitely a very interesting place, with lots of opportunities. Especially to cater to the huge expat population here, or the growing middle class with money to spend—Thais are big consumers themselves.
Rather, I want to open your mind to the fact that as countries, especially in the bankrupt West, are putting up more and more restrictions and limitations on what we as sovereign human beings can do, there are always solutions and ways to overcome every obstacle.
Sometimes they come in the form of government loopholes themselves, such as the Thai-US Amity Treaty or international tax agreements between countries that you can use to your advantage to keep more of what you earn.
Other times they come in the form of the rapidly advancing technology and innovation that’s rendering the old social, political, and financial order obsolete.
And sometimes they are the age-old tactics of not putting all your eggs in one basket and betting your whole life on the fortunes of one single political entity.
All you have to do is open your eyes to alternatives and be curious and bold enough to pursue them.
