Closing a Thai Company
Do you want to dissolve your company? Are you looking for dissolution services in Thailand? Look no further we are here to help you. We offer cost-effective and efficient dissolution services in Thailand. There are many reasons for a company to dissolve. These might include:
Unable to bear business operations
Shareholders might not want to do business in Thailand.
Whatever the reason may be, the dissolution of the company must be done legally and efficiently. The process of closing a company requires the services of lawyers and an accountant. We can help you in the dissolution of your company. We have experienced and qualified accountants as well as lawyers.
There are 2 steps to dissolve a Thai company, liquidation, and dissolution. The dissolution of the firm states the formal termination of the firm’s legal presence. While liquidation of the firm means the distribution of the assets and payment of debts.
Here is the process of dissolution of a firm.
Dissolution of a Company Procedure
For a company to close down in Thailand requires contacting 2 government departments. These departments are the Revenue Department and Ministry of Commerce. The process of closing down a company in Thailand:
The Department of Revenue
In case you have registered for VAT, you must apply for deregistration of the VAT. This must be done within 1-2 months of the termination date. Along with this, you must give back your Tax ID and VAT certificate.
If there is any inventory or assets shown in the balance sheet till the closing date. You will have to pay VAT of 7%. In order to get VAT tax return, you have to apply a blank form till you get an official letter. The letter will be related to the approval of deregistration of VAT payment.
The Commerce Ministry
The first in the dissolution of the company is hold a shareholder’s meeting. In this meeting, the closing of the company is approved and they are notified by mail as well. Afterward, an auditor and liquidator are appointed. The advertisement is also placed in the newspaper about the closure of the firm. This is advertisement is to notify the public and creditors.
Moreover, the creditors are informed about the closure through registered mail as well. The creditors then can register for a claim for outstanding debts by the firm. Later all the forms are prepared that are required to register with Ministry of Commerce. It must be done within 14 days from the shareholder’s meeting. The company will get a certificate that will show the closing date of the company and name of the liquidator.
The auditor should prepare the financial statements, these includes balance sheets and accounts. The financial statement must be made till the closing date. Then shareholders meeting must be held in order to approve the financial statement. After the approval, the statement is submitted to the Ministry of Commerce.
The liquidator’s report must be submitted to the Ministry of Commerce. After clearing the liabilities and assets, one last meeting of shareholders must be held. This meeting is held for the approval of the final liquidation of the business.
Moreover, the transcripts of the meeting must be given to the Ministry of Commerce in 14 days. As soon as the approval from Revenue Department is received. The liquidator must inform and submit a copy of the approval to the Ministry of Commerce. This is to get final approval from the Ministry of Commerce for the dissolution of the company.
However, the whole process can take up to 1 to 2 years. The process will take so long in case the books were not properly maintained or tax returns were not correctly filed.
Our legal and accounting professionals have worked in collaboration several times for dissolution of firms in Thailand. All of our experts are experienced and qualified enough to minimize the tax implications. Furthermore, they are able to complete the whole process in the shortest span of time. There is no better combination of experience and affordability than ours. You get the best dissolution services in all of Thailand.