Whatever reasons you may have to close your company in Thailand, you need to ensure that it is done in good faith. This article will help you as a step-by-step guide for Thai Company Liquidation and Dissolution in a legit way.
However, if your company has a Board of Investment promotion, then the process may be somewhat different. Click the link to check the process of a BOI Company Dissolution in Thailand.
Step 1: Informing the Shareholders
All shareholders of the company must receive a formal invitation to attend a meeting. This meeting is to decide upon the process of dissolution and liquidation. The letter of invitation must be published in the local newspaper two weeks before the meeting. Additionally, it is mandatory to assign a liquidator to look after the process. Generally, a Director of the company acts as a liquidator. But many times, companies also employ third parties.
Step 2: Registering Company’s Dissolution
The liquidator must register the company’s dissolution with the Department of Business Development. It is mandatory to do so within 2 weeks of the shareholders’ meeting. Henceforth, the DBD issues a certificate, stating the company’s closing date. After getting the certificate, the director/liquidator must blueprint the balance sheet indicating the current accounts. This balance sheet must have attestation and certification from a Thai auditor. Later, the liquidator will announce a meeting where the shareholders will be asked to vet the balance sheet as well as authorize liquidation.
Step 3: Settle the Company’s Debt
The liquidator can now take to selling the assets and try to settle the company’s debts. As a part of the liquidation process, the liquidator must notify the creditors of the dissolution of the company by noticing them in a newspaper and sending registered mail. Cash that results from liquidation is used for the repayment of creditors. Further, the balance is distributed to the shareholders.
During this period, the company must submit a report of liquidation to the DBD every three months. The report must include an updated accounting of the process and must be available for inspection by the creditors and shareholders. As soon as the assets have been liquidated, the director or the liquidator prepares a final report.
However, before finalization of the procedure, the company must return its Tax I.D. card to the Revenue Department. With all the assets liquidated and confirming that the company owes no taxes, the director or the liquidator can then register the completion of the liquidation.
Nonetheless, by now, you must have understood that the entire process of a Thai Company Dissolution and Liquidation is not possible without legal help. Just similar to company registration in Thailand, you must hire a corporate law firm in Thailand with expertise in accounting and taxation. This will make your process easy and perfect. Email us at [email protected] for the best support in this regard.
