Closing a company in Thailand involves several steps. For whatever reasons you are winding up your business, you’ve to ensure that the legal, auditing, and accounting issues are settled and your assets are properly distributed.
Here are a few steps to consider before closing a company in Thailand:
1. As per Thai law, you’ve to hold a meeting with the shareholders. This is to discuss the reason behind the dissolution of your company. Send the invitation to your shareholders. Also, publish the letter in a local newspaper. You’ve to publish the letter 14 days prior to the meeting.
2. Submit the application for company dissolution at the Department of Business Development (DBD) under the Ministry of Commerce. The officer at the DBD will, thereafter, issue a certificate of dissolution mentioning the closing date of the company.
3. Within 14 days from the date of dissolution, publish the certificate in the local newspaper. Send emails to the creditors of the company announcing its dissolution.
4. If your company is registered in the VAT system, in that case, you have to return the VAT registration certificate. Within 15 days from the date of closing, file Form Por Por 09. If you fail to do so, you have to pay a fine of 2,000 Baht.
Next are the steps that need the involvement of competent Thai Accounting & Audit Professionals!
5. Prepare and complete the accounts and financial statements of your company till the date of closing. A Thai auditor must audit your files. Submit these statements within 150 days to the Thai Revenue Department.
6. Return the Tax ID card of your company to the Revenue Department.
7. Liquidate the assets of your company. Clear any existing debts that your company has. Afterward, return the remaining cash to the shareholders according to the ratio of shareholding.
8. File liquidation reports to the DBD. This is to be done every three months until the completion of the process of liquidation. After this, the Revenue Department will issue a letter to the DBD certifying that your company doesn’t owe any taxes. After this, ask the liquidator to register the completion of the process with the DBD.
These points will help you to understand the process of winding up a company in Thailand. Are you interested in company formation in Thailand? If yes, then get in touch with us. We will help you with Thailand company formation, in full compliance with the legal processes. Call us today at +66 26260277.
