When a company needs to be shut down because of various reasons, like poor profitability, inability to effectuate business operations or economic conditions, the company liquidation procedure in Thailand has to be undertaken under certain rules and regulations according to the Civil and Commercial Code. Individuals who wish or have to liquidate a company in Thailand can be assisted by our Thaicompany formation experts in order to effectuate the dissolution procedure.
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Dissolution of a limited company in Thailand
If the business which is about to be closed down is a Thai limited company, the first step that needs to be taken is to audit the accounts of the company. This will offer a summation of all liabilities and assets of the business. In case there are any legal proceedings or ongoing tax issues, they need to be sorted out.
In order to begin the companyliquidation process in Thailand, the shareholders must hold a meeting to vote the resolution for dissolving the business. This resolution has to be voted by minimum 75% of the shareholders. After the resolution has been voted, the shareholders choose one or several liquidators with no liability for representing the shareholders. When the dissolution decision is being made, an application of closure has to be filed with the Business Development Department (BDD) from within the Ministry of Commerce. All the company creditors have to be notified and a final audit has to be forwarded to the BDD.
The liquidator must apply for a VAT dissolution, at which point the VAT filing forms for the previous couple of years must be submitted to the revenue department in Thailand. The VAT registration certificate has to be reverted by Thai company formation professionals.
General information about the company liquidation procedure presented by our experts in company registration in Thailand
To liquidate a company in Thailand, the managers have to publish in a newspaper the fact that the company shareholders will gather to set out the conditions under which the business will be closed. The announcement in the newspaper targets the creditors of the company, who will also be notified on the status of the company by mail.
The company liquidation procedure in Thailand takes place in two stages:
1. The first stage is represented by the dissolution of the company: this is a procedure through which the company is legally ended;
2. The second stage is the company liquidation itself: during this process, all the debts must be paid and the assets – distributed.
Enlisting the assistance and the services offered by a local team of accountants in Thailand, such as our own, is also useful during the company’s liquidation. A specialist will be able to provide guidance, review the financial situation of the company, prepare reports and statements as needed, and oversee the distribution of assets to creditors. Reach out to us if you are in need of these services.
If you need further advice on how to close a Thai company, we invite you to get in touch with our experts in company registrationin Thailand for guidance.