When to close a business in Thailand?

Updated on Thursday 02nd November 2017

When to close a business in Thailand? Image Sometimes a business in Thailand can cross a difficult time. Not every entrepreneur can determine by himself/herself whether the company might recover from a crisis or not. There are, however, certain principles which may help you decide what to do with a company which is no longer bringing profit to you and needs to be dissolved. One of our consultants in company formation in Thailand can discuss with investors and explain what is implied by a company liquidation procedure.

Situations in which to consider closure 

In the following, our specialists in company registration in Thailand have summarized some of the most frequent situations when an investor should take into consideration the closing down of a firm.

When your company in Thailand brings you very low profits, it might be a sign that the business strategy employed fails to keep in balance the expenses and the costs. It is also possible that the employees that you have hired cannot cover the most stringent needs of the business. If your situation cannot be bettered, it is maybe time to consider closing down the firm.  

A change in the market conditions can also be a cause for business fall. If you provide products which no longer attract customers you may consider orienting yourself to a different business area in Thailand, unless you can adapt to the new needs and trends of the local market. 

One of our specialists in company registration in Thailand may help you with the procedure of deregistration and with the legal aspects connected to a closing an enterprise.
 

Steps for closing a Thai company

In order to anticipate and prevent bankruptcy, an entrepreneur needs to watch closely the financial balance of the company and be able to determine what the digits say about the situation of the enterprise. The decision to liquidate a company in Thailand must be taken in a board meeting, and certified by an official document. 
 
The next step is to address the D.B.D. (Department of Business Development) and to start a deregistration procedure. The liquidators must be allowed to elaborate a balance sheet based on the records provided by your company.

Feel free to contact one of our specialists in company formation in Thailand in order to help you apply the provisions of the Thai Civil and Commercial Code in issues related to company liquidation

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