7 steps for closing limited company in thailand

7 Steps for Closing Limited Company in Thailand

Introduction to Closing Limited Company in Thailand

• Growth in economic stability, profitability and trend of competition, some business owners choose to closing operation of registered company in Thailand.• There may be multiple reasons for closing your company in Thailand. Business

must need a legal, auditing assistance and accounting service to ensure that the company will be closed in good faith• While closing down a limited company in Thailand, you must consider the

following procedures:

According to the Thai law, the company must hold a stakeholder's meeting to discuss the agenda of closing limited company. For this, invitation letter for the meeting should be sent to all company stakeholders.

Steps for Permanent Closure of a Thai Limited Company

1. Sending invitation letters to all stakeholders for an extra-ordinary Shareholder's Meeting.

2. Publising the Letter in the Local Newspaper

Advice of Delivery Service must be ensured so that the stakeholders' will acknowledge the receipt of the letter. The same letter should be published in a local newspaper too. This step must be done at least 14 days before the date of the stakeholder's meeting.

3. Register the company Closure at the Department of Business Development

Within 14 days from the closing date of the Stakeholders’ meeting has approved, the application form along with any required documents should be submitted to Department of Business Development, Ministry of Commerce (DBD) to register for company Closure in Thailand.

4. Publish Company Closure Report & Send Letters to Inform Creditors

• Within 14 days from the date of closing of the business, you must publish in a local newspaper about the company dissolution at least once.

• After this send letters by registered e-mail to the company’s creditors and inform them about the company closure.

5. Complete Auditing of Accounts/Financial Statements till closing date

• The company must prepare & complete its accounts/financial statements of the current accounting period until the date of closure of the business and it must be audited by a Thai auditor. • If the company is registered with VAT system,

returning the VAT Registration Certificate (Por Por 20) to the Revenue Department (RD) is necessary.• company’s Tax I.D. card must be returned to the

Revenue Department

6. Clear Company’s Debts & Returning Remaining Cash to the Stakeholders

• As a liquidator of the company, you must liquidate all assets of the company (converting them to cash) and pay off the companies’ creditors• Divide the remaining cash and return

it to the company’s stakeholders according to the holding ratio.

7. Regsiter With The Department of Business Development

Once the liquidation is done based on the stakeholder's ratio, you must file liquidation reports and then register with the completion of liquidation process with the Department of Business Development, Thailand

Note: As a business owner, these tasks are often tedious for you. So it iis recommended to consult a legal firm that will take care of all the legal procedures for closing a limited company in Thailand.

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