Local or foreign entrepreneurs who have opened companies in Thailand and, due to various reasons, prefer or have to shut down the business, should comply with a specific process which will require the assistance of professionals, such as accountants and lawyers. The dissolution of a Thai company is performed in accordance with the rules and regulations imposed by the Civil and Commercial Code; persons who want to close a company in this country can receive assistance on this matter from our team of lawyers in Thailand, who can assist throughout the dissolution process.
General information on how to close a business in Thailand
In order to close a company, the managers are required to publish in a newspaper that the shareholders of the business will meet in order to establish the conditions under which the company will be shut down. The newspaper announcement will target the company’s creditors, who will also be informed on this situation by mail.
The closing down of a Thai company involves two main steps:
• dissolution – a process through which the legal existence of the business is terminated;
• liquidation – a process referring to the payment of the company’s debts and distribution of the assets.
The procedure is performed with the assistance of a liquidator, appointed by the Department of Business Development (DBD), working under the Ministry of Commerce; our team of lawyers in Thailand can provide details on the requirements of the DBD.
Our lawyers in Thailand can also help in immigration matters. Furthermore, if you as a foreigner are interested in acquiring a Thai residence permit, you are welcome to get in touch with our lawyers. Thailand is drawing more and more tourists and businesspeople, due to its rich culture, inexpensive yet very high standard of living, and favorable tax structure. So, if you are planning to become a resident here and enjoy these benefits, the services of our lawyers are at your disposal.
Compulsory steps when closing down a business in Thailand
When closing down a company, the representatives of the business have to comply with Value Added Tax (VAT) requirements, which stipulate that the business must file a tax invoice for the assets the company still owns; the applicable rate is established at 7%. If you need advice on VAT registration or on Thai immigration, please contact us.
Our team of lawyers can provide legal advice on the procedure related to the human resources; if the company is closing down, the employees will have to be fired, a step which has to be performed before the official closing date.
The company will have to deregister from local authorities and inform the Social Security office on the current situation of the business.
It is compulsory to deregister from the Revenue Department, which will approve the procedure if the company does not have any payable pending taxes; our lawyers in Thailand can offer more details on this procedure.
If you need further assistance on the procedure applicable in the case of company dissolution in Thailand, please contact our team of lawyers for legal advice.