Is it difficult to close a company that is already registered in Thailand? What are the procedures for it?

You are currently viewing Is it difficult to close a company that is already registered in Thailand? What are the procedures for it?

Closing a company in Thailand involves a series of procedures and requirements. While the process can be somewhat complex, it is manageable if the necessary steps are followed. Here is an overview of the procedures involved in closing a company in Thailand:

  1. Board Resolution: The company’s board of directors must pass a resolution to initiate the company’s dissolution and appoint a liquidator. The liquidator can be a director, shareholder, or an external person.
  1. Inform Relevant Authorities: Notify the relevant government authorities, including the Department of Business Development (DBD), the Revenue Department, the Social Security Office, and any other relevant regulatory bodies, about the company’s intent to dissolve. This can be done by submitting the necessary forms and documents to each authority.
  1. Liquidation Process: The liquidator is responsible for winding up the company’s affairs, including settling any outstanding debts, liquidating assets, and distributing remaining assets to shareholders. The liquidation process typically involves the following steps:
    • Asset Assessment: The liquidator evaluates and assesses the company’s assets and liabilities, prepares a balance sheet, and determines the value of the company’s assets.
    • Debt Settlement: The company’s outstanding debts, including taxes, must be settled. The liquidator may negotiate with creditors and make arrangements for debt payment.
    • Asset Distribution: After settling debts, the remaining assets are distributed to shareholders in proportion to their shareholding.
    • Final Tax Clearance: Obtain a final tax clearance certificate from the Revenue Department to confirm that all tax obligations have been fulfilled.
  1. Company Reregistration: Once the liquidation process is complete, the company can proceed with reregistration. The following steps are typically involved:
    • Final Financial Statements: Prepare and submit the final financial statements to the DBD.
    • Shareholder Meeting: Hold a final shareholder meeting to approve the liquidator’s report, the final financial statements, and the company’s dissolution.
    • Application for Dissolution: Submit an application for company dissolution to the DBD, along with the required documents, such as the liquidator’s report, financial statements, and minutes of the shareholder meeting.
    • Public Announcement: Publish a public announcement of the company’s dissolution in a local newspaper for at least three consecutive days.
    • Reregistration: Once the DBD verifies and approves the dissolution application, the company will be officially deregistered

It is important to note that the process and requirements for company dissolution in Thailand may vary depending on the specific circumstances and the type of company. Seeking guidance from a qualified Thai lawyer, accounting firm, or business consultant is advisable to ensure compliance with all legal requirements and to navigate the dissolution process smoothly.

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