For whatsoever reason, if you find that you decide to close the company that you started in Thailand, Umpire Legal can professionally assist you with the process of registering the liquidation and dissolution of the legal entity with the Thai Ministry of Commerce and other relevant government authorities.
The process of liquidating and dissolving your company in Thailand can take between 6 – 12 months depending on a few factors such as whether or not your company’s accounts for the previous year was audited, ensuring that there are no outstanding legal proceedings or tax issues to be settled, the company’s registered capital and assets, and so forth.
Company Dissolution Process
The first step in the liquidation and dissolution process to close a company in Thailand is the registration of dissolution with the Department of Business Development (DBD) before which the following must be carried out by the company:
- Hold a board meeting to approve of the dissolution
- Hold two general meetings of shareholders to approve of the dissolution, appoint a liquidator and an auditor, before which there must be announcements published in the local newspaper and letters sent to invite the shareholders to the meetings and inform creditors about the proposed liquidation
The next step for dissolving the company in Thailand after the liquidation has been registered is as follows:
- Have the balance sheets, accounts and financial statements of the closing company prepared by an accountant and certified by an auditor
- Ensure that the business affairs are settled and that all responsible government offices have been informed about the company closure, for example employees should be de-registered from the social security system, existing corporate bank accounts must be closed, visas and work permits cancelled (if any)
- Hold a general shareholders’ meeting to approve of the financial statements of the closing company, before which there must be an announcement published in the local newspaper and letters sent to invite the shareholders to the meeting
- Inform and request for approval from the Revenue department to liquidate and dissolve the company and return the company’s VAT certificate (if any)
- Hold a final shareholders meeting after which the dissolution of the company in Thailand can be registered with the DBD, where the company’s books, accounts, documents etc. must also be submitted to the DBD
Due to the involvement of many details and the complexity of the company closure process, it is advisable to find an efficient law firm such as Umpire Legal to guide you through the liquidation and dissolution of your company in Thailand until completion.