Dormant Company / "zero Accounting"

[thaitanic]

What are the bare minimum requirements to keep a Thai Limited company going while we're not doing any business? So we have the option of starting up again and applying for work permits etc. in the future.

- Presumably we still need to do annual accounts and audit (annual report) at the start of each year (this normally costs us 15,000 baht)?

- Is the 6-monthly report still needed (after the end of July)?

- Does the company need any employees? Is there a minimum salary?

- Are we required to continue to withhold rental tax on an office, even if we aren't doing business?

- Any other requirements?

Thanks!

[Irene]

My comments are in bold type:

What are the bare minimum requirements to keep a Thai Limited company going while we're not doing any business? Having the accounts updated to each year end date and having a set of audited finacial statements filed with the ministry of commerce. This could be arranged by your accountant or your accounting service company. The service company should be able to provide the inclusive services. Fees of 15,000 baht should be reasonable. But you can get it cheaper, if you can scout around. But it is better to get the one with capability and responsibility in filing. As to taxation, if you have registered VAT, a zero return has to be filed monthly unless you revoke the registration. This again can be inclusive with that 15,000 baht. So we have the option of starting up again and applying for work permits etc. in the future.

- Presumably we still need to do annual accounts and audit (annual report) at the start of each year (this normally costs us 15,000 baht)?Yes.

- Is the 6-monthly report still needed (after the end of July)? No, if there is no operation, six-monthly or half-year tax report is not necessary. But tactically, it is better to file with zero return. It is only on one sheet of paper, filling with nil. It should not take more than 5-minute to fill in and half an hour travelling to the district office. It is best to do that to avoid of having to receive an enquiring letter to the company on the missing half-year tax return.

- Does the company need any employees? Is there a minimum salary? No, not under corporate law or tax law. But if the company is used for asking work permit, then I don't know exactly the requirements.

- Are we required to continue to withhold rental tax on an office, even if we aren't doing business? Yes, whenever there is a payment and file with the revenue 7 days after the end month.

- Any other requirements? Based on your limited information, I cannot think of any.

Thanks!

[keestha]

Many pensioners established companies just to be able to buy land, and obviously these companies have been dormant since they were established. But possibly the rules could be different or be applied in a different way for companies that have been established more recently. I would like to hear from somebody who knows more about this.

Edited February 29, 2008 by keestha

[taxin]

My comments are in bold type:

As to taxation, if you have registered VAT, a zero return has to be filed monthly unless you revoke the registration. This again can be inclusive with that 15,000 baht.[/b] So we have the option of starting up again and applying for work permits etc. in the future.

Thanks!

Can you revoke or de-register a Thai company for VAT later down the line ? I was told this was not possible to do ?.....

[niggle]

Even if dormant the company still has to present annual accounts at the right time (late filing can result in hefty fine).

15000 seems the average price for a competent accountancy service

[thaitanic]

Thanks very much for the replies.

If I cancel my work permit, which I have to do anyway because I will be away for six months, who is authorised to sign monthly tax forms such as property tax form 3? And who would be able to sign the annual report? Presumably I would no longer be able to do this without a work permit, right? Do I need to appoint someone to do it for me? What are the requirements for that person and is there some paperwork required for changing the person who signs?

And how about our company bank account, which also has only me as the authorised signatory?

[thaitanic]

Apologies for the bump.

Anyone have some knowledge about the issue of who can sign company documents after my work permit stops?

Thanks