Can't Close My Company... What Do I Do?

[divedivedive]

Hello,

I've been lurking here for years, but it's not until I want to leave Thailand that I actually need to post!

I have a company in Phuket with two work permits, one for me and the other unused. I am leaving Thailand in two weeks to take a job back in "the real world." I have no plans to work in Thailand ever again. I spoke with my accountant, and he wants 20,000k Baht to close my company, and I just don't have that kind of money laying around, especially after this last year of no tourists and very little work. I have tried to sell the company, but due to the short notice and the few incoming tourists, I seriously doubt I'll be able to.

What do I do?

If I just walk away, will I be prevented from re-entering Thailand for holidays in the future?

[Lite Beer]

Moved to business forum.

[stevehaigh]

you should be happy he's only asking 20,000. i think i paid more to close mine. its quite a lot of paperwork and filing fees your accountant has to do.

i would find the money and do it right if i was you. if you came back to Thailand a few years later they could ask you to pay up back taxes for several years.

steve

[laosuwan]

You cannot close the company without a final audit (usually about 10,000 baht for the accountant) and payment of outstanding VAT, income taxes and personal income tax on forced disbursment of retained earnings, if any. Of course, if you just leave and never return there is nothing they can do. However, if you return and your name has been put on the Immigration watch due to Revenue Department requesting a hold on you, you will probably miss your return flight. Your best bet, if you want to return someday, is to find a cheaper accountant and get a Thai advisor with connections at Revenue Department to go in and negotiate a settlement paid in installments. If you have no money and are leaving wihtout doing this, then I would not come back with the same name or passport number as you will be at risk of arrest. By the way, if you leave without the final audit you will certainly contribute to sentiment by the officials that will make life more difficult for the rest of us. Please think about that.

Hello,

I've been lurking here for years, but it's not until I want to leave Thailand that I actually need to post!

I have a company in Phuket with two work permits, one for me and the other unused. I am leaving Thailand in two weeks to take a job back in "the real world." I have no plans to work in Thailand ever again. I spoke with my accountant, and he wants 20,000k Baht to close my company, and I just don't have that kind of money laying around, especially after this last year of no tourists and very little work. I have tried to sell the company, but due to the short notice and the few incoming tourists, I seriously doubt I'll be able to.

What do I do?

If I just walk away, will I be prevented from re-entering Thailand for holidays in the future?

[massein]

you should be happy he's only asking 20,000. i think i paid more to close mine. its quite a lot of paperwork and filing fees your accountant has to do.

i would find the money and do it right if i was you. if you came back to Thailand a few years later they could ask you to pay up back taxes for several years.

steve

I had the same experience, with the exception I did not have a work permit nor did the company ever do anything except buy a vehicle. I was force to pay 20,000.as well and i even had to do all the leg work my self. maybe you can negouate the 20,000, but it is a typical scam a few of us farang fall for. the way to make small fortune in Thailand remains the same , Bring over a large fortune. Good luck. Bye the way been here 10 years have a wonderful wife,who owns a nice house . two trucks ,and 2 motorcycles and about 80 rai of good farm land,. I own nothing and if worse come to worsed , I would shed a few tears but start over once again. been their done that.

[beechguy]

I agree that it would be better if you complete this in a legal manner. But, I don't think it has to be completed before you leave. I have had my accountant send documents for my signature (Annual Audits, etc) to me outside of the country. Is there any reason the OP has to be there in person, if he has a dependable accountant to complete the filings for him?

[12DrinkMore]

I had the same experience, with the exception I did not have a work permit nor did the company ever do anything except buy a vehicle. I was force to pay 20,000.as well and i even had to do all the leg work my self. maybe you can negouate the 20,000, but it is a typical scam a few of us farang fall for.

20,000 is about the price to close a company.

I don't regard it as a scam at this price, as there is quite a lot of paperwork involved in closing the company. The scam starts when the accountant asks for 40,000 or 60,000, well out of proportion to the work involved.

I am also in the same boat, or rather, I have a company that does nothing. Every year another 10,000 for the accounts. Note to self: close the dam_n company.

Selling a company is difficult, as there is always the risk to the purchaser that contracts have been signed in the name of the company which are not evident at the time of sale. And especially if the owner is trying to sell in a couple of weeks before leaving the country.

I would advise closing the company properly to avoid any problem in the future.

[laosuwan]

by the way, every clever person who has bought land by forming a company will have to deal with this issue one day, if they are not first forced to divest by the authorities, before they may want to sell.

You cannot close the company without a final audit (usually about 10,000 baht for the accountant) and payment of outstanding VAT, income taxes and personal income tax on forced disbursment of retained earnings, if any. Of course, if you just leave and never return there is nothing they can do. However, if you return and your name has been put on the Immigration watch due to Revenue Department requesting a hold on you, you will probably miss your return flight. Your best bet, if you want to return someday, is to find a cheaper accountant and get a Thai advisor with connections at Revenue Department to go in and negotiate a settlement paid in installments. If you have no money and are leaving wihtout doing this, then I would not come back with the same name or passport number as you will be at risk of arrest. By the way, if you leave without the final audit you will certainly contribute to sentiment by the officials that will make life more difficult for the rest of us. Please think about that.

Hello,

I've been lurking here for years, but it's not until I want to leave Thailand that I actually need to post!

I have a company in Phuket with two work permits, one for me and the other unused. I am leaving Thailand in two weeks to take a job back in "the real world." I have no plans to work in Thailand ever again. I spoke with my accountant, and he wants 20,000k Baht to close my company, and I just don't have that kind of money laying around, especially after this last year of no tourists and very little work. I have tried to sell the company, but due to the short notice and the few incoming tourists, I seriously doubt I'll be able to.

What do I do?

If I just walk away, will I be prevented from re-entering Thailand for holidays in the future?

[Naam]

by the way, every clever person who has bought land by forming a company will have to deal with this issue one day, if they are not first forced to divest by the authorities, before they may want to sell.

an "un"clever assumption based on lack of background knowledge as property held by a company is in nearly all cases disposed off by selling the company with the property. there's nothing to divest except any capital gains which will be taxed

[mommysboy]

I had the same experience, with the exception I did not have a work permit nor did the company ever do anything except buy a vehicle. I was force to pay 20,000.as well and i even had to do all the leg work my self. maybe you can negouate the 20,000, but it is a typical scam a few of us farang fall for.

20,000 is about the price to close a company.

I don't regard it as a scam at this price, as there is quite a lot of paperwork involved in closing the company. The scam starts when the accountant asks for 40,000 or 60,000, well out of proportion to the work involved.

I am also in the same boat, or rather, I have a company that does nothing. Every year another 10,000 for the accounts. Note to self: close the dam_n company.

Selling a company is difficult, as there is always the risk to the purchaser that contracts have been signed in the name of the company which are not evident at the time of sale. And especially if the owner is trying to sell in a couple of weeks before leaving the country.

I would advise closing the company properly to avoid any problem in the future.

30,000 is a standard rate among reputable companies.

[shadiadi]

I have opened and closed about 4 companies here so far over the years 20,000 - 30,000 is the going rate severence pay for your staff can be a bigger expense too. Also paying tax on everything you give away or cant sell sucks too

[Riley'sLife]

by the way, every clever person who has bought land by forming a company will have to deal with this issue one day, if they are not first forced to divest by the authorities, before they may want to sell.

an "un"clever assumption based on lack of background knowledge as property held by a company is in nearly all cases disposed off by selling the company with the property. there's nothing to divest except any capital gains which will be taxed

I would suggest that buying an existing Company (which could have undisclosed/unseen liabilities) in order to acquire real estate would be imprudent in a civilised and legally structured country. - in Thailand it would be reckless. Far better to acquire the vendor Company's assets in a newly formed Comany's name, leaving the original vendor Company for the owners to dispose of.

All this is assuming one is willing to be clearly acting against at least the "spirit" of Thai Law which comprehensively prohibits the acquisition of landed real estate by foreigners. "Exit strategy" is vastly more relevant in any endeavour in Thailand before simply deciding to jump in feet first, as many people discover after the event. But, each to their own!!