Advice Needed Business In Thailand

[TheJalapenoKid]

Hello,

Earlier this year i opened an internet shop. Unfortunately the shop has never quite taken off and i am looking to close.

My problem is that i opened up a Thai Ltd Company with my partner and my close friend (i just found out today i didnt really have to bother opening a company for an internet cafe but thats another story).

I am being told i will have to pay around 12,000 Baht for the accounts to be done (not even a year old) before the company can be closed. Thats quite a lot of Baht when i look at how much i have already been "drained".

So my question is this: If i decided not to close the company but instead just shut the doors and relocate my home, can i be traced? I know that they took my passport details but are all the computer systems linked in Thailand? My main worry is getting picked up at Immigration and facing the consequences.....

Can anyone throw any advice at me?

Thanks

TJK =)

Edited December 2, 2009 by TheJalapenoKid

[gotlost]

Pay the piper his dues and make sure you research better next time.

[MeMock]

Got Lost, that doesn't really help does it?

I cannot for the life of me understand why you would need to pay money to wind a company up?

I mean, given the statistics that show that almost 80% of new business close the door in the first two years then why would there be any kind of 'fee' to wind a company up?

Surely most companies would just shut the doors and be done with it.

[opalhort]

If you want to close a registered Co.,Ltd. you HAVE TO notify the Ministry of Commerce and the Revenue department!

This requires an accountant to close all accounts and file all the papers which also includes meeting reports of the board of directors and publication in certain business newaspapers.

12K is certainly not to much for that.

If you just run and not file the papers you will face fines in the future for not filing the annual reports with the Ministry of Commerce and the Revenue department!!!

And since you (OP) are obviously listed on the company registration they will certainly find you eventually.

opalhort

[Bagwan]

I cannot for the life of me understand why you would need to pay money to wind a company up?

I mean, given the statistics that show that almost 80% of new business close the door in the first two years then why would there be any kind of 'fee' to wind a company up?

Surely most companies would just shut the doors and be done with it.

I sought professional advice about winding a Thai company up and was told that the process took anything up to 5 years and that it would cost somewhere between 50K and 100K. Why so much I just don't know but then TIT. Presumably only a professional person can liquidate a company and you can bet that they will gouge out a sizeable chunk.

It used to be the case in the UK that if you didn't render audited accounts then the Company Registrar would wind the company up. So many fly by night companies would close one day and then open up in a different name the next that the whole thing looked dodgy.

[Nio]

12,000 thb is very reasonable for an accountant to close up the books.

However, if you do not have any money to pay, simply close the doors of the company, change address to your home and continue to file monthly tax statements of no sales

How much equipment do you have if any? PM me if you have any equipment

[ericthai]

Yes, In Thailand you are suppose to properly close the company filing everything with the government. However I do know few guys that opened companies and then it did not work out, just let it ride out, never filing any papers. One of my thai friends said that after 2 years of no accounting reports the Thai government closes the company registration.

I don't think the Thai government has the time to hunt everyone down. they cant even do anything about all the shops that are operating and dont have a registered company and paying taxes, of course they are all Thai people and you being a falang is a different story. I suggest you follow the law and close the company properly.

[mortenaa]

I don't think the Thai government has the time to hunt everyone down. they cant even do anything about all the shops that are operating and dont have a registered company and paying taxes, of course they are all Thai people and you being a falang is a different story. I suggest you follow the law and close the company properly.

I think you are right. My friend had a company 5 years ago. But he never shut it down, and never filed any papers. So technically I guess he still have a company .. But he never had a problem with it..

[12DrinkMore]

Yes, In Thailand you are suppose to properly close the company filing everything with the government. However I do know few guys that opened companies and then it did not work out, just let it ride out, never filing any papers. One of my thai friends said that after 2 years of no accounting reports the Thai government closes the company registration.

I wish somebody could post the real law on this. Looks like I'll have some time tomorrow and if so I'll pop over to the company registration place and try to get the correct story. I have been quoted between 18,000 and a ridiculous 60,000 plus to close down a company that has never traded. 12,000 Baht seems a very reasonable price for the effort involved, public announcements, final accounts etc.

[opalhort]

If a foreigner's WP or visa/extension of stay is tied into the company then a clean liquidation of the company is a must!

Otherwise he may face problems when applying for a new WP under a new company in the future.

opalhort