Closing A Company - Need Some Suggestions

[loopta]

I'm in a bit of a bind. I started a company here in Thailand a little more than a year ago for offshore contracting. Since then my main client has went under and I can no longer afford to keep the company going so I must close it. However, the quotes I have been getting are between 50,000-60,000 baht which I simply cannot afford. Does anyone have any suggestions as to what some one can do who needs to close a company but cannot afford to close it? Surely there must be something some one can do in this situation.

Thanks in advance for any help and suggestions

[maxtingtong]

sell/give away for free?

Edited September 28, 2010 by maxtingtong

[scorecard]

You could 'advertise' that your prepared to transfer the company to new owners, which is quite legal and incurs the cost of transferring the shares to a new name plus some formalities. My understanding is that this should cost about 10,000Baht all up. Perhaps offer to pay all of these cost yourself or perhaps 50/50 with the new shareholders.

But be aware that people who might be looking for a company name might feel it's risky, because maybe there are taxes or some other laibilities which are not yet paid.

Good luck.

Edited September 28, 2010 by scorecard

[NHJ]

closing a company is usually 5000 baht, no one mentally sound can ask you 50.000 baht to close a company that costs 25.000 baht to open(2 million capital).

[jayinoz]

What a joke, whomever quoted that figure... I guess if someone can take advantage they will- Shop around if it is a necessity. Anyway 5K will do the job. Or leave it non active until you may wish to use it again.

You state you are in a Bind- due to a supplier becoming bankrupt i gather u wish to take off and leave liabilities behind (That being your bind).

Not have your own debts follow you. Just because your supplier is bankrupt does not let you off the hook in regards to your liabilities and any

creditor may take you to court to get what is owing. You may be liable even if you closed it down and your assets at risk. If you transferred them out of the company whilst operating and the other party can prove it. Sounds like you may be wishing to pull a bit of a Taksin. Swapping and changing companies and their assets. Making life very confusing for those who wish to track your assets and liabilities.

Directors may be held accountable for any liabilities owing in many circumstances. You will not be in the clear by simply closing the company register. Consult a good lawyer if you owe a fair bit- I can only think this is why you are asking and stating you are in a Bind.

Most Bankrupts claim another became bankrupt to force them out of business. Ends up being a domino effect.

The thing in Thailand is unless it is a large sum, you can simply open up and new company and keep trading. You can in other countries as well however in Farangland typically a bankrupcy can follow you around for many years. The laws are not clear and concise in terms of Farang business owners closing up. As you are meant to be a minor shareholder, so the other Directors listed are liable also.

I always thought what are the implications of Thai people faking to be a Director of your company, as some Farang have done and simply paid the Thai a few bucks to hand their shares over into a blank name. They may be liable, so they risk a fair bit for a few bucks IMO.

Chok Dee

[loopta]

Not really sure what your getting at. I have no plans to take off, I'll I was asking for was suggestions on how to close a company if you don't have the 50k the lawyers are asking for. If 5k will do the job, can you recommend where I can get it done for 5k?

And thanks for everyones suggestions, I might go ahead and try putting it up for sale.

BTW, the 60k quote was from a reputable law firm that advertises on this forum frequently... Nothing is owed on the company, we just cannot afford to pay the lawyers what they are asking, its that simple.

What a joke, whomever quoted that figure... I guess if someone can take advantage they will- Shop around if it is a necessity. Anyway 5K will do the job. Or leave it non active until you may wish to use it again.

You state you are in a Bind- due to a supplier becoming bankrupt i gather u wish to take off and leave liabilities behind (That being your bind).

Not have your own debts follow you. Just because your supplier is bankrupt does not let you off the hook in regards to your liabilities and any

creditor may take you to court to get what is owing. You may be liable even if you closed it down and your assets at risk. If you transferred them out of the company whilst operating and the other party can prove it. Sounds like you may be wishing to pull a bit of a Taksin. Swapping and changing companies and their assets. Making life very confusing for those who wish to track your assets and liabilities.

Directors may be held accountable for any liabilities owing in many circumstances. You will not be in the clear by simply closing the company register. Consult a good lawyer if you owe a fair bit- I can only think this is why you are asking and stating you are in a Bind.

Most Bankrupts claim another became bankrupt to force them out of business. Ends up being a domino effect.

The thing in Thailand is unless it is a large sum, you can simply open up and new company and keep trading. You can in other countries as well however in Farangland typically a bankrupcy can follow you around for many years. The laws are not clear and concise in terms of Farang business owners closing up. As you are meant to be a minor shareholder, so the other Directors listed are liable also.

I always thought what are the implications of Thai people faking to be a Director of your company, as some Farang have done and simply paid the Thai a few bucks to hand their shares over into a blank name. They may be liable, so they risk a fair bit for a few bucks IMO.

Chok Dee

Edited September 28, 2010 by loopta