Closing A Thai Company - Is It Necessary?

[rickjames8]

Hello,

8 years ago I set up a company to buy land in Thailand. I bought, developed and sold my little piece of paradise and have now moved back to the US. I tried to sell my company before I left but just didn't have the time. Now I have an email from my accountant saying that I'll need to do year-end reports (17,000b) and closing fees on the company (20,000b).

I had planned on just letting it go and doing nothing. Is this a bad idea? I will probably want to return to Thailand someday, at least for a vacation or two. Can they bar me from the country? Fine me? Is any of that likely?

-Rick

[InterestedObserver]

Bared from entering Thailand, I don't think so. You need to be convicted in a Thai criminal court for that to happen. You certainly will not be able to repeat your business adventure again without first settling accounts.

[sbk]

Moving to business forum

[p_brownstone]

If you have Thai Directors - or even Farang Resident in Thailand - they will be subject to legal penalties if the Annual Accounts are not submitted to the Revenue Department for each financial year.

If you were a Director but no longer in Thailand I believe there would also be an outstanding liability should you return to Thailand in the future.

I am not sure about the VAT Returns which should be submitted monthly - there may be some legal liability there too.

Patrick

[BookMan]

I don't know your financial situation, but in dollars u aren't talking about a lot of money to tie up loose ends

[guzzi850m2]

I think the max penalty is 200.000 bath for not doing proper accounting which has to be summited each year.

When I realized that my second house here will not be owned in a company name I shut it down. First house was sold to a Thai.

If I was you, I would shut it down so you don't have any loose ends that can come back and haunt you.

[SunDaRi]

I opened a shell company three years ago and after the first year, I didn't follow up to close it and I am still living in Thailand. As I understand from my lawyer friend, as long as the company is not making any profit - I don't have to worry.

[p_brownstone]

I opened a shell company three years ago and after the first year, I didn't follow up to close it and I am still living in Thailand. As I understand from my lawyer friend, as long as the company is not making any profit - I don't have to worry.

Whether the Company makes a profit or not - even it's doing no business of any sort - you still have to submit Audited Accounts showing that.

Patrick

[hhgz]

According to any attorney, you'll need several 10s of thousands of baht. In reality, it's not expensive at all. Here's what you do: walk away without paying anything to anybody. After five years of not getting payment or response to their letters, the government will close the business, and it can never be reopened.

[p_brownstone]

According to any attorney, you'll need several 10s of thousands of baht. In reality, it's not expensive at all. Here's what you do: walk away without paying anything to anybody. After five years of not getting payment or response to their letters, the government will close the business, and it can never be reopened.

If you do not submit annual Audited Accounts - even if there are no transactions - the Directors will be subject to legal action by the Ministry of Finance, you cannot just walk away with no penalty. Assuming you have Thai Directors they will be extremely upset if you try this - they could be banned from holding Directorships in any Company thereafter.

Patrick

[KRS1]

The way around closing a company and paying fees is to file for 'dormant' status.

This is the best solution, if you decide to come back you won't have to go through all the hassle of filing for another company.