Closing Down Thai Limited Company (Amity Treaty Company)

[StrongEagle]

Hello,

My wife and I (Americans), previously living in Singapore but now back in the USA, have had a Thai American Amity Treaty Company registered in Thailand for many years. It has had zero business or other activity for the last few years and we want to shut it down. I have been unable to find anyone who would simply want to take this company.

My Thai accountant has quoted about 42,000 Baht to shut it down, plus another 15,000 Baht for the final financial reports. I see that this is somewhat above current market rates but not outrageously so. I've looked at this thread: http://www.thaivisa.com/forum/topic/56761-how-to-close-thai-limited-company/

I shut my Malaysia company down for about 500 Singapore dollars, and I will soon shut down my Singapore company for about the same amount of money. I just cannot see paying so much money to shut down a company that has had zero business for multiple years.

Are there downsides to walking away? Right now, the company has a Thai bank account with a minimal balance. It owes my Singapore company several thousand Baht for covering accounting services and the serviced office which is its registered address.

It had initially picked up a work permit (now expired and turned back in) by the accounting transaction of putting a million or so Baht into the bank account (on paper) which was then immediately lent back out to a director. Beyond the accounts payable noted above, this is the only liability. There are no assets. There are no taxes due. The company has always followed the letter of the law with respect to all dealings, filings, etc.

Edit (20 minutes after initial post) - I believe the director's loan also included the necessary paid up capital to form the company. Were someone to take on this company, the loan would transfer to the new director. Yearly interest payable to the company is minimal.

What are the downsides that I might incur by simply walking away? My service office payments are current, and I will simply stop them and instruct that all mail be returned or put in the trash. I'll close my bank account. I'll pay any accounting fees that might be due to my Thai accountant.

I'd appreciate any insight into this matter... or... take this company from me.

TIA.

[StrongEagle]

With the dearth of responses, perhaps I can ask the simple question: What are your views on what will happen if I simply walk away from the company?

Thank you.

[StrongEagle]

It seems that I have two alternatives to actually following the process to close down this company.

a) Walk away - although I cannot find definitive information about the consequences - not many so long as all taxes and fees are paid, there are no debts, and no labor issues (there aren't).

Give the company away to someone that wants it - I'm trying to find out what this would cost.

Still trying to move this down the road. Opinions appreciated.

Cheers.

[EOB1948]

I had the very same question as I am leaving and find the prices to shut it down are somewhat outrageous- I had a conversation with the head of the local DBD and he told me over 3000 foreign companies in the province are no longer paying taxes, but are still listed as operating . He blamed greedy accountants for the exorbitant fees.

So it'll be a while 'till they get to auditing you. If you are leaving Thailand, just walk away. If you plan to stay however there can be criminal repercussions and you may get black listed from entering the country.