Closing down a Thai company

[melovethai]

Hello all

I have a registered Thai company one year ago and it is not deriving any income(not operating). There are many reasons it has not made it worthy to start our business here. I have asked our accountant to advise on how to close it down and have a vehicle transferred into my name since i finance the vehicle and the company still owes me 100% of the costs for the vehicle.

I did not get any information on the vehicle just a list of costs to close.

We live near Nakhon Ratchasima but the company is registered in Bangkok with an account at the Bangkok bank in Bangkok.

If someone has already gone through this process may i ask how much it was.

Does anyone know about the vehicle process.

copy of the reply below. Thank you

If you need to close company you have to do company balance sheet for this year 2016 before for can close your company.

If your company had a company bank account we will require your company last year bank statement until present.

Our firm offers this service as details and fees below;

Year Ended Close Financial report year 2016 20,000 THB

Annual Audit

Annual Corporate Tax Report (Por Ngor Dor 50)

Advertisement fee & Registered mail to all shareholders 4,000 THB

Company closing 50,000THB

Total 74,000 THB

Vat 7% 5,180THB

Grand total 79,180THB

All process will takes approx 6 months to 12months

Please note that our fee is exclusive of payable tax and government charge/ fine (if any)

[dotpoom]

I sold my house to a Thai person who didn't need the company.....It cost me 25,000Bt to close it (about the same as it was to open it) with an accountant.

P.S. I remember mentioning it to a friend after I had closed it.....He wanted to know why I didn't sell it to somebody. a ready made company ...let's say...for half price. I had thought of it but didn't want to take a chance selling it to somebody I knew nothing about.

PPS...I am selling my present house and I think I will be doing the same thing again, it will most lightly be a Thai that buys the house (if I ever get a buyer that is, very difficult these days).

[prism]

The costs seem very high. Several years ago, I closed a company and the total costs came to around 28,000 baht. Note the company had sold it's assets before being closed.

[TravelerEastWest]

You should keep the two tasks separate.

Have the company transfer title to you first.

Then close teh company.

Closing seems slow and expensive in your example.

[fletchsmile]

For the vehicle:

that's quite simple to do and any decent accountant should be able to process it very easily. Just a case of deciding the transfer price so the ccountant knows what entries to book, Examples:

You could accept the car as full payment of the loan amount due to you. In reality it's worth less than the loan. Also this may create a slight gain for the company on disposal which may be taxable depending on company profits etc. May be simple and no big deal though.

Or you could transfer it to yourself at net book value (cost less depreciation), which would be no gain/loss for the company, but as NBV would be less than the loan owed it would only partly cover what's due to you.

Or pick any other price. Whatever way it's not difficult.

For the company:

Fees seem a bit high:

- They would have to mail to all shareholders and advertise closure. Doubt that would cost 4k including their time. But accountancy firms like to mark up their "out of pocket expenses".

- 50k seems high for the work involved of closing.

- Then again your annual accounting fee also seems a bit high at 20k for a Thai company not doing much. But one relative to the other not too bad.

Not excessive, just a bit higher than if you were shopping around for cheapest price.

So next point: It depends partly on the quality of your accountants. No way I'd want to get out of bed and do your year end closing and sign off your report for 20k even if I was allowed to in Thailand BTW

Personally I wouldn't want to bother shopping around for another firm at this point. You then have to get into potential quality issues of who you've hired. Unless you go for a reputable Big name or second tier firm, who would cost you.

What I would do though is go back to the same people say you think it's high and try and negotiate a reduction. Google around for companies like Sunbelt what they charge to back up your view it seems a bit expensive. You're negotiating a contract after all. No harm in trying for a better price.

Edited June 16, 2016 by fletchsmile

[fletchsmile]

I sold my house to a Thai person who didn't need the company.....It cost me 25,000Bt to close it (about the same as it was to open it) with an accountant.

P.S. I remember mentioning it to a friend after I had closed it.....He wanted to know why I didn't sell it to somebody. a ready made company ...let's say...for half price. I had thought of it but didn't want to take a chance selling it to somebody I knew nothing about.

PPS...I am selling my present house and I think I will be doing the same thing again, it will most lightly be a Thai that buys the house (if I ever get a buyer that is, very difficult these days).

Sounds more reasonable than OPs 50k. Then again your company wouldn't be doing much.

Does raise a couple of additional points though if the company is being used to acquire property for a foreigner:

1) Given potential issues around a foreigner using a company to buy a house, especially if land is involved, someone might consider or even expect paying a little more just to ensure everything runs smoothly. Depends how legit or shall we say grey what was done LOL

2) Again given potential issues round this, it's much cleaner to close the company rather than sell it. End of story. Rather than as you say sell to someone you know nothing about

[Farangdanny]

I sold my house to a Thai person who didn't need the company.....It cost me 25,000Bt to close it (about the same as it was to open it) with an accountant.

P.S. I remember mentioning it to a friend after I had closed it.....He wanted to know why I didn't sell it to somebody. a ready made company ...let's say...for half price. I had thought of it but didn't want to take a chance selling it to somebody I knew nothing about.

PPS...I am selling my present house and I think I will be doing the same thing again, it will most lightly be a Thai that buys the house (if I ever get a buyer that is, very difficult these days).

WOW.WOW.and WOW again.

Who dreams up these costs. I have just closed TWO companies, that both owned house, sold to Thais who didn't want the companies. They had bank accounts.

I used an accountant and he charged me 12,000 Baht for each one, EVERYTHING included. It took just over 3 months and I now have all the official 'Closed' documents !!!!

[fletchsmile]

I sold my house to a Thai person who didn't need the company.....It cost me 25,000Bt to close it (about the same as it was to open it) with an accountant.

P.S. I remember mentioning it to a friend after I had closed it.....He wanted to know why I didn't sell it to somebody. a ready made company ...let's say...for half price. I had thought of it but didn't want to take a chance selling it to somebody I knew nothing about.

PPS...I am selling my present house and I think I will be doing the same thing again, it will most lightly be a Thai that buys the house (if I ever get a buyer that is, very difficult these days).

WOW.WOW.and WOW again.

Who dreams up these costs. I have just closed TWO companies, that both owned house, sold to Thais who didn't want the companies. They had bank accounts.

I used an accountant and he charged me 12,000 Baht for each one, EVERYTHING included. It took just over 3 months and I now have all the official 'Closed' documents !!!!

Didn't you ask for a discount on the second one

The work and time involved for the accountant to close 2 companies is not much more than closing one. Certainly nowhere near double

Economies of scale and all that.

I wonder if it occured to youthat In reality if relecting activity based costing he's charged you say 20k for the first one and 4k incremental cost for the second one.

Just he's told you 12k each so you go WOW that's cheap

Edited June 16, 2016 by fletchsmile