A company can consider closing down for many reasons. Some of the reasons can be due to loss and unable to carry out business operations, market fluctuation and direct competition. There might also be instances where the shareholders may look into investing in other business ventures which means closing down the current company. Closing a Thai company can be a lengthy and cumbersome process. The process to close a company must be done efficiently and under lawful procedures. If the shareholders decide to close the company, the primary step is to finalise and audit the company’s accounts to have a final look at the assets and liabilities. Any ongoing legal and accounting matters must be cleared off before the closing can be started. A liquidator must be appointed to wind up the company’s affairs and register it with the Ministry of Commerce. Following Section 1247 through 1273 of the Civil and Commercial Code of Thailand, the process for voluntary liquidation and dissolution of a private limited company is as described below:
A limited company may also be closed down in the event of bankruptcy or if the company is unable to pay back its debt. This will require a court order, and the court will appoint a liquidator to carry out this process if approved. The legal paperwork and filings may be cumbersome for most owners. It is highly recommended to appoint an experienced legal firm to carry out these tasks in a timely and efficient manner.
The timeline for closing a company in Thailand can vary from 45-90 days depending on the complexity of the financials, the registered capital, the availability of corporate shareholders and other minor variables.
Our legal professionals and accounting team have negotiated and navigated company closures in Thailand on numerous occasions. Our many years of experience have allowed us to minimize tax implications and complete the process in the shortest period of time. Combined with our reasonable rates, we offer one of the most effective company dissolution services in Thailand.
Ashmin, Acclime business services coordinator