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Had my company for less than a year. Main reason was for WP. I no longer need the WP (and it's already expired) and the monthly fees for accounting and other fees for audits etc are out of control. 

 

I asked the team that set it up to shut it down. This isn't Delaware where you go online and pay $200.

 

Apparently in Thailand, if your business fails, they say, 'that's nice, now go find 80,000 Baht to close your company'. 

 

The lawyers have said that if there is no movement for 3 years that the company may be considered defunct and deleted from DBD database and that's that. But they don't know / don't want to say if I would have problems being in Thailand listed as a Director of a company that has no business activity, but also doesn't file any paperwork.  I don't ever plan on ever registering another company in Thailand again, but I may at some point want a work permit again.

 

Does anyone have experience in letting a company go defunct vs paying to have it shut down? Paying 80,000 Baht more when the company never had any revenue of any type seems somewhat insane. But are there any penalties to me as a Director for simply walking away? And would there be any problems if one day another company wants to issue a work permit to me?

 

 

 

Edited by ChiangMaiThai
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  • ChiangMaiThai changed the title to Let company go defunct or pay 80k?

Assuming your company doesn't own  land/property and does absolutely no trading

I'd just wait the 3 years..

I think you can also  close the company yourself for much less than 80,000 baht.

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1 minute ago, johng said:

Assuming your company doesn't own  land/property and does absolutely no trading

I'd just wait the 3 years..

I think you can also  close the company yourself for much less than 80,000 baht.

Thanks. The company literally does nothing. No assets. Never any bank deposits. It was there for the WP and a future business idea that has't panned out. The firm that wants 80,000 Baht sent me the cost breakdown in case anyone is curious. It's a hell of a process to walk away from a company that has literally done nothing. 

 

 

1 Legal process to close limited company 22,500.00

2 Closure Audit (basic fee) 25,000.00

3 Cancellation of TAX ID with revenue department 5,000.00

4 Cancellation of social fund account 3,000.00

5 Cancellation of Personal TAX ID and work permit 2,500.00

6 Minutes of meeting to close corporate account 2,000.00

7 Newspaper publication 2,000.00

8 Notification to shareholders 2,000.00

9 VAT Filings (3 months) 6,000.00

10 Account management 2,000.00

11 Travelling fees and expenses 3,500.00

 Sale Discount 15% -11,325.00

 

Government fees

Government Fee (Company closure with DBD) 4,000.00

Government Fee (Other Government Fee) 6,000.00

Government Fee (Certification of Document) 1,500.00

Government Fee (Duty Stamp) 1,000.00

 

 

 

 

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17 hours ago, ChiangMaiThai said:

Thanks. The company literally does nothing. No assets. Never any bank deposits. It was there for the WP and a future business idea that has't panned out. The firm that wants 80,000 Baht sent me the cost breakdown in case anyone is curious. It's a hell of a process to walk away from a company that has literally done nothing. 

 

 

1 Legal process to close limited company 22,500.00

2 Closure Audit (basic fee) 25,000.00

3 Cancellation of TAX ID with revenue department 5,000.00

4 Cancellation of social fund account 3,000.00

5 Cancellation of Personal TAX ID and work permit 2,500.00

6 Minutes of meeting to close corporate account 2,000.00

7 Newspaper publication 2,000.00

8 Notification to shareholders 2,000.00

9 VAT Filings (3 months) 6,000.00

10 Account management 2,000.00

11 Travelling fees and expenses 3,500.00

 Sale Discount 15% -11,325.00

 

Government fees

Government Fee (Company closure with DBD) 4,000.00

Government Fee (Other Government Fee) 6,000.00

Government Fee (Certification of Document) 1,500.00

Government Fee (Duty Stamp) 1,000.00

 

 

 

 

Well i cant speak for all the fees but id find a real accountant because your getting shafted. 

 

2000 baht for minutes of meeting is crazy 

 

Vat filing 0 6000 baht its the same paper with 3 different dates. 

 

25000 for audit is also out of line

 

I would go to the local dbd and see what the deal is they are very helpful 

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My WP was expiring on May 20th but I was stuck in Canada. My staff went to Labour Dept and asked if I could take my medical in Canada and submit that for the renewal. They refused. So I was going to let it lapse, but luckily my staff was told on the spot that it was a 20,000 Baht fine if I did not cancel it on my own within 3 weeks (it could have been a month). It seems they do this to ensure we keep our paperwork in order and make their life a little easier. So I cancel, and was immediately told that my NonB, which was good until Feb 2021, was automatically canceled. So now I have to start all over. Lots fund huh?

 

Re the wind up costs,  I have been quoted similar, but agree with Yankee99 that you might be able to do some or most of it on your own if there never was any revenue or expenses or VAT, etc. Paying 25,000 Baht for an audit is plain highway robbery. I was a CPA in a previous life, and can tell you that it will a matter of minutes to get your audit done.

 

Good luck. Let us know how the wind up works for you. I might be winding mine up too and moving on to other pastures.

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You are being taken for a ride.

 

the cost of an accountant including all fees to close a simple company including all those things you listed is about 10k

 

I would find an honest local accountant and ask them a price to help close your company

 

as someone else mentioned, you've been fleeced

 

 

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I have a company here, and if I recall correctly my lawyer, whose become more of a friend over the years told me its easier to just walk away from the company than officially close it here. 

 

The fees look steep, I would get pricing from another law firm, and avoid farang run places. That being said I recently closed a company in HK and it cost me about 100k.

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If you don't do the shut down properly in Cambodia you are subject to fines and penalties. Every business needs to have a physical address so at the very least you end up liable for unpaid withholding tax on rent up to the date the company/ business is cleared by the tax department (an audit) and shut at the MoC. Failure to pay results in prosecution, seizure f bank accounts, and outward travel ban. The fees and processes look very similar, though there is no court filing required in Thailand by the looks. 

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You're being taken for a ride.

I spoke to the law firm (not an accountant) that I deal with in Pattaya about a company closure.
For a company with no assets, they charge 46,000 broken down as 
Meeting Report - 2,000
Company Update - 3,000

Final Balance Sheet - 16,000
Company closure - 25,000.

To be sure, a lot of the cost of each of those items is probably pure profit for the law firm but the flip side is, do you really think you could do all that yourself ?

If there is a transfer of assets (i.e. land/house) there would be an additional 10,000 baht for the transfer (plus other expenses).

(Not including additonal fees/taxes associated with selling a house/condo, even if it's just a "paper transaction" and no money changes hands. Like if you signed over a house to your wife. Even though no money changes hands (in theory), you'd still have to pay the taxes and transfer fees as though she handed you the full amount in cash. Apparently there'd also be a fee if no "cheque" was involved as they normally want a bank cheque to prove the payment was made.)

If you are hoping to get another WP in the future the same way (using your own company and hiring the required staff to meet the WP requirements) then you'd probably want to close the current company down properly, especially if you are staying in the same area.
Your name/passport/address will go into a database and if they flagged your previous company then it could be a problem. 

If you are planning on leaving the country and never coming back, well then, take the money and run ! I'm sure Thailand has hundreds of "notional" companies that are simply abandoned every year, for the same reasons.

How good of a database they have to track them (and their owners) is another question. I'd suspect it's not that great (or that anyone may even check) but I could  be wrong.

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