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thaitanic

How To Close Thai Limited Company?

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Thanks to Chang paarp for that sensible advice, and thinking about it i had done as you suggested before but forgot (i.e. interest free loan from director, me, to compnay paid back later).

Now does anybody have any advice comments particularly on keeping a company but making it dormant or as good as dormant - whats the minimum amount of trading you can get away with? Any beauracratic problems to be aware of? Presume you have to do audit end of year as always.

Thanks

Edited by Bredbury Blue

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Thanks to Chang paarp for that sensible advice, and thinking about it i had done as you suggested before but forgot (i.e. interest free loan from director, me, to compnay paid back later).

Now does anybody have any advice comments particularly on keeping a company but making it dormant or as good as dormant - whats the minimum amount of trading you can get away with? Any beauracratic problems to be aware of? Presume you have to do audit end of year as always.

Thanks

This same question is being asked in this thread;

http://www.thaivisa.com/forum/index.php?showtopic=71883&st=0

Greg from Sunbelt siad this:

Pages and pages have been posted on TV about owning a house via the company route...and the legality or quasi-legality of this way of holding such an important (and valuable asset)...

BUT...What if you do trade? What is an acceptable level of turnover???

If you owned say a small bar or restaurant or any other type of business would everything be "hunky-dory?"

What about (for the sake of argument)...a noodle stand? :o

What actually has to go through the books or be shown to make it "legal"

Many thanks

No clear line in the sand except filing a 0 tax return every year as there is no special status for holding or dormant companies. The company must have a purpose other than owning real estate. If that’s to have a noodle shop, the Land Dept would confirm, nothing wrong with that objective. A noodle shop after all is a business and needs a location to operate. Of course if the house is in a community, a proper maintenance contract should of stated no restaurant or retail shop is allowed.

All companies must prepare the financial statements at the end of the year and file with the authorities. If the companies files tax returns for many years with a zeo income, it can be inspected by the government on a random basis. Therefore, there needs to be activity in your company. The financial statements are audited by a Certified Public Accountant signing and having opinions in the auditing report attached to the financial statements. The auditing opinions will have either clean opinions for the financial statements without any questions raised by the CPA, to opinions with remarks in case the CPA has found problems in the accounting records, and refuse to accept them. The opinions of the CPA will obviously affect the ideas of the government who use or inspect these financial statements.

www.lawyer.th.com

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So if i undersatnd you correctly, to my work permit as MD of my company i could the employment with this client as a further job - is that correct? Presumably then the money i receive from them as a direct employee would be taxed at source by them, and if i earn any other money through my company i would pay income tax through my company? In summary then the work permit would refer to a position, company, location, etc x 2 companies.

Correct. And you'd be liable to pay the correct income tax based upon your combined income.

Your workpermit will cover two positions (or more) at separate companies and separate locations as long as you get them appended to your work permit accordingly. If your new employers really want you to turn your existing work permit in and just have your new job as your sole position of employment... I'd back out of that.

As for your dormant company? As long as you keep up with the ongoing reporting expense, they really can't do much to you. What's the worst they can do? Tell you to shut down your company?

g-

Edited by gwkenny

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Hi,

I have a company for about 6 years now. I wanted to start serious business with it, but instead I took a job offer. Now, 6 years later, the company is dormant. It has a piece of land on the company name, but I am doing nothing with it. I tried to shut down the company, as it consumes about 5 to 10k baht/year, but transferring the land to my wife's name will result in paying tax over the transfer, which is simply too high for me.

I was called to the revenue department 1.5 year ago to explain, and they kind of urged me to shut it down (zero income all these years). I talked to some laywers and found out that there is nothing the government can do about it simply because there aren't any rules for this situation.

The land is for sale already for two years and as soon as I sell it, I will close the company (any takers? 1.5 rai with high wall between phutthamonthon and nakhon chaisri area(338 road))

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Finally got round to having a word with my accountant (well my thai wife discussed with the thai accountant so take this with a pinch of salt).

She reckons that if making a company dormant its no problem for as long as you want, and suggests the following steps:

1. Record or advise the ministry of finance, and file zero for tax returns every month.

2. Advise Social security office that there are now no employees.

Thats it she reckons until you want to restart using the company.

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