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COMPANY DISSOLUTION

The dissolution or liquidation of a Thai company is a lengthy process that requires approval from both the Ministry of Commerce: Department of Business Development, and the Revenue Department. After registering the dissolution, the Revenue Department will conduct a full scale tax audit of the company. The Revenue Department will not approve the dissolution until all tax liabilities and fines have been paid. Therefore, registering a dissolution can take anywhere from 6-12 months due to the time it takes to complete the tax audit. 

COMPANY DISSOLUTION PROCESS
Step 1: Registration of dissolution with DBD

The first step in the liquidation and dissolution process to close a company in Thailand is the registration of dissolution with the Department of Business Development (DBD) before which of the following must be carried out by the company:

  • Hold a board meeting to approve the dissolution

  • Newspaper announcements to hold two general meetings of shareholders to approve of the dissolution, appoint a liquidator and an auditor, and send letters to invite the shareholders to the meetings and inform creditors about the proposed liquidation 

Step 2: Documents submission to the Revenue Department

The next step for dissolving the company in Thailand after the liquidation has been registered is as follows:

  • Have the balance sheets, accounts and financial statements of the closing company prepared by an accountant and certified by an auditor

  • Ensure that the business affairs are settled and that all responsible government offices have been informed about the company closure

  • Newspaper announcements to hold two general meetings of shareholders to approve of the financial statements of the closing company

  • Inform and request for approval from the Revenue Department to liquidate and dissolve the company and return the company's VAT certificate

  • Hold a final shareholders' meeting after which the dissolution of the company in Thailand can be registered with the DBD, where the company's books, accounts, documents etc. must also be submitted to the DBD

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