What is a dormant company?
A dormant company, also known as a shelf company, is an entity that has been legally registered but does not engage in any business activities.
What are the benefits of a dormant company?
The benefits of a dormant company are as follows
1. Have a company for future use
Instead of dissolving your company, you can have a dormant company if you want to relaunch the business in the future. It can also reduce the hassle of having to set up a new company.
You can also set up a company in advance and declare it dormant for an indefinite period as long as you comply with the accounting requirements.
2. Protect intellectual property
Dormant companies can protect your company’s name and prevent other companies from using it. If you dissolve the company, the company name will be available for other companies to use, and you will not be able to use the company name again.
A dormant company can also protect your company’s logo, slogan or designs from being used by other companies by registering it with the Bangkok Trade office.
3. Reduce costs
A dormant Thai company can reduce maintenance costs as you will only need to maintain the company’s annual accounting and rental fees for virtual offices.
4. Used as an investment vehicle
The dormant company can also be used as an investment vehicle by owning another company’s stock or assets.
Annual compliance requirements of a dormant company
A dormant VAT registered company must file VAT (form PP.30) monthly even if there have been no business transactions. Failure to file VAT will lead to a fine of THB 500 per month.
Corporate income tax must also be filed two times a year, which consists of the half-year tax and yearly tax.
Financial statements must also be audited by an auditor and submitted. If the financial statements are not submitted for three consecutive years, your company may be removed from the Department of Business Development’s (DBD) system and become a defunct company.
To recover your company, you will need to make a request to the court to order the Registrar to enrol the company back into the system in accordance with section 1246 (6) of the Civil and Commercial Code.
Conclusion
If you need to halt your business but do not want to dissolve the company, you can obtain a dormant status and may continue the business whenever you like. Companies in Thailand can hold a dormant status for an unlimited period of time. If you have any questions about Dormant Company or setting up a Company in Thailand, please do not hesitate to contact UnionSPACE.
Tel: +6620360600
Line: https://lin.ee/sqS7VlQ
WhatsApp: https://wa.me/66620155533
Website: https://unionspace.co.th
