FAQ

• What happens if you did not submit an Audited Accounts and Account Closing for your company for several years?

  Talk to our accountant and we will be able to assist you by giving you a full run down of the fees that you might have incurred (accounting fee, professional fee, actual penalties and others) and you can decide whether to go ahead to get your company up-to-date or not. A company that has not been complying with the Thai Gov't regulation for over 3 years may be suspended and the Director may be summoned for investigation and if the Director is a foreigner, he or she may be stopped at the immigration to assist with this matter.

• Do I need to submit my Audited Accounts and Account Closing if I only use this company to hold my Thai Property?

  It's important to keep your Dormant Company up to date if you're using it to hold a property. Failure to do so may result in your company to be reclassified as a Non-Alive (Defunct Company) in DBD system and to reactivate it, you will need to request it from the court to order the Registrar (DBD) to reactivate it. This process can be complicated and costly therefore it is best to ensure your company, especially your Dormant Company complies with this requirement.

• How long can you keep a Company as Dormant?

  In Thailand, there is no limit time for keeping a Company Dormant as long as your company still submits its audited financial statement and account closing every year.

• Can a Dormant Company function without a Bank Account?

  Yes, you can. If you really intend to keep your Company as Dormant, it is best not to register a Bank Account with it. Once you have a bank account, there may be ad-hoc charges from the bank as well as other matters which may result in your company to cease to become a Dormant Company and become an active company with very little transactions.

• What is the best amount of Registered Capital for a Dormant Company?

  As little as possible. We would recommend a THB10,000 Registered Capital if you intend to set up a Dormant Company. You can always increase the capital at a later stage if you want to turn the company into an active company.

• What happens if you do not properly liquidate (close) your company in Thailand?

  According to Thai Law, every registered company must comply with basic requirements such as submitting its annual audited financial report and account closing and if you fail to do so after some time, DBD and Revenue Department will ask the Thai Police assistance to find you. The Thai Police will issue a summon in the Director Name and send it by hand to the last registered address and after 3 attempts, they will submit to the court that they are not able to locate you and the court will issue a letter to the immigration (if the Director is a foreigner) for further enforcement which may include stopping you at the immigration when you are entering or leaving Thailand.

• The question?

  In our humble opinion, it is best to address all the lateness and penalties by having a Thai representative to approach the said departments and to find a resolution instead of being caught off guard.

• I received a Police Summon Letter for not complying to the End of Year Audit and Financial Report Submission requirement. What to do?

  If you are the Director of your company, you may receive a Police Summon Letter (in Thai) to present yourself at your district Police Station for investigation. You may contact us and we can represent you to meet and explain your situation to the Police and try to resolve it. Should there be an official penalty, we will advise you and assist you to pay it and an official receipt will be provided.