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.
Dormant Company in Thailand
End of Year Audit and Account Closing
Every company in Thailand is required to submit their Audited Accounts / Financial Report to the Revenue Department and DBD at the end of every financial year and regardless if your company is actually a sleeping / dormant company, you must also submit this Audited Accounts / Financial Report.
Note: if your company is a VAT Registered Company, you must submit your monthly Tax Report (even though there may be zero transaction to the Revenue Department). Non VAT Company is exempted from this.
What is considered a Dormant Company in Thailand?
A dormant company is one that has no ‘significant accounting transactions’ during its financial year. Such companies are considered inactive for Corporation Tax purposes because they are not involved in any kind of trading activity, which includes:
- Buying and selling goods and services
- Renting or purchasing property
- Operating payroll
- Paying directors’ salaries
- Issuing shareholders’ dividends
- Managing investments
- Receiving dividend payments
- Earning interest
- Paying bank charges and fees
- Paying company formation costs and accountancy fees through the business bank account
If your company falls under this category, you can enjoy a reduced fee to have your company account audited, closed for the financial year and submitted to the relevant departments such as DBD and Revenue Department.
How much is our Account Closing Fee, Account Audit Fee and Submission Fee for a Dormant Thai Company?
Scope of services included
Account Closing Fee, Account Audit Fee and Submission Fee for a Dormant Thai Com
|Preparation for accounting records such as Journal, General Ledger, Trial Balance and Financial Statements and issue Financial Statement in Thai and English.|
|Preparation of End of Year Financial Statement that is audited, signed and certified by a licensed Public Accountant (CPA, Thailand) in Thai and English.|
|Preparation tax service for Yearly Corporate Income Tax return (PND.50 form)|
|Preparation of secretarial documents: Application form for Company's Information Submission (Sor.Bor.Chor.3) Form, Shareholders’ List (Bor.Oor.Jor.5) Form.|
|We will be registered as your Company chartered accountant in public records.|
|o file(submit) to related government departments such as: The Revenue Department (RD), DBD and MoC (E-filing).|
|Setting up AGM meetings for your company in accordance with the Civil and Commercial Code sector 1175 - whereby every Company must Send an official invitation to all company shareholders by registered mail and publish your company AGM in a local newspaper.|
This fee is only applicable if you already have someone else to handle your month to month financial Bookkeeping.
If you do not have any Thai standard monthly financial bookkeeping, we can assist you to put together your monthly financial bookkeeping and End of Year Account Closing, Audit and Submission.
For Only THB45,000
The official deadline for submission of Audited Accounts and Certified Financial Statement (account closing)
Within 150 days
From the end of each financial period
What happens if your company does not comply with the End of year Audited Accounts and Account Closing requirements?
Your company / the Director will be penalized by the DBD and Revenue Department for an amount upwards of THB20,000 depending on how late you are.
Penalized up to THB20,000
What happens if you did not submit an Audited Accounts and Account Closing for your company for several years?
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.
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.
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