Closing a Business in Thailand

Hello, my name is Robert. I am a Legal Manager at Siam Legal International. In this video, I will discuss the proper method of closing a business operation in Thailand.

It is a great challenge for a foreigner to open and operate a business in Thailand.

Thailand has arcane bureaucratic rules that create hurdles to starting a company.

Thai is a difficult language to learn. It is difficult to review contracts or negotiate with suppliers and clients in a foreign language.

The differences in culture can generate conflicts between an employer and employees.

Sometimes all of these issues combined with business competition makes it difficult to keep a business open.

The decision to close down a business is a difficult one. It must be done properly to reduce the risk of future lawsuits against the business owner or managers.

What needs to be done?

  1. File for dissolution of the company with Department of Business Development.
  2. If the company is solvent, the company must liquidate its assets.
  3. If the company is insolvent, the shareholders have to put additional capital into the business or the liquidator can start bankruptcy proceedings.
  4. The company must file its tax return and pay all taxes due. A bankruptcy will not discharge a tax debt or Employee salaries.
  5. Employees have to be paid their salary and severance.
  6. If there are foreign workers, work permits have to be returned to the Ministry of Labor within 7 days.
  7. Suppliers and customers need to be legally notified of the termination of business. Arrangements should be made to terminate any existing contracts.
  8. Banks and financial accounts should be closed down.
  9. Landlord should be sent notice of the end of the business operations and the termination of the lease.
  10. Any surplus after taxes and debts are paid should be distributed to the shareholders.

Closing down a business is a sad time but it is necessary to ensure that the business is closed down properly.

If you have questions or need assistance with the process, please contact Siam-Legal International for answers.

See also the registering of company’s dissolution and registering the completion of liquidation here.
 

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