Closing a Thai Limited Company
The closing of a Thai limited company is a very involved procedure that requires assistance from both a lawyer and an accountant. Furthermore, if a company has accumulated much debt during the course of its business operations, it may take a while before the company can settle its affairs and come to a close. Basically, there are two steps to closing a Thai limited company, which are dissolution and liquidation. The dissolution of a company refers to the official termination of a company’s legal existence, except for the purposes of liquidating its assets. The liquidation of a company refers to the payment of its debts, distribution of its assets, and the settlement of its affairs. In this article, we will begin by addressing the bases for dissolving a Thai limited company.
The bases for dissolving a Thai limited company are generally by operation of law, court order, or a special resolution. A Thai limited company is considered dissolved by operation of law if any number of conditions are met, such as the company’s regulations mandating the dissolution of the company, the company being formed for a limited time period and that period now is expired, the company being formed for a specific project or task and that project or task now is completed, or the company becoming bankrupt.
A company may also be dissolved by a court order. A court may order that a company be dissolved if, for example, the current number of shareholders is less than three, the company does not commence it business within a year of registration, if it suspends its business for a whole year, or if the company can only be carried on at a loss without any prospect of recovery.
However, it is also possible for a company to close if its owners decide that they no longer want to continue carrying on the business. In this case, a general meeting of the shareholders must be called and a special resolution to dissolve the company must be passed. In the next article, we will address the dissolution of a company by special resolution and the procedure for registering the dissolution of a company.
If you have questions related to closing a Thai Limited Company, please feel free to contact us.
Category: Business in Thailand, Company Law
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Siam Legal is an international law firm with experienced lawyers, attorneys, and solicitors both in Thailand law and international law. This Thailand law firm offers comprehensive legal services in Thailand to both local and foreign clients for Litigation such as civil & criminal cases, labor disputes, commercial cases, divorce, adoption, extradition, fraud, and drug cases. Other legal expertise of the law firm varied in cases involving corporate law such as company registration & Thailand BOI, family law, property law, and private investigation.
