For any business owner, especially foreign investors, forming and administering a company in Thailand can be a daunting task. After you've completed all of the steps necessary to start your business, you'll still need to go through a slew of tasks and paperwork to keep it running smoothly. They can be time-consuming, demanding, and even not easy to track. This requires meticulous attention from the person in charge to avoid penalties and further complications from the relevant authorities. A popular and cost-effective solution for foreign business owners is to hire a trustworthy agency in Thailand to take care of all of the work.
Viettonkin Audit and Compliance Services
After 12 years of working experience in the field of investment consulting in the ASEAN region, Viettonkin understands the desires and difficulties that business owners have when starting to invest in a new foreign market. With a team of experts in the fields of investment, business and law in Thailand, we ensure to bring reputable, quality, and confidential services and solutions to our clients. All for the success of your business.
Below are some of the things that business owners in Thailand, especially FDI enterprise owners, need to know about post-incorporation requirements, as well as the solutions that Viettonkin has to offer.
Financial Statement Preparation
All Thai companies, partnerships, joint ventures, and foreign company branches are required to prepare and submit financial statements for their assigned accounting period to the Ministry of Commerce.
The tax year follows the financial year, which ends on December 31st. A company, however, can choose its own accounting period as long as it does not exceed 12 months.
Foreign companies must submit their financial statements no later than 150 days after the end of the fiscal year. Once an accounting period is chosen, it cannot be changed unless there is written approval obtained from the Revenue Department. Also, be sure to refer to the Thai accounting standards (TAS) and all prevailing regulations for ensuring compliance in this regard.
Corporate Tax Returns and Tax Returns
While filing corporate income tax in Thailand is not difficult, businesses should be wary of situations that could result in fines, surcharges, or Revenue Department investigations. To avoid any complications, Viettonkin recommends using an experienced Thai tax professional, especially if your business has its tax department located outside of Thailand.
A limited company carrying on business in Thailand must file a half-year and an annual corporate income tax return. The tax paid at the half-year is a prepayment calculated on the forecasted net profit for the year and is credited against the full-year tax liability. The latest the half-year return can be filed is two months from the last day of the first six months of the company’s accounting period, and the annual return must be filed within 150 days from the last day of the accounting period.
DBD e-Filing
The Ministry of Commerce's Department of Business Development (DBD) is in charge of registering and administering businesses and partnerships in Thailand, among other things. This means the DBD has the authority to control the registration of businesses and to affirm business documents. DBD filing is one important statutory task that must be completed after the submission of the financial statement and annual tax returns.
In 2015, the DBD implemented the “DBD e-filing” system, which is used to file audited financial statements online. All juristic people with an accounting duty should acquire their DBD e-filing system username and password as they will replace the signatures that were previously required to be affixed on the annual audited financial statement. This has provided agencies like Viettonkin the necessary tool to handle our clients’ DBD filing online along with other annual tasks.
Annual General Meeting (AGM)
Annual general meetings must be held in accordance with the Thai Civil and Commercial Code.
Within four months of the fiscal year's end, the board of directors must issue a letter calling for the AGM to be held, at least 7 days prior to the meeting date (unless otherwise stipulated in the AoA of the company). The notice letter must be published in a local newspaper and sent by registered mail or hand (acknowledged by signature) to each shareholder whose name appears on the shareholder register. The AGM must be held at least once a year. However, keep in mind that the AGM meeting must be held prior to the submission of the financial statement and annual tax returns and DBD filing in such a way that it shall meet the statutory requirements.
The following topics should be covered at the AGM:
- Clarify the AGM minutes;
- Approve the director’s report on the company’s business activities;
- Acknowledge the company’s operational results from the previous year;
- Select new directors to replace those that have been terminated;
- Appoint an auditor and determination of audit fees; and
- Consider dividends.
Acquire the Best Audit and Compliance Services in Thailand with Viettonkin
Viettonkin Thailand offers a variety of post-incorporation services and other compliance ones for FDI companies in both Thai and English languages. We guarantee the best services in the market that will not only save you time and resources, but also improve your business’s performance and image to relevant authorities and business partners. Contact us now for more information.
