Annual Audits in Thailand: Audit Requirements for Dormant Companies in Thailand

Many business owners assume that if a company has no transactions, it has no compliance obligations. In Thailand, this is not the case. Even inactive or non-trading entities must follow strict regulatory rules. Understanding the audit requirements for dormant companies in Thailand is essential to avoid penalties, delays, and future operational issues.

This article explains what qualifies as a dormant company, why audits are still required, and how the audit process works when there is no financial activity.

Why Audit Requirements for Dormant Companies in Thailand Still Apply

A dormant company in Thailand is generally defined as a registered company that has had no income, expenses, or financial transactions during the accounting year. Despite the lack of activity, Thai law does not exempt dormant companies from statutory audit and filing obligations.

The audit requirements for dormant companies in Thailand are enforced by the Department of Business Development (DBD) and the Revenue Department. These requirements exist to ensure transparency, prevent misuse of inactive entities, and maintain accurate corporate records.

Dormant companies are still required to:

• Prepare annual financial statements

• Appoint a licensed auditor to audit those statements

• Hold an Annual General Meeting (AGM)

• Submit audited financial statements to the DBD

• File a corporate income tax return, even if no tax is payable

Failing to meet these requirements may result in fines and administrative penalties.

How the Audit Process Works for Dormant Companies in Thailand

Although audits for dormant companies are generally simpler than audits for active businesses, the process must still follow professional and legal standards.

Preparation of Financial Statements

Under the audit requirements for dormant companies in Thailand, companies must prepare:

• A balance sheet showing no assets or liabilities (or unchanged balances)

• A profit and loss statement showing zero income and expenses

• Notes to the financial statements confirming dormant status

These documents must comply with Thai Financial Reporting Standards (TFRS).

Audit by a Licensed Auditor

A certified public accountant (CPA) will review the company’s records to confirm that:

• No transactions occurred during the accounting period

• The company’s books are complete and properly maintained

• The dormant status is accurately disclosed

Once verified, the auditor issues an audit report confirming that the financial statements fairly present the company’s position.

Filing and Submission

To fully comply with the audit requirements for dormant companies in Thailand, the audited financial statements must be:

• Approved by shareholders at the AGM

• Submitted to the DBD within one month of the AGM

• Filed with the Revenue Department along with the annual corporate income tax return (PND 50), even if the figures are zero

For Full Audit Services Visit Here

FAQs: Audit Requirements for Dormant Companies