If your Thai company was established primarily to hold residential property (land and/or buildings) 🏡, you must ensure it remains fully compliant with the Department of Business Development (DBD) 🏛️ and the Revenue Department (RD) 💰.
This is not a box-ticking exercise. Even if your company isn’t “trading” in the traditional sense, the authorities classify it as an active company once it holds assets, earns rental income, or engages in business-like transactions. That means it must comply with the same obligations as any operating business.
Why does this matter?
- If you ever plan to sell shares or transfer ownership, improper records can reduce the value of your company and complicate the process.
- Compliance gaps may cause unnecessary complications with the authorities, slowing things down.
- Ultimately, non-compliance can block a clean transfer altogether, creating avoidable hurdles for your future plans.
Your Annual Compliance Checklist📋
1️⃣ Proper Financial Statements
- Land and buildings must be clearly recorded on the balance sheet. 🧾
- Depreciation (commonly ~5% per year for buildings) must be recorded annually.📉
- Revenue and expenses must be recorded.💼
- Missing this step can invalidate financial statements and undermine future transactions.⚠️
2️⃣ Maintain a Company Bank Account
- All rental income and related expenses must flow through a company-named bank account.💳
- This ensures an auditable paper trail and protects your expense deductions.🧾✅
3️⃣ Demonstrate Business Activity
Rental income from the company’s property must be recognized in the accounts. 🏠💵
Keep at least a modest, consistent profit at the bottom line — proof that the company is operational, not dormant.
A property-holding company has legal and tax obligations just like any other business 🧑⚖️📑.
✅ Staying compliant now avoids penalties later — and ensures that when it’s time to sell or transfer, the process is clean, straightforward, and risk-free 🛡️.
✅ Need a quick check?
Would you like us to help review your company’s financial statements to ensure everything is in order before the 2026 deadline?
