Expenses Incurred by a Branch Office in Thailand
Today, we got this inquiry regarding the expenses of a branch office in Thailand.
For the expenses of our Thailand branch office, can it only be paid from our branch office account or the head office can pay on its behalf and then invoice the branch office later for reimbursement?
Expenses incurred by the branch office can be paid by anyone. The head office can pay expenses on behalf of the branch but please make sure the branch get all invoices and receipts from the vendors in its official name and address. Also, the branch must withhold taxes where applicable. Thus, then the branch has to pay back to the head office, you can just send a memo or an invoice.
Contact MSNA for your accounting and tax questions.
Cloud Accounting Service in Thailand by MSNA
Cloud accounting service in Bangkok Thailand is now offered by MSNA. In the fast-paced world of technology and business, a lot of processes are quickly changing. Many would find that there is a lot of work that should be done on a day to day basis for the business to survive and progress. Keeping up with this kind of issues could consume an ample amount of time and resources for the company.
One of the most vital component of a company that every business should focus to but many would often take no notice of, is accounting. Good management of the accounting books would be helpful for the company in using the available financial information for their decision making and to be able to see the company’s performance. But having to handle different accounting issues would be a lot of work. We believe that there are ways to work smarter – not harder or longer – to focus more on the business and earn more profit.
As our aim to serve our clients beyond their expectations, we always need to be on the loop of the most up-to-date processes. We now introduce our clients to cloud accounting software for our Accounting and Bookkeeping Services. With this kind of software our Accountants and the clients are able to access their books anytime online; data are saved in the “cloud”, no need for keeping a server on their offices cutting off some great amount of costs – costs of keeping professionals that would have to manage all IT issues, costs on buying those equipments and those unexpected costs when troubleshooting and updates are needed. All will be needed would be a stable internet connection and any device that can connect to the internet.
The cloud accounting software that we are handling is very simple that every client wouldn’t have to worry on using it; we can also provide training in such cases that this would be needed so any person from the company can be a user of the software to access the data anytime they needed it.
Because clients are able to have the access on the cloud accounting software in real time there is transparency on management of accounting books for them. The company’s financial information would be available for its users on time whenever they need it.
Our Accountants have undergone extensive training in using this cloud accounting software and can offer complete range of Accounting and Bookkeeping services from setting up the books, preparing tax and financial reports, maintaining accounts, and recording of all your accounting transactions online.
Contact email@example.com for cloud accounting service.
Due Diligence for Companies that are going public
Recently we were commissioned to assist on a due diligence investigation for one of our clients for the proposal of its headquarters to undertake initial public offering (IPO) and to list on the Securities Exchange overseas.
First, we discuss Initial Public Offering (IPO). IPO is done by a company who wants to have their stock be sold to the public through the Stocks or Securities Exchange. That is why it is usually referred to “going public”. Since this involves “selling” this could also mean raising cash for the company, hence increasing capital.
One of the requirements to be done to get into IPO is due diligence. Here we will talk only about legal due diligence. It is a comprehensive investigation of company’s legal requirements, checking of company’s compliance to relevant authorities, and a thorough understanding of all the company’s obligations. This kind of practice greatly requires examination of legal matters.
For the legal due diligence that we had with one of our clients for the purpose of IPO, we performed the following actions:
- Confirm the good standing of the Company (i.e. that the Company is duly incorporated in Thailand and registered accordingly and that its statutory records and filings with the relevant authorities are up to date and accurate);
- Confirm current ownership structure of the Company (i.e. details of all issued shares of the Company; and details of ownership (legal and beneficial) and control of the Company);
- Confirm details of all directors; secretaries and officers of the Company;
- Review all statutory records and registers of the Company, filings and the minute books available in the data room (access to be provided) and through publicly available searches;
- Verify the details of all existing encumbrances of the Company;
- Perform litigation and winding-up searches on the Company;
- Confirm that the Company has all governmental, statutory or other permits, authorities or licenses required in order for it to satisfy its obligations under material contracts to which it is a party;
- Verify that all fees due in relation to all Licenses have been paid and all conditions are complied with;
- Confirm full details of any current breach of any License (as per publicly available information);
- Confirm that the Proposed Restructure / Proposed Listing will not result in a breach of any License or an entitlement for the issuer to revoke, qualify or vary any License; and;
- Review all material contracts in respect of which the Company is a party and provide summary (including details of change of control triggered by the IPO and Proposed Restructure).
IPO is a way to potential growth for any company. But this move would never be easy for anyone; one should be eligible by all means since it involves the public and not all companies would qualify to have their stocks be listed publicly. The company should consider on whom they can rely for the process in undertaking IPO for it to be successful. At MSNA Group, we have our Thai Accountants and Thai Lawyers that has good background on financial and legal aspects of businesses in Thailand to serve in any way possible in attaining our client’s targets. And as our commitment, we will be with them every step of their way – from start-up to growth.
Moreover, due diligence investigation can be carried out for different purposes, the most common purpose for this service is when a potential buyer would like to evaluate a business or company for merger and/or acquisition and another would be, as we’ve mentioned earlier, when a company would like to have their shares be available and listed publicly.
Contact MSNA for Due Diligence Services.