Chart, companies : creation and dissolution, per month and quarter

Update of my charts about creation and dissolution of companies in Thailand (Source Department of Business Development), with datas for april and may.

Companies = Limited Company + Limited Partnership + Ordinary Partnership (Public Limited companies are excluded)

Dissolution = Dissolved Defunct and Bankrupt

Disclaimer : figures for dissolution are often revised (because the judicial process can be very long).

And another view, per quarter.

2 Responses to “Chart, companies : creation and dissolution, per month and quarter”

  1. 1 chinesethai 8 July 2008 at 6:01 am

    I think it is very hard to determine the state of economy from the creation and dissolution figures since company registration is usually simple and anybody can set up a company. Many companies that are set up from the beginning for tax purposes have few transactions and submit financial statements just for compliance with the law. Many dissolved companies can be re-created in different names as new companies under the same owners. In the past, my family registered 3 companies for tax reduction and accounting purposes. Then we scrapped 2 when there were changes to Thai tax laws.

    GDP, inflation, household debt, personal debt, number of deposit accounts over XXX baht, credit growth, credit outstanding… rather precisely tell the story.

  2. 2 ThaiCrisis 12 July 2008 at 9:58 pm

    This is why I gave the “disclaimer” about dissolutions.

    I follow the figures every month, and I can tell you that the DBD revises… the datas all the time, and sometimes several months behind.

    Due to the long process involved in dissolution, it’s understable.

    As for the value of this indicator, yes someone who creates a company is not necessarily an entrepreneur who will create added value in the economy.

    However, it gives I believe a trend.

    Let’s take your “tax optimization” scheme. Do you seriously believe that you would set up such companies during… an economic downturn ?

    I mean when businesses have to pay taxes it’s a good sign as far as the state of the economy is concerned ! 😉

    So overall, this indicator has probably some flaws (and time lags as well) but it gives some usefull infos about trends.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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