BANGKOK, Thailand – A nationwide review of inactive legal entities is underway to update Thailand’s corporate registry and prevent fraudulent activities.
The Ministry of Commerce is preparing to conduct a nationwide assessment of dormant legal entities in 2025, focusing on the de-registration of inactive partnerships and companies. This process involves the registrar officially striking off legal entities from the business registry when they have ceased trading, failed to file financial statements with the Department of Business Development, or neglected to complete the liquidation process after filing for dissolution. These inactive registrations distort the accuracy of the national database, mislead the public, and pose risks of fraudulent use.
Under the law, the registrar is empowered to remove partnerships or companies from the register when they are found to be inactive or no longer operational. Once removed, the legal entity loses its corporate status immediately. However, the liabilities of managing partners, shareholders, directors, and managers remain intact and enforceable as though the legal entity were still active. Should any stakeholder wish to reinstate a deregistered entity, they may petition the court within ten years of removal to restore the company to the registry.
Over the past three years, about 89,800 legal entities have been deregistered due to inactivity. These are 27,900 in 2022, 29,000 in 2023, and 32,900 in 2024. As of the end of February this year, Thailand has nearly 928,300 active registered legal entities.
This initiative is part of the government’s ongoing efforts to strengthen trust in the business registry system and prevent misuse of defunct company names for deceptive purposes. By cleansing the database and maintaining only up-to-date information, the government aims to improve transparency, reduce fraud risks, and support a secure and credible business environment that fosters future investment. (NNT)
