Bangkok: The government is set to accelerate the deregistration process for "abandoned companies" in 2025, with the aim of enhancing transparency in the legal entity database and closing avenues for public deception. According to Thai News Agency, Ms. Sasikarn Wattanachan, deputy government spokesperson, announced that the Ministry of Commerce is planning to survey juristic persons eligible for deregistration next year. A company or partnership may be deregistered as abandoned if it has ceased trading, failed to submit financial statements to the Department of Business Development, or has not completed necessary liquidation procedures. This initiative aims to correct inaccuracies in the juristic person database and prevent potential public deception regarding the true status of businesses. Once the registrar orders the removal of a company or partnership from the register, it ceases to exist as a legal entity. However, the financial liabilities of its members, including managing partners, directors, and sha reholders, remain enforceable. Interested parties can petition the court to reinstate an abandoned entity within ten years of deregistration. Over the past three years, 89,856 juristic persons have been removed from the registry and marked as inactive, with 27,915 deregistered in 2022, 29,006 in 2023, and 32,935 in 2024. As of late February 2025, 928,292 juristic persons remain operational. The government's efforts are focused on fostering confidence in the registry system and curbing the misuse of fictitious company names. Ms. Sasikarn emphasized the government's dedication to safeguarding public interests and building a trustworthy legal entity system. The deregistration initiative is part of broader efforts to enhance transparency and stability in Thailand's economic framework. A precise and updated legal entity database is expected to mitigate fraud risks, create a secure business climate, and support future investments.
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