Closing a company in Cambodia can be much longer and expensive than opening one, but needs to be done properly nonetheless. The Council for the Development of Cambodia recently warned companies to formally close down according to the law, if they’re no longer doing business.

Rather than declaring bankruptcy or dissolving, owners of failed companies too often simply take what they can and walk away. This leaves behind the legal entity, which still must file taxes and make the annual declaration to the Ministry of Commerce. The ghost company can also be sued, even though it probably won’t have any assets remaining. The real danger is that directors and shareholders be held personally liable for the unpaid taxes, and fines, for the ghost company.
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