Dissolution of Company/Business in Cambodia
If you decide to dissolution a business in Cambodia, there are a few things you had better keep in mind.
1. You must end your Business
- If you don’t declare bankruptcy or the business is never formally dissolved, you will leave behind a legal entity, a “ghost company” that can be sued even though there might not be any remaining assets.
2. Officially Dissolution the Business
- There are two steps you must complete. First, send a letter informing the Tax Department that the business is planning to close. Within 1 – 2 months, an auditor is sent to the company and this is when any pending tax issues will be addressed. Once the Tax Department has approved the first step by issuing a certificate, the company must formally close the business down at the Ministry of Commerce, and then they will receive a Certificate of Closure.
- As with registering a business, the process for dissolving a company can now also be done online. For more information, click here.
3. Few important things while Dissolution the Business
- A company can face court supervision of the liquidation if it does not properly satisfy all its obligations.
- Those include paying employee salaries, outstanding debts and due taxes.
- The legal entity continues to exist until the date shown on a certificate of dissolution, issued by the MoC.
- In addition, an official audit by the Department of Taxation is often necessary.
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