The Consequences of Non-Compliance

Having your own business is a dream come true for most people. It is our dream to finally have a company to rule, manage and grow. Many aspiring entrepreneurs make owning their own business and successfully running it their ultimate goal as a professional.

When you have your own business, you should not just think of the privilege it brings but you should focus more on the responsibilities that comes with it. Running the business itself is a big responsibility already to take on. But the first thing you need to really take a look into concerning your business is its legality. Here in Thailand, this aspect is essential and one you should never miss. Company registration in Thailand is rooted in policies and rules just like with others.

For all businesses in this country, the one thing you need to ensure is the legality of your operations. It does not matter how good your products and services are if you are not even registered. Once you are found out, there are consequences that this non-compliance is about to bring in your doorstep.

  • Penalty. Without company registration in Thailand means that all of your business operation do not have any right to operate. With that, the state can give you penalties that is appropriate for the law you have crossed.  For this one, it is more on monetary penalties.
  • Forced Closing of Your Business. If the state deemed that your business should be closed due to non-compliance, they could force it to you. Company registration in Thailand is a mark that your business is legal along with all its operations. If you did not bother to register your business, how do you think it would look like? Most of the unregistered businesses are those which have illegal business going on. Moreover, you do not have the right to operate in the country if you did not let the state know of your business in the first place.
  • Injunction. The worst thing you could face would be being put to jail. The case of people being put to jail in non-compliance with company registration may be a bit rare and it does not go that far too often but it does not mean that it will be the same with your case. Company registration, in Thailand or anywhere, is an essential part of your business. Operating without it means that you are doing something illegal in some sense. And anything illegal is punishable by law. With that, the chances of being locked in jail is not that far with your non-compliance with this simple registration especially when you and your company is sued. You will not have any valid certificate of authority to present at all. You will be personally liable for that case. In addition to that, you cannot bring any lawsuit as you are barred to do so.

When you did not comply with the company registration in Thailand and its processes, the state has the right to give punishments to you.   Registering your business may be a task you would not want to submit yourself into. But always remember that going through this task is a lot better than having to face the consequences that comes with non-compliance to them or having to see all of those investments and dreams you have be put all to waste simply because you did not bother to register your business first.

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