The Accounting and Auditing Regulator (“ACAR”), operating under Cambodia’s Non-Bank Financial Services Authority (“FSA”), has issued Instruction No. 0.11/26 dated 10 March 2026, establishing formal procedures for enterprises and non-profit organizations that cease business or operational activities. This directive is intended to ensure compliance with the Accounting and Auditing Law and to address prior instances of incomplete notifications or misunderstandings of statutory obligations.

Key Obligations

Entities ceasing business operations must continue to meet the following obligations throughout and following the cessation process:

– Maintain proper accounting records
– Prepare financial statements in accordance with applicable accounting standards
– Submit to independent audits where required
– File all required reports with ACAR within prescribed deadlines

Non-compliance with these obligations may result in administrative sanctions, highlighting the importance of these clarified guidelines.

Submission Procedures

Entities must submit a formal administrative letter to ACAR at least 60 days prior to the annual financial statement submission deadline. The submission must be accompanied by the payment of the applicable service fee, as set out in ACAR’s Public Service Announcement.

Required attachments include:

– A copy of the Financial Reporting Identification Number (FIN) certificate
– Receipts confirming payment submitted with the filing of prior years’ financial reports
– A copy of any outstanding financial statements (if any)
– Copies of cessation of business notifications to relevant authorities, where applicable

Completion and Consequences of Non-Compliance

All delinquent financial statements from prior periods must be filed before the cessation approval can be finalized. Failure to notify ACAR within the stipulated timeframe will result in the entity being deemed operationally active, meaning continuing legal and reporting obligations will remain in effect.

Implementation Considerations

Enterprises considering the closure of their Cambodian operations should plan their cessation timeline carefully to accommodate the 60-day advance notice requirement, and ensure that all prior-period financial statements are properly filed and applicable fees paid before initiating the closure process. Early engagement with legal and accounting advisors is recommended to facilitate a smooth and compliant exit process.

For Assistance

Enterprises and non-profit organizations planning to cease operations in Cambodia, or seeking clarification on the applicable notification procedures, should consult with their legal, tax, or accounting advisors to ensure full compliance with Instruction No. 0.11/26 and related regulatory requirements.