Nine per cent slump in new registrations

In the first quarter, the number of new business registrations fell 22 per cent year on year after stricter controls over the registration of lottery distributors, the prolonged domestic political impasse and the sluggish economy.

Caretaker Deputy Commerce Minister Nuttawut Saikuar said new business registrations nationwide last month numbered 5,248, down by 505 or 9 per cent from 5,753 in March 2013, but up by 394 or 8 per cent over 4,854 in February this year. 

Meanwhile, there were 830 business closures nationwide, down by one, or 0.1 per cent, from 831 in March 2013, and by 186, or 29 per cent, from 1,016 in February 2014. 

New business registrations nationwide in the first quarter stood at 15,419, down by 22 per cent from the same period last year. The decline in new business registrations was attributed to lower registration of lottery distributors, the ongoing domestic political stalemate, and the expectation of growth in this year’s gross domestic product at only 2.7 per cent, compared with 2.9 per cent in 2013. 

The number of new business registrations for all of 2014 is likely to be close to or slightly higher than last year’s, the Commerce Ministry projected.

Risk factors that must be monitored closely include exports, which should improve in line with the recovering global economy, state spending on approved projects, the formation of the next cabinet and its policies, continuation of various pending projects, expanding trends of private-sector investments, and the domestic political situation, which will have a bearing on the economy and new business registrations.

As of March 31, there were 561,245 business entities nationwide with a combined registered capital of Bt10.77 trillion, comprising 389,342 limited companies, 1,046 public limited companies and 170,857 limited partnership/common juristic person partnerships.