Cambodia
Business & investment in Cambodia:
- Invest in Real Estate Cambodia
- Real estate agency Cambodia
- Invest stock exchange Cambodia
- Open a Company in Cambodia
What type of company will I, as a foreigner, need to register?
Registering a company in Cambodia is not the same as it is in your local country. There are a few extra things to look for. Firstly, you’ll need to get acquainted with an investor Visa, especially if you are looking to hire local residents. As law and rules in Cambodia is not easy to understand, we highly recommend you to meet up with some law firm when you move to Cambodia or ask for recommendations from expatriates living in Cambodia to evaluate the different options you are having.
What are the fees involved in starting a business?
You are required to have a bank account with a minimum balance of $1300. Furthermore, it is mandatory to register your company on the Ministry of Commerce website, where you are required to pay a registration fee of about $450. You will have other fees about the registration, obtaining work permit if you want to involve foreigners in the business and get all certificate to be able to sell for instance goods in Cambodia.
What company is most likely to prosper in a country like Cambodia?
The food sector, restaurants in particular, are one of the most popular tourist attractions, and is quite popular amongst business entrepreneurs. This may be so, but due to the growing economy in Cambodia, there are numerous business sectors that are sure to prosper.
What are the requirements that are needed in the registering of a company in Cambodia?
We would definitely recommend you work closely with an accountant, or a law firm recommended by an expatriate living in Cambodia, so you don’t need to worry too much and can rely on them about the paperwork. In general, they will ask you:
- A memorandum containing the status of your new business.
- An identity document.
- A proof of domicile for the company (which may be a rental lease contract, or a gas or electricity bill)
- A medical certificate proving a good state of health.
- An exhaustive list of foreign and local staff
- Justification demonstrating the absence of a criminal record (from the country of origin)
The Funding: Are Banks Helping Expats for Business?
It is possible to make a bank loan to create a company in Cambodia for Expatriates or the local population. Be careful about the different loan conditions, interest rates and various other possible fees before signing, though.
However, there are also investors who inject money into promising start-ups. It takes a lot of resources, and there will be a lot of unforeseen events, but it will never be too much to have an investor who believes in his project and who is ready to support you at every step.
Paperwork and process to open a company in Cambodia
This is not the most difficult part of the business creation process in Cambodia. At this level, the project has had time to simmer, ideas have been put in place and we are moving on to implementation. The documents to be prepared are a valid visa, a work permit, a bank account in a local bank with a minimum balance of 1300 dollars.
It is mandatory to register the new company on the Ministry of Commerce website and pay the registration fee (approximately $450). When registering online, the following documents must be completed and sent in to complete the application:
- A memorandum containing the status of your new business
- An identity document
- A proof of domicile for the company (which may be a rental lease contract, or a gas or electricity bill)
- A medical certificate proving a good state of health
- An exhaustive list of foreign and local staff
- Justification demonstrating the absence of a criminal record (from the country of origin)
Once this registration is effective, you receive the company license, status and certificate of incorporation.
The next step is to file a declaration of company creation with the General Department of Taxation, then with the Ministry of Labour and Vocational Training, which will issue the work permit for all foreign workers.
In all your efforts, do not hesitate to collaborate with the local population, who are more familiar with the administrative system on site. All those who have tried this adventure say that starting a business in Cambodia is not without obstacles but accessible to everyone. The procedures are clearly easier than in most of the western countries. Vigilance is required with regard to the legal framework for business creation in Cambodia. Do not hesitate to use a local consultant for this. When setting up a company you may want to consider these factors:
1. Business Factors
Business factors such as:
- The industry and type of business
- Nationality of the headquarters/individual(s) and
- Presence of existing trade agreements or relationships
- Location
Location will be another factor. Separate cities and regions may have different rules, costs and availability. It is always recommended to seek advice from relevant professionals, such as business or legal advisors, accountants and others depending on your needs.
- Regional Language
Regional language may be an influence. Although Khmer is the official language, different locations in Cambodia use varying dialects, and some minority languages are also used, meaning some terminology may be different in various regions. Some Khmer businessmen will speak English, but sometimes not to the proficiency required to conduct business setting up a company in Cambodia.
