Set up Business in Cambodia
Generally, there are no restictions on the setting up on business in Cambodia. However, many businesses require a license or permit to operate, including areas such as Banking and Finance, Industry factory, Institutions, Real Estate Agencies, Tour agencies, etc.
Commonly used Business Entities
A new entity is registered with the Cambodian Ministry of Commerce (MoC). Approval for registration usually take approximately ten working days upon Submission of all required document. In general, businesses operate in Cambodia via the following vehicles:
► A Company incorporated in Cambodia
► A branch of a company incorporated outsite Cambodia
► A respresentative office of a company incorported outside Cambodia
Online Business Registration with the MoC
On 4th January 2016, the MoC launched tis Online Business Registration Service. The new system is intended to allow companies, partnership, and sole proprietors to apply for business registration, keep their official information up to date, and complete the filings,
without haveing to physically attend the MoC. Furthermore, payment of registration fees can be made via the electronic banking system in accordance with the MoC's Joint Prakas. A payment reciept will be issued by an automated system as evidence of payment.
Main Legal formalities for the New Establishment and Registration
The minimum registered capital is 4,000.000 Riels (Approximately USD 1,000). Generally, there is no restriction on foreign ownership(except for land holding). The name of the company must first be cleared with the MoC. A standart memorandum and article of association will have to be prepared for the company and lodged with the MoC, together with the prescibed information for incorporated.
Certain documents and information of the holding company and the Cambodian branch are require to be provided to the MoC for branch registration. The name of the branch shall be the name of its principle. The Branch office can carry out trading activities (sales and purchase of goods and services).
3. Representative Office
A Representative Office is prohibited from undertaking profit making activities including the buying or selling of goods, or construction. The name of the Representative Office shall be the name of its principle.
Requirements for Foreign Investors
For foreign company, the full name, address, nationality of the foreign investor and the number of shares held in the company are requied to be discloses to the MoC. For a Branch, the place of registration of the foreign company, details of its structure and other information in the prescribed document are required to be disclose to the MoC. If the company or branch needs to apply for a particular license to carry out its business operational information on the foreign investor may have to be provided to the relevant gonernment authority.
Currency / Monetary Restrictions
Currency, Cambodia doesn't have any restrictions on funds transfer. The foreign exchange law of 1997 provides for foreign currencies to be freely purchases via the banking system. In particular, the law states that there should be no restrictions on foreign exchange operation. However, these operation can only be performed through an authorized financial institution.
Qualified Investment Project ( QIP )
Investors may apply for a QIP status by registering their projects with the Council for Development of Cambodia ( CDC ). However, a project with investment capital less than USD 2,000,000 shall be registered with the provincial / municipal investment sub-committee. A QIP will be entitled to certain incentives. A tax holiday period may be available up to maximum of 9 years.