How to Setup a Company in Cambodia Complete Guide

Starting a business in Cambodia has become increasingly popular due to the country’s growing economy, business-friendly environment, and strategic location in Southeast Asia. Whether you are a local entrepreneur or a foreign investor, the process of setting up a company in Cambodia is relatively straightforward, thanks to the government’s online registration system. In this guide, we’ll walk you through everything you need to know about registering and setting up your company in Cambodia.

Why Setup a Company in Cambodia?

Cambodia offers several advantages for entrepreneurs looking to establish a business:

Low Operating Costs: Compared to neighboring countries, Cambodia offers affordable office space, labor, and operational costs.
Business-Friendly Environment: The Cambodian government has simplified procedures for business registration, making it easier for foreign investors to operate.
Strategic Location: Cambodia is strategically located in Southeast Asia, offering easy access to regional markets such as Thailand, Vietnam, and Laos.
Growing Economy: Cambodia has one of the fastest-growing economies in the region, especially in sectors like tourism, agriculture, and manufacturing.

Business-Services-in-cambodia

Steps to Setup a Company in Cambodia

Setting up a company in Cambodia involves several steps, but it’s a simple process with clear guidelines. Follow these steps to get started:

1. Choose Your Business Structure

Before you begin the registration process, decide on the type of company you want to set up. The most common business structures in Cambodia are:

Private Limited Company (LLC): This is the most popular option for small and medium-sized businesses. It offers limited liability protection to its shareholders.
Sole Proprietorship: A business owned and operated by a single individual.
Branch Office: A foreign business can set up a branch office in Cambodia to conduct commercial activities.
Representative Office: This type of office is for non-commercial activities like promoting a business or market research.

2. Register Your Business with the Ministry of Commerce (MoC)

Once you’ve chosen your business structure, the next step is to register your company with the Ministry of Commerce (MoC). You can do this online via the Business Registration System (BRS), which is user-friendly and efficient.

Required Documents:

ឈ្មោះក្រុមហ៊ុន Name of Company
អត្តសញ្ណាប័ណ្ឌសញ្ជាតិខ្មែរ ឬលិខិតឆ្លងដែនម្ចាស់ភាគហ៊ុន (មានហេត្ថលេខាខាងក្រោម) Passport/ID Card Shareholder (Signature under) soft file
លេខទូរស័ព្ទ ម្ចាស់ភាគហ៊ុន Phone number of all shareholders
លេខទូរស័ព្ទជនបរទេស របស់ម្ចាស់ភាគហ៊ុនបរទេស Oversea Phone Number & Address (foreign country)
កិច្ចសន្យាជួលការិយាល័យ ឬ ប្លង់ផ្ទះដែលជាកម្មសិទ្ធផ្ទាល់របស់ ម្ចាស់ភាគហ៊ុន Office Lease agreement or Hard Title of Landlord
រូបថត 4*6 ម្ចាស់ភាគហ៊ុន Photo of Shareholder (softcopy)
រូបថតការិយាល័យ Photo of Office
ផែនទីគំនូសតាង Google map of office

Once registered, you’ll receive your Certificate of Incorporation and Business Registration Number.

3. Obtain a Tax Identification Number (TIN)

After registering your company with the MoC, you must register with the General Department of Taxation (GDT) to get a Tax Identification Number (TIN). This is essential for tax purposes, including VAT registration if your business exceeds the required threshold.

Required for: All businesses, including foreign-owned companies, to comply with tax laws in Cambodia.

4. Open a Business Bank Account

To operate legally, your company must have a business bank account in Cambodia. Most Cambodian banks offer services tailored to foreign businesses. Make sure to shop around to find a bank that meets your needs.

5. Obtain Additional Licenses and Permits

Depending on the nature of your business, you may need specific licenses or permits. For instance, businesses in the food and beverage industry, hotels, or tourism-related sectors may need additional approvals from regulatory bodies.

6. Hire Employees and Comply with Labor Laws

If you plan to hire staff, you must comply with Cambodia’s labor laws. This includes drafting employment contracts, providing social security benefits, and ensuring employee rights are respected.

Work Permits for Foreign Employees: If you hire foreign nationals, they will need a work permit and residence card.

7. Consider Using an Agent for Registration (ABSC)

Although the registration process can be done online, many foreign entrepreneurs prefer to use an ABSC – Angkor Business Service Consultant (Cambodia) Co., Ltd to assist with the process. An agent can help with:

Preparing and submitting documentation
Ensuring compliance with local regulations
Setting up your business bank account
Handling licensing and permit applications

8. Apply for Social Security Registration

To comply with Cambodian law, companies must register with the National Social Security Fund (NSSF) to cover social security, health insurance, and retirement benefits for their employees.

Additional Considerations for Foreign Entrepreneurs

While setting up a company in Cambodia is relatively simple, foreign investors should be aware of certain restrictions and regulations:

Foreign Ownership: In some sectors, foreign ownership may be restricted or limited to a certain percentage (typically 49% foreign ownership in a company, with the remaining 51% owned by Cambodian nationals).
Land Ownership: Foreigners cannot own land in Cambodia, but they can lease land for up to 50 years, with an option to extend.

It’s always a good idea to consult with a local attorney or business consultant to ensure you’re in full compliance with Cambodian laws.

Why Choose Cambodia for Your Business?

Cambodia offers many benefits to entrepreneurs and investors, making it an attractive destination for setting up a company. With its growing economy, low operating costs, and simple business registration process, Cambodia is an ideal place to start or expand your business.

Conclusion

Setting up a company in Cambodia is a clear and streamlined process that can be completed online. By following the necessary steps—choosing your business structure, registering with the Ministry of Commerce, obtaining a tax ID, and complying with local labor laws—you can quickly get your business up and running. Whether you are a local entrepreneur or a foreign investor, Cambodia offers a wealth of opportunities for businesses to grow and succeed in a rapidly developing market.