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Can Foreigners Own a Business in Cambodia

Can Foreigners Own a Business in Cambodia?

Cambodia is an increasingly popular destination for foreign investors seeking opportunities in Southeast Asia. With its growing economy, strategic location, and business-friendly environment, many entrepreneurs are considering Cambodia for their next business venture. One of the most common questions they ask is: Can foreigners own a business in Cambodia?

Can Foreigners Own a Business in Cambodia?

Yes, foreigners can fully own a business in Cambodia. The government has made it simple for foreign investors to establish businesses, particularly in sectors such as tourism, agriculture, manufacturing, and technology.

However, there are certain legal requirements and restrictions that foreigners should be aware of:

  1. Private Limited Companies (LLC):

    • Foreigners can own 100% of a Private Limited Company (LLC) in Cambodia. This is the most common structure for foreign-owned businesses.

    • Foreigners can be shareholders and directors, and they benefit from limited liability protection.

  2. Sectors with Restrictions:

    • Some sectors have restrictions on foreign ownership. For instance, in certain industries like land ownership, foreigners can own up to 49% of the shares in a Cambodian company, with the remaining 51% owned by Cambodians.

    • Land Ownership: Foreigners cannot own land in Cambodia, but they can lease land for up to 50 years with an option to extend.

  3. Investment Incentives:

    • Cambodia offers several incentives to foreign investors, such as tax exemptions and duty-free imports for certain industries like manufacturing and agriculture.

  4. Joint Ventures:

    • Foreigners can also form joint ventures with Cambodian partners. This option can help navigate local regulations and share ownership in restricted sectors.

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How to Register a Business in Cambodia as a Foreigner

Once you’ve decided to start your business in Cambodia, here are the steps and the required documents to register your company.

Required Documents for Company Registration:

  1. Company Name: Choose a unique business name that will be approved by the Ministry of Commerce (MoC).

  2. Passport/ID Card of Shareholders: A soft copy of the passport for foreign shareholders or an ID card for Cambodian shareholders. Make sure the document includes the signature of the shareholder.

  3. Phone Numbers of All Shareholders: Contact information for each shareholder.

  4. Overseas Phone Number & Address: If the shareholder is based overseas, provide their contact information and address.

  5. Office Lease Agreement or Title Deed: Submit a copy of your office lease agreement or the land title if you own the property.

  6. Shareholder’s 4×6 Photo: A soft copy of a passport-sized (4×6) photo for each shareholder.

  7. Office Photo: A photo showing the physical office location.

  8. Google Map Location: A link or screenshot of the office location on Google Maps.

Once you’ve gathered all the documents, submit them through the Ministry of Commerce’s online registration system. After the review, you’ll receive your Certificate of Incorporation and Business Registration Number, confirming that your business is legally registered.

Additional Steps After Registration

After registering your company with the Ministry of Commerce, you need to:

  • Obtain a Tax Identification Number (TIN) from the General Department of Taxation (GDT). This is required for tax compliance and, if necessary, to register for VAT (Value Added Tax).

  • Open a Business Bank Account with a local bank in Cambodia to handle financial transactions for your business.

  • Apply for Additional Licenses: Depending on your business type, you may need specific operating licenses or permits, such as health and safety permits or sector-specific approvals.

How Can ABSC Help You?

For foreigners, navigating the business registration process in Cambodia can be overwhelming. ABSC – Angkor Business Service Consultant (Cambodia) Co., Ltd can help you every step of the way. They specialize in business registration and company services for foreign entrepreneurs, making sure all the required documents are filed correctly.

ABSC Contact Information:

  • Phone: +855 87 22 4890

  • Email: inquiry@absc.com.kh

  • Address: Unit 7, Floor 5, Building C5, Street 161, Sangkat Veal Vong, Khan 7 Makara, Phnom Penh, Cambodia

Conclusion

Foreigners can indeed own a business in Cambodia. With the right documentation and following the necessary legal steps, it’s relatively easy to establish your company. Cambodia offers a favorable business environment with low operational costs, a growing economy, and a strategic location in Southeast Asia.

If you’re ready to start your business or need help with the registration process, don’t hesitate to contact ABSC – Angkor Business Service Consultant (Cambodia) Co., Ltd for expert assistance.