Company Registration in Cambodia
The Kingdom of Cambodia is the full name of Cambodia. This nation is situated on South East Asia’s Indo-Chinese Peninsula. Between Vietnam, Laos, and Thailand is where you’ll find Cambodia. This nation has a strong reputation for its rich cultural legacy and other noteworthy endeavours. A total of 15 million people live in Cambodia. This would make it the perfect location for conducting business. The process for registering a corporation in Cambodia is quite simple, but it’s crucial to follow the local law’s requirements.
- Procedure for Company Registration in Cambodia
- Documents Required for Company Registration in Cambodia
- Liaising with the concerned regulatory authority for company formation in Cambodia
- End to End Support
Company Registration in Cambodia- An Overview
Between Vietnam, Laos, and Thailand, Cambodia is situated in the South East Asian region. This nation is well-known for its religious and cultural traditions. One of the oldest and biggest religious complexes in the world is the well-known temple of Angkor Watt. The Khmer Empire was in power when this temple was constructed. It is advantageous for an entrepreneur to run a business in Cambodia because of all the aforementioned factors. An investor must therefore register a corporation in Cambodia.
Forestry, agriculture, and tourism are the country’s three main industries. Almost 4 million tourists visited the nation in 2014. In addition to this, Cambodia’s textile and apparel industries are flourishing. Clothing and textile exports generate significant money for Cambodia.
It is simple to register a company in Cambodia because there must be a minimum of two shareholders and one director. A foreigner does not need to be physically present in Cambodia to incorporate a business. As a result, doing business in Cambodia is relatively easy.
One of the key industries that draws visitors from all around the world is tourism. In actuality, the GDP as a whole has been boosted by around 10% by tourism. The government has created the concept of eco-tourism, which draws more tourists from abroad, to encourage sustainable growth. An investor should take into account all of the aforementioned aspects before registering a company in Cambodia.
Benefits of Company Registration in Cambodia
The following are the benefits of company registration in Cambodia:
- Tourism Industry
The majority of revenue going into the GDP in Cambodia comes from the burgeoning tourism industry. In actuality, the GDP as a whole has been boosted by around 10% by tourism. The government has created the concept of eco-tourism, which draws more tourists from abroad, to encourage sustainable growth. Tourism and other related industries account for more than 10% of the nation’s GDP.
- agricultural industry
The agriculture industry is another one that is concentrated in Cambodia. In this nation, agricultural crops such rice, corn, sugarcane, coconuts, and cassava are farmed. The cultivation of these crops increases Cambodia’s ability to generate income.
- Government Program
The government has launched a programme involving Qualified Investment Projects (QIP). Under this programme, resident businesses in Cambodia are eligible for a number of benefits, including a nine-year corporate tax exemption as well as duty-free subsidies on goods and other items. In addition, up to 35% of the value of new assets and equipment may be depreciated.
- Different Traditions and Cultures
The varied culture and traditions of Cambodia are well-known. One of the oldest and biggest religious complexes in the world is the well-known temple of Angkor Watt. The Khmer Empire was in power when this temple was constructed. This draws travellers from around the world.
- Petroleum and Gas Reserves
One of the most intriguing facts for the growth of tourism in Cambodia is the existence of old oil and gas reserves. As a result, an investor must register a corporation in Cambodia.
Eligible Business Structures for Company Registration in Cambodia
The following are eligible business structures for company registration in Cambodia:
- Company Limited Liability
This type of organisation has a maximum liability of the initial investment. There is no personal liability of the shareholders. The most common type of business structure in Cambodia is this kind of entity. KHR 4 million is the required minimum capital to form this type of organisation (about USD 1,000). Generally, the Council for the Development of Cambodia accepts an investment made by a foreign investor (CDC). The needs of the members and directors determine how adaptable this sort of company organisation is. Three different types of limited liability companies are as follows:
- Personal LLC
- LLC with one member.
- Division Office
A branch office is only an overseas parent company’s extension. The overseas parent firm would be responsible for the branch office’s debts. The concept of a distinct legal entity does not exist. This type of entity’s foreign parent business would be responsible for any liabilities. In Cambodia, branch office activities are typically subject to taxation.
- Reprographic Office
A representative office is only the overseas parent company’s extension. This type of organisation represents the foreign parent locally. The primary benefit of establishing this kind of firm is quick clearance from the government. Other from this, there are no taxes on any profitable activities in Cambodia.
Minimum Eligibility Criteria for Company Registration in Cambodia
The following criterion has to be sufficed for company registration in Cambodia:
To conduct the activities in Cambodia, the Company must choose an agent. The partnership or firm must be represented by this agent when doing business. The agent must be a natural person (competent person) who resides in Cambodia.
- Registered Business Address
To conduct business, the Corporation needs a physical registered office. One of the prerequisites for registering a company in Cambodia is this.
- Keep records.
According to the requirements of the Law on Commercial Enterprises, all businesses are required to keep records at their registered location. The following documents must be kept up to date:
- Accounts Annual
- Meeting records, minutes
- Copy of all notices posted about the business.
- The incorporation papers.
- Using a Khmer name
A Khmer name must be used by the applicant when applying for a Cambodian company registration. The name in Khmer must also be published if the applicant is a foreign business and wishes to have it displayed in another language. The Khmer name needs to be bigger than the English name. The name must appear in Khmer on all firm correspondence including official letterheads.
- Business Secretary
The Firm must hire a company secretary to carry out all the processes linked to company..
Procedure for Company Registration in Cambodia
The following procedure must be utilised for company registration in Cambodia
- Online Information Form
An applicant for a Cambodian company registration must comply with Article 5 of the Subdecree on Company Registration using Information Technology System. The system must then be updated with all attachments. The applicant may also request that a representative complete the online form on their behalf. The following webpage requires the upload of information and documents.
- Online Records
All the details must be submitted online for business registration process. To finish the business registration, this must be done in electronic format and sent to the appropriate ministries. In the event that inaccurate information is submitted, the ministry shall inform the applicant accordingly.
- Reviewing Application
According to Article 8, the ministry will consider the application after receiving it. The application would be received by the ministry after three business days. The Ministry of Commerce will give the applicant the certificate if there are no discrepancies with the application. The certificate would be made available digitally. The same can be printed out if the applicant wants a physical copy of it.
- Tax Registration
The Ministry of Tax and Ministry of Finance would verify the applicant’s submitted documentation after the Ministry of Commerce issues the certificate. Following this, the applicant would receive digital tax registration authorization. The applicant would also receive a patent certificate, a tax registration certificate (VAT, or value added tax), and a tax registration identity card.
- In a bank
The applicant is required to submit their corporate bank account details along with their tax identification card and value added tax (VAT) certificate after 15 working days.
- The Ministry of Labor is reviewing
After the applicant obtains the Business Registration and Tax Registration, the Ministry of Labour and Vocational Training will assess the entire procedure. The applicant for a Cambodian company registration would receive an administrative number from this ministry. and the same for the, and the, and the, and the, and the., and the. It would take one working day to complete this. Suppose the above has not been carried out in one day, then it is regarded that the business has started.
- Cambodian Development Council (CDC)
After 20 days, the CDC would confirm the legitimacy of the evidence if the project was not on the negative list.
Compliances for Company Registration in Cambodia
The following compliances have to be mandatorily followed by a company in Cambodia:
- Governing Body Meeting
Meetings of the Board of Directors shall be held at least quarterly. This would apply to all Cambodian businesses.
- Declaration of Yearly Submission
Every year, the corporation must submit its annual declaration. This would be provided to the Ministry of Commerce (MOC) showing the company’s status.
- Accounting Statements
The MOC standards must be followed for publishing annual financial statements. 21 days before the shareholders meeting, this must be done.
- Rate of Corporate Tax
The business tax rate is 20%. The rate for oil and gas firms is 30%.
The following papers are necessary for the registration of a corporation in Cambodia:
- The lease for the property
- Articles of Association, the Memorandum of Association, and the Directors’ passport information and visas
- an image of the directors ( which are not older than three months)
- Letter of Appointment of the Director for the branch office and representative office Licenses given by the respective ministries
Frequently Asked Questions
What is the Cambodian business tax rate?
In Cambodia, the corporate tax rate is 20%. Corporate tax rates are 30% for oil and gas companies.
What conditions must be met in order to register a business in Cambodia?
The following documents must be submitted in order to register a business in Cambodia:
- Agent Keep Records at Registered Location
- Usage of Company Secretary’s Name in Khmer.
What types of business are practised in Cambodia?
Limited Liability Corporation Representative Office Branch Office.