Search
Close this search box.
Search
Close this search box.

6 Steps to Register a Company in Cambodia 2021

How to be an entrepreneur

Due to the cheap labor costs and rapidly growing economy, more and more foreigners are choosing to register company in Cambodia. Traditionally, Cambodia has been an ideal location for businesses in the textile industry seeking to outsource the more labor-intensive portion of their production to reduce costs. However, in recent years, the Cambodian government has implemented policies to attract investments in other sectors through the creation of Special Economic Zones and its Qualifying Investment Projects (QIP) scheme. Hence, you may wish to consider setting up a company in Cambodia, especially if your business activities qualify for QIP status. To set up a company in Cambodia, you can follow the steps below:

1. Select an optimal business entity

Before you proceed with company incorporation, you would want to first select a business structure that best suits your long-term goals and business activities. While there are many different types of business entities in Cambodia, most business owners will choose between setting up a subsidiary (limited liability company) or a branch office when seeking to expand their business into another country.

The main difference between a limited liability company and a branch office is in terms of liability. In the case of a limited liability company, the company is regarded as a separate legal entity from the shareholders and directors of the company. This means that they will not be held liable for any debt and obligations incurred by the company, except for the number of shares they hold in the company if the company goes bankrupt. A branch office, on the other hand, is regarded as an extension of the parent company. In other words, the parent company will be held accountable for the debt and liability incurred by the branch office. In the case of bankruptcy, the parent company will be responsible for paying off the debt for its branch office in Cambodia.

Both limited liability companies and branch offices will be required to pay corporate income tax and value-added (VAT) tax if they meet the minimum threshold.  There is no requirement to appoint a local resident director or company secretary for both types of business entities. Instead, the company must appoint a local representative agent and have a registered office address.

However, unlike a limited liability company, a branch office cannot apply for Qualifying Investment Project (QIP) status. A QIP status can grant a Cambodia company corporate income tax holidays, exemption from import duties for certain imports, and other monetary benefits. However, not all business activities qualify for QIP. You may wish to consider setting up a subsidiary (limited liability company) instead of a branch office if your business activity qualifies for the QIP application.

Alternatively, if you do not plan to conduct any income-generating activity in Cambodia, you can consider setting up a representative office. A representative office is an extension of the parent company and does not have a separate legal entity. If you are not ready to start operations in Cambodia yet, you may want to set up a representative office in Cambodia to conduct some prior market research and promote your parent company’s presence.

2. Reserve company name

Once you have decided on the optimal business structure, you can proceed to register your company name. First, you will have to create an account in Cambodia’s online business registration portal, also known as the Single Portal. This can be done by creating an account on CamDigiKey and filling in your personal information. After your account has been created, you will be able to access the business registration portal, where you can reserve your company name. Do remember to check the availability of your company name through the search entity function in the Ministry of Commerce website before you register your company name.

3. Prepare incorporation documents

After you have reserved your company name, you can start to prepare the documents needed to register a company in Cambodia. Some of the documents required include a lease agreement of the company’s office, identification documents of shareholders and directors, and the company’s Articles of Association. If any of the shareholders in the company is a legal entity, you will also have to provide the parent company’s authorization letter, certificate, and Articles of Association.

4. Register your business

Through the Single Portal, you will be able to register your company with the Ministry of Commerce by submitting the required documents. The department will take a maximum of 8 days to process your application.

5. Complete tax registration

When you are registering for your company in the Single Portal, you can also register your company for tax with the General Department of Taxation through the same application. Documents required include proof of paid property tax or property information of the company. You will also be required to provide information about your corporate bank account within 15 working days after tax registration. In Cambodia, companies are classified into three categories of taxpayers: small taxpayer, medium taxpayer, and large taxpayer based on the amount of annual revenue declared. Generally, medium taxpayers and large taxpayers will pay a corporate income tax rate of 20% while small taxpayers will pay a corporate income tax ranging from 0% to 20%.

6. Open a corporate bank account

The last step is to open a corporate bank account with a reputable bank. It is important that you segregate company finances from personal finances through a corporate bank account to ensure greater transparency and accountability. There are many types of business bank accounts you can choose to open such as a business checking account, business savings account, merchant account, and multi-currency account. Many companies typically have more than one bank account and each bank account will serve different functions. However, if you are operating a small business, it may be better to start out with just one corporate bank account.

Conclusion

With the launch of the new Single Portal, it has become relatively easier to register a company in Cambodia as the whole incorporation process can be completed online. Many government services can also be applied through the Single Portal and the Cambodian government has plans to expand this system to incorporate more government agencies. If you face any difficulty registering through the portal, you can refer to the user guide found on the portal.


Subscribe to Our Newsletter

Related Articles

Top Trending

February 26 Zodiac
February 26 Zodiac Traits: Unveiling Astrological Secrets
animeowl
Why is AnimeOwl Not Working: Common Issues and Solutions
who is rachel hollis boyfriend
Rachel Hollis’ Long-Term Relationship: The Story Behind Her Boyfriend Cez Darke
clary fisher
The Life and Career of Clary Fisher: From Marriage to Divorce
chad dorman wife
The Tragic Story of Chad Dorman's Wife Laura Dorman

LIFESTYLE

Egyptian Cotton Sheets for Your Bed
A Beginner's Guide to Choosing the Perfect Egyptian Cotton Sheets for Your Bed
Long Lehenga Choli
Elegance Redefined: Navigating the Diverse World of Long Lehenga Choli Designs
valentines day outfits
Top 20 Trendy Valentine's Day Outfits in 2024 For Every Occasion
eldritch foundry
Unleash Your Imagination With Eldritch Foundry Custom Miniatures
jayda wayda braids
How Long Do Jayda Wayda Braids Last [Durability and Maintenance Tips]

Entertainment

animeowl
Why is AnimeOwl Not Working: Common Issues and Solutions
paige vanzant leaks
Exposing the Truth: The Controversy Surrounding Paige VanZant Leaks
schavaria reeves accident
The Truth Behind Schavaria Reeves Accident: What Really Happened?
bill boals
The Life and Career of Bill Boals: Husband of Margo Martindale
is terrifier based on a true story
Exploring the Truth: Is 'Terrifier' Truly Based on a Real Story?

GAMING

Crypto Gambling Innovations
Innovations in Crypto Gambling: Shaping the Future of Online Betting
User Experience Design in Online Casinos
The Role of User Experience Design in Online Casino Platforms
New Online Service for Fans of Sports Betting and Casino Games
A New Online Service for Fans of Sports Betting and Casino Games
Are Online Gaming Bonuses Worth Pursuing
Are Online Gaming Bonuses Worth Pursuing These Days?
why does turles look like goku
Why Does Turles Look Like Goku: The Saiyan Secret Explained

BUSINESS

Work Life Balance Europe vs America Comparison
Europe vs America: Decoding Work-Life Balance Differences
Romania 28th Place EMEA Private Companies Ranking
Romania Rises to 28th in Top EMEA Destinations for Private Firms - PwC
Employee Advocacy
The Role of Employee Advocacy in Enhancing Your Online Reputation
Top 10 World's Wealthiest Men
Top 10 World's Wealthiest Men: 2024 Rankings Revealed
Complexities of Pricing Algorithms
Navigating the Complexities of Pricing Algorithms

TECHNOLOGY

Google Apologizes for AI's Shocking Replies
Google Apologizes for AI's Shocking Replies on Controversial Figures
How to Encrypt Your Gmail Messages
Is Gmail Closing in August? Google Clears the Air
Software Development Career Success Tips
Tips For Succeeding In Your New Career As a Software Developer
Elon Musk
Elon Musk Hints Xmail Launch: A New Gmail Alternative
Laser Marking
Laser Marking: A Catalyst for Industrial Innovation and Sustainability

HEALTH

Top Healthiest and Unhealthiest Countries
Top Healthiest and Unhealthiest Countries Globally - 2024 Rankings
Best Way to Prevent Gum Disease
What is the Best Way to Prevent Gum Disease?
Norovirus Outbreak Northeast CDC Data
Norovirus Outbreak Hits Northeast: Latest CDC Data Reveals Spread
Brain Stimulation RTMS vs DTMS
Decoding Brain Stimulation Therapies: RTMS vs DTMS Explained
Top 10 Easy Stress & Anxiety Relief Techniques
Top 10 Easy Stress & Anxiety Relief Techniques - Find Calm Fast