Business Startup in Cambodia
Are you considering starting a new business in Cambodia but need more information?
Look no further. You’ll find everything you need right here. From how to open a business in Cambodia, necessary licenses, calculating and paying tax; right through to how to close your company when you’re finished.
1. What you need for officially open a Business in Cambodia
- A valid visa, work permit and a bank account with a minimum balance of USD$1,000 (4 million riel) – you may withdraw this as soon as the business is officially established.
- A certificate of good health.
- More often than not, a police report from your home country identifying you as a person(s) of good standing with no history of criminal activity.
2. The Process of opening a Business in Cambodia and how long it takes
- To register a company in Cambodia the name must also be registered with the MoC.
- To receive the company’s constitutive documents—which include the certificate of incorporation, the Articles of Association, and the business license—you will need to register with the Ministry of Commerce (MoC). The process can now be carried online here.
- Within 15 calendar days of having registered with the MOC, the new enterprise must register with the GDT. At the GDT, you will obtain the tax patent and the VAT certificate of the new company.
- Finally, all enterprises must pay a visit to the Ministry of Labour and Vocational Training (MLVT), which registers the company under the Labour Law, provides workbooks for Khmer employees and work permits and employment cards for foreign workers. If the new company has more than eight employees, they must also be registered under the National Social Security Fund.
- The World Bank latest estimation is that it takes 99 days for the whole process to be completed.
3. Business Licences in Cambodia
- Newly established businesses also need to obtain the necessary licences in order to operate.
- Licences are issued by the relevant ministry. For example, a publishing company would need a licence from the Cambodian Ministry of Information; while a business aimed at tourists would need to apply to the Cambodian Ministry of Tourism.
- Licences are renewed annually.
- The Cambodian Ministry of Labour must also be contacted and given a Declaration of the Opening of Business before operations start or within the first 30 days of operation if the business has less than eight employees.
- Within 15 calendar days of registering with the MoC, businesses must register with the General Department of Taxation (DGT) to receive a taxpayer’s identification number (TIN).
- Registering as a taxpayer will cost you $500 and $650, for a half-year and a full-year respectively.
- At the GDT, you will obtain the tax patent and the VAT certificate of the new company. If all is in order, it will take the GDT between two and four weeks to issue the tax patent and VAT certificate.
- Various taxes are also payable each month, usually on the 20th. They are the tax on salary; the prepayment of profit tax (equal to 1% of turnover); and VAT (equal to the total VAT charged to your customers minus VAT payable to your suppliers).