When considering how to start a business in Cambodia, it is really important to look at business registration. You might have the greatest business ideas and a wonderful business model, but all this of little use if you forget your business registration.
Here is our guide to the basics of business registration in Cambodia.
Business Registration Cambodia
Fortunately business registration in Cambodia is relatively straightforward, and can easily be incorporated into your business plan.
To register a business in Cambodia it should cost around $1,000 in government fees if you choose the DIY approach. Allow a further $500 to $1,000 if you employ an agent to help you with the paperwork – in many respects a sound investment.
This should be fine for most types of business, but should you require a more complex agreement you might wish to employ a law firm.
Business Ownership in Cambodia
Most businesses in Cambodia can be 100% foreign owned, however if the business is designed to acquire land then it needs to be 51% Cambodian owned. It is also possible to register a company in Camboia without being in the country, although you will have to courier some documents.
5 Steps to Business Registration in Cambodia
These are the steps to register a business in Cambodia:
1 First register the company with the Ministry of Commerce (MoC).
2 Open a company bank account.
3 Register for VAT with the Tax Office within a month.
4 Register with the Ministry of Labour.
5 If your business requires additional licences, these need to be registered at the appropriate ministry – there may be additional fees and requirements so you should seek guidance on this.
The Bottom Line and Business Tax Reporting
To register a 100% owned foreign company in Cambodia you need to pay the following government fees – MoC fee; Tax Registration, Patent Fee; Ministry of Labour; Articles and Facilitation Fee. These should come to about $1,000.
In addition all businesses need to carry out both monthly and annual tax reporting. Annual fees include MOC Annual Declaration of Commercial Enterprise, Tax Patent and Annual Tax in Income.
You should also allow for between $100 and $500 for monthly accounting and tax, depending upon the size of your business.
Other services you might wish to include are a nominee director, especially if you are seeking to acquire land in Cambodia.
For further information on establishing a business in Cambodia, read our Cambodia Guides.