Cambodia

Ease of Doing Business in

Cambodia

This page summarizes Doing Business 2015 data for Cambodia. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region East Asia & Pacific
Income Category Low income
Population 15,135,169
GNI Per Capita (US$) 950
City covered Phnom Penh
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
135 134 down -1

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
55.33 55.05 down 0.28

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2015 Rank 184 DB 2014 Rank*** 183 Change in Rank down-1
DB 2015 DTF** (% points) 41.23 DB 2014 DTF** (% points) 39.75 Change in DTF** (% points) up1.48

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Cambodia East Asia & Pacific OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

View methodology
Procedures (number)
11.0 7.3 4.8

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

View methodology
Time (days)
101.0 34.4 9.2

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology
Cost (% of income per capita)
139.5 27.7 3.4

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in min. capital (% of income per capita)
26.1 256.4 8.8
No. Procedure Time to Complete Associated Costs
1 Deposit the legally required initial capital in a bank and obtain deposit evidence 1 day no charge
2 Conduct an initial check for uniqueness of the company name at the Intellectual Property Department 2 days Included in Procedure 3
3 Obtain the company name approval at the Business Registration Office 5 days USD 10
4 Publication of an abstract of the company organization documents (bylaws, memorandum, and articles of association) in a Gazette 7 days USD 15
5 Incorporate the company with the Business Registration Department in Ministry of Commerce 25 days on average USD 400
6 Make a company seal 1 day USD 15
7 Have registration documents stamped and approved by Phnom Penh Tax Department 3 days USD 250
* 8 Register the company for patent at the Tax office at the khan level 30 days on average (simultaneous with previous procedure) USD 285
* 9 Register the company for VAT at the General Tax Department 2 weeks (simultaneous with previous procedure) USD 100
10 Notify the Ministry of Labor of the start of operations and hiring of employees 30 days USD 250 (8-200 employees)
* 11 Receive inspection from Labor Inspector 1 day (simultaneous with procedure 10) Included in Procedure 10
* Takes place simultaneously with another procedure.

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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