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Starting a Business in

Cambodia

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Cambodia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Cambodia to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Conduct an initial check for uniqueness of the company name and Obtain company name approval at the Business Registration Department

    Agency: Business Registration Department, Ministry of Commerce

    The Ministry of Commerce issued a Prakas No. 299 on 29 December 2015 to implement a new procedure for registration of company through the online system.
    Website: www.businessregistration.moc.gov.kh

    The company is required to set up an account on business registration website of Ministry of Commerce, so they can perform the name search availability and reserve the name online by uploading the ID Cards or Passports of Owners.

    The payment of government fee shall be done online as well through certain commercial bank including ACLEDA bank, Foreign Trade Bank.
    7 days USD 10
    2

    Incorporate the company with the Business Registration Department in Ministry of Commerce

    Agency: Business Registration Department, Ministry of Commerce

    Under the new Prakas 299 of December 2015. Every businessman and trade company based in the Kingdom of Cambodia is obligated to register their business through the Ministry of Commerce’s automated business registration system from anywhere via this Website: www.businessregistration.moc.gov.kh

    The following documents must be provided online to the Ministry’s Registrar in the specified quantity:

    1. Documents containing address, which can be electricity bill, water bill, house or building rent agreement, bank statement, etc.
    2. Agreement establishing the company
    3. Photos 4x6
    4. Identity card or passport of the company’s owners and administrator
    5. Honest declaration by the administrator to have no previous conviction in any commercial, civic or criminal case, and that he/she is currently not a civil servant bound by the Statutes of Civil Servants of the Kingdom of Cambodia
    6. In the case where the company’s owners are legal persons:
    - a certified copy of the original legal documents proving the company’s registration
    - the original copy of letter appointing the legal person as the representative issued by the owners of the company
    7. The company must provide two (02) copies of the original version of its statute, accompanied by a statement of bank deposit, to the Department of Business Registration within 30 days starting from the date a business registration certificate is issued. During this period, if the Department of Business Registration does not receive the original copy of the statute from the applicant, Ministry of Commerce reserves its right to reject the company’s registration and delete it altogether from its database.

    30 days USD 420
    3

    Make a company seal

    Agency: Ministry of Commerce

    The Ministry of Commerce registers and acknowledges the seal of the company. The company itself must produce a seal in accordance with formats provided in the MOC.
    1 day USD 15
    4

    Open a bank account, deposit the legally required initial capital and obtain deposit evidence

    Agency: Bank

    The company must open a bank account in its name. It must also deposit the initial capital of KHR 4 million 30 days after having obtained the certificate of incorporation at any authorized bank in Cambodia. The bank must provide a bank statement certifying the deposit.
    1 day no charge
    5

    Have registration documents stamped and approved, register for TIN, Patent tax and VAT tax

    Agency: General Tax Department 

    The documents need to be stamped are the Memorandum and Articles of Association and the Certificate of Incorporation. This is obtained at one of the tax department branch offices at the khan (district) level, of which there are 7 in the city.
    30 days USD 100
    6

    Notify the Ministry of Labor of the start of operations and hiring of employees

    Agency: Ministry of Labor

    All businesses must submit a written declaration to Ministry of Labor before starting their operations.
    In addition, each enterprise with at least eight employees must have established internal regulations that adapt such general provisions of the labor code as conditions of hiring and calculation and payment of wages and perquisites, including in-kind benefits, work hours, health and safety measures, and personal leave, including holidays. The internal regulations must be filed within 3 months of firm opening. All establishments must maintain a payroll ledger, a declaration of personnel, a book of establishment, and labor regulations (in Khmer version). As required by law, local employees shall be provided with a “labor book” upon completing a physical examination at the Labor Health Center.

    The procedure cost covers five processes:
    - Registration for opening of enterprise
    - Registration of enterprise/establishment ledger
    - Registration of payroll
    - Having internal regulation certified
    - Issuance of letter recognizing the election of shop steward for enterprise/establishment employing
    30 days KHR 280,000 (8-100 employees)
    * 7

    Submit company original statutes and capital deposit evidence at the Business Registry

    Agency: Business Registration Department in Ministry of Commerce

    The company must provide two copies of the original version of its statute, accompanied by a statement of bank deposit of the chosen capital, to the Department of Business Registration within 30 days starting from the date a business registration certificate is issued.
    During this period, if the Department of Business Registration does not receive the original copy of the statute from the applicant, Ministry of Commerce reserves its right to reject the company’s registration and delete it altogether from its database.
    1 day (simultaneous with previous procedure) No charge
    * 8

    Receive inspection from Labor Inspector

    Agency: Ministry of Labor

    All new businesses must receive inspection from Labor Inspector at the Ministry of Labor.
    1 day (simultaneous with procedure 10) Included in Procedure 6
    * 9

    Register at the National Social Security Fund

    Agency: National Social Security Fund

    Based on the NSSF Law, any enterprise that has eight or more employees is required to register with the NSSF.

    At the beginning an employer needs to fill out form 1.01 (Registration of an Enterprise) and 2.01 (Registration of Employees) and file them with NSSF a long with supporting documents listed on form 1.01. The two forms can be obtained from any of NSSF offices.
    14 days (simultaneous with previous procedure) No charge

    * Takes place simultaneously with previous procedure.