How Many Types of Companies Are There in Cambodia

How Many Types of Companies Are There in Cambodia

there are several types of business entities or legal structures that you can choose from depending on the nature of your business and ownership requirements. The most common types include:

a. Private Limited Company (PLC)

  • The most common form of business in Cambodia, particularly for small to medium-sized businesses.
  • Characteristics:
    • Limited liability for shareholders.
    • Must have at least 1 shareholder and a maximum of 30 shareholders.
    • The company must be registered with the Ministry of Commerce.

b. Public Limited Company (PLC)

  • Similar to a private limited company but designed for larger companies.
  • Characteristics:
    • Can issue shares to the public and is typically listed on the stock exchange (if applicable).
    • Must have at least 5 shareholders.

c. Sole Proprietorship

  • A business owned and operated by a single individual.
  • Characteristics:
    • The owner has unlimited liability, meaning personal assets are at risk.
    • Best for small businesses or self-employed individuals.

d. Branch Office

  • A branch office is a legal extension of a foreign company operating in Cambodia.
  • Characteristics:
    • A foreign company can establish a branch to conduct business activities in Cambodia.
    • A branch office can only carry out activities related to the parent company’s business.

e. Representative Office

  • A foreign company can open a representative office to promote and oversee its business activities but cannot conduct direct commercial business or make sales.
  • Characteristics:
    • It is mainly used for market research, liaising with clients, and brand promotion.

f. Joint Venture (JV)

  • A Joint Venture is formed between a local Cambodian company and a foreign investor, often in industries where foreign ownership restrictions apply.
  • Characteristics:
    • The foreign partner and local partner share the responsibilities, profits, and liabilities.
    • Joint ventures are common in industries like construction, agriculture, and manufacturing.