How to Run a Business in Cambodia

Running a business in Cambodia involves several steps, from legal requirements to operational considerations. Here’s a general guide on how to start and operate a business in Cambodia:

Step 1: Choose the Right Business Structure

Private Limited Company (PLC): Common for small to medium-sized businesses.
Joint Venture (JV): For foreign businesses partnering with local companies.
Branch Office: For foreign companies wishing to operate in Cambodia.
Representative Office: For foreign companies wishing to represent their interests in Cambodia but not directly engage in commercial activities.

Step 2: Register Your Business

As previously mentioned, business registration is done through the Ministry of Commerce (MOC). After getting your company registered, you’ll receive a Business Registration Certificate and a Company Tax Identification Number (TIN).

Step 3: Open a Bank Account

Opening a business bank account in Cambodia is necessary for financial transactions. You will need your registration certificate, TIN, and identification documents to open the account.

Step 4: Register for Taxes

VAT Registration: If your company’s annual turnover exceeds a certain threshold (currently around KHR 250 million or roughly $60,000), you need to register for VAT with the General Department of Taxation (GDT).
Other Taxes: Depending on your business, you may be subject to other taxes like corporate income tax (CIT), withholding tax, and payroll tax.

Step 5: Employment and Labor Laws

Cambodia has a labor law that regulates worker rights, wages, and conditions.
- Minimum Wage: The minimum wage for factory workers (as of 2023) is approximately $200/month.
- Labor Contracts: Ensure you have formal labor contracts for your employees.
- Social Security: Employees must be registered for the National Social Security Fund (NSSF), which covers healthcare, pensions, and work-related accidents.

Step 6: Set Up Your Accounting and Financial Systems

Implement proper accounting and bookkeeping practices to comply with Cambodian regulations. Companies are required to maintain proper financial records and file taxes on a monthly or quarterly basis.

Step 7: Obtain Necessary Permits and Licenses

Certain businesses (like those in construction, healthcare, or food services) may require additional industry-specific permits or licenses from regulatory authorities.

Step 8: Understand the Business Environment

Cambodia is known for its pro-business environment, but it still has its challenges, including bureaucracy, language barriers (Khmer is the official language), and infrastructure concerns.
Foreign investors should be aware of the foreign ownership laws and potential restrictions on certain sectors (e.g., real estate and land ownership).

Step 9: Cultural and Local Considerations

Networking and Relationships: Building local relationships is key to success in Cambodia. It’s often beneficial to work with local partners or hire local staff who understand the culture and business practices.
Language: While many Cambodians speak English, especially in Phnom Penh and tourist areas, learning basic Khmer can be very useful for business operations.

We offer new business registration service! Online Business Registration Cambodia
If you are looking to register a new business in Cambodia. We are here to help you.
We offer free consultation.
↙️ប្រឹក្សាយោបល់សម្រាប់ព័ត៌មានបន្ថែម
ABSC- ANGKOR BUSINESS SERVICE CONSULTANT (CAMBODIA) CO., LTD
Tel: (+85587224890 (ខ្មែរ)
Tel: (+85586224890 (English)
Telegram: https://t.me/angkorbusiness
Email: angkorbusinessservice@gmail.com
Website: https://angkorbusiness.com/
Website: https://angkorbusinessservice.com/
Website:https://businessregistrationcambodia.com/
Website:https://onlinebusinessregistrationcambodia.com/
Website:https://businessregistrationincambodia.com/