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Online Business Registration in Phnom Penh, Cambodia

Phnom Penh, the capital of Cambodia, offers businesses the ability to register through the Online Business Registration (OBR) system, managed by the Ministry of Commerce (MOC). This system allows both local and foreign entrepreneurs to register businesses online, making the process quicker, more transparent, and easier to navigate.

Here’s how to go about registering a business in Phnom Penh using the OBR system:

Steps for Online Business Registration (OBR) in Phnom Penh

  1. Visit the Ministry of Commerce’s OBR Portal

    In some cases, the portal may have information in both Khmer and English. Make sure to navigate the English section if you’re not familiar with Khmer.

  2. Create an Account
    • Before you can start the registration process, you will need to create an account on the portal.
      • Click on the “Sign Up” or “Register” button.
      • Enter your email address, set a password, and fill in any personal details as required.
      • Once your account is created, you’ll receive a verification email to confirm your registration.
  3. Log In to the Portal
    • After confirming your email address, log into the portal using the credentials you’ve set up.
  4. Fill Out the Online Business Registration Form
    • Business Information: You will be asked to provide basic details about your company:
      • Company Name: The name you wish to register (make sure it’s unique and complies with the Ministry’s naming rules).
      • Business Type: Choose the type of company you are registering (Private Limited Company, Sole Proprietorship, Branch Office, Joint Venture, etc.).
      • Business Activity: Specify the business activities your company will be involved in (e.g., retail, manufacturing, services).
    • Ownership Details: If you’re a foreign investor, you’ll need to provide information about the foreign ownership structure.
      • For joint ventures or foreign-owned businesses, provide partnership agreements or investment certificates.
  5. Upload Required Documents
    • You will need to upload scanned copies of the following documents:
      • National Identity Card or Passport (for foreign nationals).
      • Proof of Business Address: Lease agreement or ownership document of the business premises.
      • Articles of Incorporation (for companies): This includes your company’s charter or operating agreement (for LLCs or joint ventures).
      • Shareholder and Director Information: List of shareholders and company directors, including identification details.
      • Bank Account Details: In some cases, you may need to provide proof of a business bank account (especially for foreign-owned companies).
  6. Payment of Registration Fees
    • The system will calculate your registration fees based on the type of business you are registering.
    • You can make the payment online through the OBR platform using credit/debit cards or other available payment methods.
  7. Submit Your Application
    • Once the form is completed and documents uploaded, submit your application for review. The Ministry of Commerce will review the information you’ve provided.
  8. Business Registration Approval
    • After the Ministry reviews your documents and application, you will receive a confirmation email, and your Business Registration Certificate will be issued online. This typically takes a few days to 1 week, depending on the complexity of your registration.
    • You can download and print the Business Registration Certificate directly from the OBR portal once approved.

Fees for Online Business Registration in Phnom Penh

  • The business registration fee varies based on the type of company you are registering. On average:
    • Private Limited Companies: Typically, the registration fees range from $200 to $500.
    • Sole Proprietorships: May be cheaper, usually around $100 to $200.
    • Additional fees for things like company name reservation, VAT registration, and licenses may apply depending on the nature of your business.

Fees for foreign-owned businesses may be higher due to the additional documentation required, such as investment certificates and legal fees.

Required Documents for OBR Registration (Common)

  1. For Cambodian Nationals:
    • Cambodian National ID (or Family Book).
    • Proof of residential address (e.g., utility bill, rental agreement).
    • Company Articles (if registering a Private Limited Company or Corporation).
    • Shareholder/Director Information.
  2. For Foreign Nationals:
    • Passport copy (or ID Card if available).
    • Proof of residential address (e.g., utility bill, rental agreement in Phnom Penh).
    • Investment Certificate (for foreign investors, if applicable).
    • Partnership Agreement (for joint ventures).
  3. For All Businesses:
    • Proof of business address in Phnom Penh (Lease Agreement or Ownership Certificate).
    • Business Plan (for certain sectors or when applying for investment incentives).

Foreign Ownership & Investment in Cambodia

Foreigners can own 100% of businesses in Cambodia, subject to certain exceptions in regulated sectors. The following points are important for foreign entrepreneurs:

  1. Foreign Ownership in Real Estate: Foreigners cannot own land in Cambodia but can lease land for up to 99 years. Foreigners can own property in buildings, but the land must be Cambodian-owned.
  2. Foreign Investment Law: Foreign investors can set up businesses in most sectors, but restricted industries (e.g., broadcasting, banking) may require local partnerships or joint ventures with Cambodian citizens.
  3. Incentives for Foreign Investors: Certain types of businesses, such as those in manufacturing, tourism, and agriculture, can receive tax incentives and other benefits under the Investment Law.

Advantages of Registering Online Through OBR

  • Speed: The online registration process is fast and efficient. In many cases, registration is completed in a few days.
  • Transparency: You can easily track the status of your application, and all documents are stored electronically.
  • Cost-Effective: It saves time and money compared to the traditional method of physically visiting the Ministry of Commerce.
  • Convenience: You can register your business from anywhere in the world, as long as you have access to the internet.

Conclusion

Registering a business in Phnom Penh, Cambodia, through the Online Business Registration (OBR) system is straightforward, accessible to both locals and foreigners, and provides a convenient way to establish a legal business entity in Cambodia.

Whether you’re a Cambodian citizen or a foreign investor, you can take advantage of the OBR system for a streamlined registration process. It’s important to ensure that you provide accurate documents and meet all the legal requirements to avoid delays or issues with your registration.

For any complex or specific questions regarding foreign investment, sector restrictions, or if you’re unsure about any part of the registration process, it’s always advisable to consult with a local business consultant or lawyer in Phnom Penh.