Are you planning to open a business in Cambodia?
A new startup consists of so many things. In order to ensure the success of your business startup, it is so important to do things right.
People from different countries come to Cambodia to start the business. Mostly, foreigners come to Cambodia to start the business in tourism industry. It includes bars, restaurants, tour companies, guesthouses, etc.
If you want to start a business in Cambodia, make sure to follow the step by step process. Some important steps will be business location, hiring staff, etc. Before you go ahead, set up your business, and start working, the primary requirement will be going through the legal procedure.
For registering of new business, different countries have different requirements. In this post, we will talk about the legal procedure for opening a business in Cambodia.
The process of opening a new business in Cambodia is quite straightforward. The registration process is quite easy. All you need to do is fill the required information and pay the required registration fees. On the approval of your application, you will be given certificate of incorporation.
In Cambodia, the legal criteria for starting a sole proprietorship firm, private limited company (limited liability company), joint-venture company, a public limited company (PLC), branch office, and representative office are different.
The time it will take to set up the company, how long to open company bank account, issued share capital requirement, etc. are different depending on whether the business is a sole proprietorship, private limited, public limited, or any other type.
Sole Proprietorship in Cambodia
Depending on your situation, you may register your business under sole proprietorship. A sole proprietorship is a business owned and managed by a single person. The single business owner owns all business capital and he/she is entitled to the profit/loss of the business.
Starting a business without formally registering will be deemed as a sole proprietorship. As a sole proprietor, you will be responsible for all risks, returns, and management of your business.
The Cambodia Limited Liability Company (private limited company)
For starting a private limited company or limited liability company (LLC) in Cambodia, it requires the paid-up capital of a minimum of $1,000 (KHR4 million), two shareholders, and one director.
The director and shareholders can be foreigners and it is not necessary for them to be residing in Cambodia before.
The Cambodia Public Limited Company
The time it will take to set up a public limited company is about 8 weeks and the time it will take to open public limited company’s bank account is about 4 weeks. Just like LLC, the issued capital requirement for PLC is also $1,000.
For opening a public limited company, the minimum shareholders will require is 2 and minimum directors will require are 3. Also, banks, financial institutions, and companies listed on the Phnom Penh Stock Exchange are allowed to setup PLCs.
The Cambodia Branch and Representative Office
According to Cambodia Law on Commerical Enterprises, a foreign company can open a branch or representative office in the country. However, the branch or the representative office needs to have the same name as their foreign company.
For opening the branch, the company must appoint a representative and for opening a representative office, the company is not allowed to conduct any productive or commercial operations in the country.
These are different types of business entities in Cambodia. If you are looking for a sale of real estate property for your business, Dragon Real Estate can help you.