Cambodia is a country in the Southeastern part of Asia with a growing economy that makes foreign investors choose it when wanting to open a company.
Business entities in Cambodia
The first step in setting up a company in Cambodia is to choose what business entity type best suits your interests. There are several types, namely limited liability companies that can be public or private, representative or branch offices which are usually used for operations that are not commercial.
The private limited liability company is the type that foreign entrepreneurs most often prefer, given the fact that the public one only allows you to open either a financial establishment or a bank.
For the private limited liability company, the requirements are as follows:
- paying a capital of no less than 1,000$, where it is important to mention that the authorities can ask for more if it is about a more complex kind of project,
- at least two shareholders,
- minimum one director.
The employers can all be foreigners and do not need a Cambodian residence for the company formation.
Steps for registering a company in Cambodia
1. You need to open a corporate bank account where you deposit the necessary capital before opening the company in Cambodia. The bank account has to be opened on the country's territory.
2. The second step is choosing a suitable name for your company that has not already been used. This needs to be checked first and then you obtain an approval of the company's name at the Business Registration Department.
3. Then you need to incorporate the company with the Ministry of Commerce where you submit information such as corporate form, stated capital, company name, notification of company establishment and names of the shareholders and directors.
4. You need to apply for an announcement of the company registration in a mass-circulation newspaper.
5. Furthermore you will have to make a company seal issued by the Ministry of Commerce.
6. Then at the General Tax Department some documents need to be stamped, such as the certificate of incorporation or the Ministry of Commerce letter of approval.
7. Finally you have to notify the Ministry of Labour that you started hiring people as all businesses need to submit a declaration before their opening. Then you will also receive the inspector from the Ministry of Labour who has to conduct an inspection.