Set up a company in Cambodia

When setting up a company you may want to consider these factors:

1. Business Factors

Business factors such as:

  • The industry and type of business
  • Nationality of the headquarters/individual(s) and
  • Presence of existing trade agreements or relationships

2. Location

Location will be another factor. Separate cities and regions may have different rules, costs and availability. It is always recommended to seek advice from relevant professionals, such as business or legal advisors, accountants and others depending on your needs.

3. Regional Language

Regional language may be an influence. Although Khmer is the official language, different locations in Cambodia use varying dialects, and some minority languages are also used, meaning some terminology may be different in various regions. Some Khmer businessmen will speak English, but sometimes not to the proficiency required to conduct business.

4. Your Options

Cambodia imposes a significant number of procedures to be followed by entrepreneurs and those wishing to set up a business. It is complicated and expensive process, with notable start up capital requirements. Although the regulations are complex, the Cambodian government is progressively easing the difficulty to promote a pro-business nation.

Representative Office

This is one of the relatively faster and simpler ways to set up a company in Cambodia. ROs are prohibited from undertaking any profit-making activities including the buying or selling of goods, performance of services or engagement in manufacturing, processing or construction. The name of the RO must be the name of its principal.

Steps Required:

  • Apply for approval with the CDC – conditional registration certificate
  • Apply for approval with the CDC – final registration certificate
  • Time: Approximately 1 month
  • Cost: Varies

Wholly Foreign-Owned Enterprise (WFOE)

WFOEs are limited-liability corporations organized by foreign nationals and capitalized with foreign funds. WFOEs are often used to produce the foreign firm’s product in mainland Cambodia for later export to a foreign country. The WFOE must go through the entire registration and incorporation process, and is the most costly business structure to setup.

Steps Required:

  • Deposit required capital
  • Register company name
  • Incorporate company with Business Registration Department
  • Make company seal
  • Submit registration documents
  • Notify Ministry of Labour & receive approval
  • Time: 2-3 months
  • Cost: US 800

Branch

This is the final business form that may be set up by a foreign investor in the Kingdom of Cambodia. Branches are allowed to perform the same acts as a commercial representative office.

Time: Approximately 1 month

Cost: Varies