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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Cambodia

Register Company in CambodiaDoing a business in Cambodia is not without its pros and cons. Every country is different and each would come with its own sets of challenges, including Cambodia. But despite the challenges that this country poses for potential investors, it remains an attractive location to set up a company.

Cambodia’s economy is still going strong because of the low start-up costs and the large and cheap workforce that is available for hire. Those are highly attraction qualities for any potential investor who is looking to expand or begin a business. The country running on a dollarized currency is just another advantage point, making business dealings much easier.


The advantages of registering a company in Cambodia

One of the advantages of starting a business in Cambodia is the low start-up costs involved. Potential investors can have their company registered for as low as $1000.  An additional bonus is that companies registered in Cambodia enjoy a 100% corporate tax exemption benefit for up to nine years.

Companies can also be registered in Cambodia with only two shareholders and one director in place, all of whom can be foreigners and who don’t necessarily have to be residing in Cambodia at the time of the company registration.

There are also no price controls on investor products and services, and businesses get to enjoy duty-free imports of production equipment and material.


The disadvantages of registering a company in Cambodia

One major disadvantage of having your company registered in Cambodia is that it can take up to four months for a complete registration to be done. For investors, that is a long time to wait for your business to be up and running, which is never a good thing.

There’s a saying that goes “time is money”, and four months to wait to begin a business can sometimes be too long of a period for an investor to wait. Business owners must also sign a lease for a physical office space before the business can even get started.

And once you’ve got that physical space, application for electricity can take up to six months to be reviewed. And while the available workforce for hire may be large, only approximately 10% of the population speaks English, which can prove to be a big challenge for international companies.

Cambodia is ranked 6th in the world by the World Bank as the most difficult place in the world to do business for some of the reasons listed above.


Cambodia’s options of a business entity

There are three types of business entity options to choose from:

  • A private limited company, which is the choice for most owners
  • A sole proprietorship, where the business is owned and operated by one person
  • A general and limited partnership, which is an agreement between two or more persons to combine their property, knowledge or activities to carry out a business.

Foreign subsidiaries, branch and representative offices registering under these options must be registered with the Ministry of Commerce for all three options.

Register Company in Cambodia

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