Cambodia Joint Stock |
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A Joint Stock company is an attractive option for many international investors in Cambodia, since it ensures full foreign management control. However, despite new laws introduced in 2006 to encourage foreign investment, entrepreneurs should be prepared for inconsistent regulations, bureaucratic challenges and licensing delays. The following information will help you determine whether a joint stock Cambodian company is the optimum corporate structure to fulfill your business objectives. |
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| Advantages of an Cambodia Joint Stock | |||||||||||||||||
| 1. | This type of company offers international entrepreneurs good access to local Cambodian markets while retaining full control of their business. |
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| 2. | Cambodian law requires a minimum of 7 shareholders for incorporation. | ||||||||||||||||
| 3. | The minimum issued capital is 100 million riels at a par value per share of at least 10,000 Riels. For capital contributions in cash, the par value of the shares must be at least 25% paid-in upon incorporation with the shares been fully paid-up within a period of three years. For non-cash contributions, payment of issued capital must be fully paid upon incorporation, and can be sold after 2 years of ownership. Remaining capital must be paid within 3 years. |
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| 4. | The Board of Directors must be comprised of at least three directors who must be chosen from among the shareholders of the company. The Board of Directors must be comprised of at least three directors who must be chosen from among the shareholders of the company. |
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| 5. | The Cambodian government encourages 100% foreign investment in projects using the latest technologies, as well as export-orientated projects. | ||||||||||||||||
| 6. | The Cambodian government recently abolished its double pricing system, whereby foreign-invested companies were required to pay higher statutory fees than Cambodian-invested companies. | ||||||||||||||||
| 7. | The Cambodian government offers tax incentives to joint stock companies, including temporary tax holidays for some projects. If foreign investors reinvest their distributed profits, they are entitled to a refund of any profit tax already paid in respect to the amount of profit reinvested. | ||||||||||||||||
| 8. | There is an exemption from duties when importing i) materials imported as the fixed assets of a company (e.g. machinery, manufacturing equipment etc); and ii) raw materials imported to be used in the production of export-orientated goods. | ||||||||||||||||
| 9. | A joint stock company requires a minimum of one shareholder and one director. | ||||||||||||||||
| 10. | Cambodia joined the World Trade Organisation (WTO) in January 2007, under which it is obliged to protect the intellectual property rights of foreign investors. | ||||||||||||||||
| 11. | Healy Consultants can open a corporate bank account in Cambodia. | ||||||||||||||||
| 12. | Healy Consultants can help clients obtain Cambodia residence visas for expatriate staff. | ||||||||||||||||
| Healy Consultants fees for an Cambodia Joint stock | |||||||||||||||||
Our fees for a joint stock company in Year 1 range from US$11,000 to US$21,000 depending on the corporate structure chosen and the range of professional services required from Healy Consultants. These fees include i) government License fees ii) virtual office fees iii) corporate bank account opening and iv) residence and employment visas. |
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| Contact Us | |||||||||||||||||
For more information on an Cambodian Joint stock, please email  or telephone us at (+65) 6735 0120. |
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