Success tips when doing business in Cambodia in 2023
There are several points about setting up a business in Cambodia that our Client should be aware of:
- Entrepreneurs must prepare a substantial study of Cambodian markets. It should include i) an understanding of different market demands & changes ii) a strong feasibility study and iii) research on local competition;
- Always keep in mind the inadequate and time-consuming legal framework when dealing with the Cambodian Government;
- US dollar is widely used in Cambodia. Average rate is KHR 4,000 to US$1;
- Etiquette in Cambodia requires you to start a greeting with a bow, but the Western practice for shaking hands is accepted for foreigners;
- Good businessmen should always be aware of the collective thinking and hierarchy in Cambodia;
- If possible, business cards should include translated text in Khmer;
- Important aspect for business meetings in Cambodia is punctuality and respect for the highest ranked professional, who guides the conversation;
- “Saving face” in Cambodia is important for any formal relations;
- A way to make good impression in Cambodia is by giving a small gift, presented with the right hand only;
- Being on time in Cambodia proves you are reliable.
Interesting facts about Cambodia
- Economic growth in Cambodia is still going strong and the county’s GDP climbed more than 7% per year between 2010 and 2014 according to The World Bank;
- Located in Cambodia is the temple Angkor Watt, which is the largest religious complex in the world, build during the Khmer Empire rule in the 12th century;
- After agriculture, tourism in ranks second as Cambodian main source of income with 4.2 million visitors in 2013;
- Best temperature-wise months for visiting Cambodia are from December to April;
- Investment in Cambodia’s textile and garment industry has increased as Cambodia gained 40 new factories valued at US$239 million in the first half of 2012;
- Cambodian cuisine incorporates eating of insects, which is widely recognized by the UN’s Food and Agriculture Organization as a futuristic means of fighting hunger in the world;
- The country is considered “mostly unfree” by the Heritage Organization’s Index of Economic Freedom for 2015;
- With population of over 15 million people, Cambodia ranks as the 69th most populous country in the world;
- Cambodia not only has the lowest unemployment rate in the region, but also one of the lowest in the world, with 0.2% for 2012 according to The International Labour Organization;
- Official religion is Buddhism with 96% of the population;
- While the riel is the country’s predominant currency, Cambodia assimilated the US dollar and they can be used interchangeably;
- There is an underwater reserve of oil and gas located between Cambodia and Thailand, which according to The World Bank is the most attractive unexplored area in all Asia.
Frequently asked questions
Will there be restrictions in ownership if foreigners setup a Cambodia company?No. 100% foreign ownership is allowed if you wish to setup your business in Cambodia
What are the minimum capital requirements when incorporating a company in Cambodia?To successfully register both private and public limited liability companies, the minimum capital requirement is US$1,000.
What Cambodia company incorporation services can Healy Consultants offer my firm?
As Cambodia incorporation service providers, Healy Consultants will assist our Clients with i) company registration ii) business license registration iii) immigration solutions iv) employment strategies v) business banking solutions and vi) office rental requirements.
Our experts are Cambodia company incorporation specialists and will send our Clients weekly updates till engagement completion.
What are the different types of business entities in Cambodia?International entrepreneurs can setup i) Limited Liability Company ii) Public Limited Liability Company iii) Branch Office iv) Representative Office.
How many weeks does it take to start a Cambodia LLC?A Cambodia private limited liability company can be incorporated within 16 weeks.