Business entities in Cambodia in 2022

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Healy Consultants will assist our Clients with incorporating the optimal Cambodia business entity for their business needs. Foreign investors willing to start a company in Cambodia are currently usually setting up limited liability companies as public limited companies can only be used to establish a bank or a financial institution. Alternatively, foreign corporations can also register a branch in Cambodia, or a representative office if they only want to conduct noncommercial operations.

The Cambodia limited liability company (private limited company)

  • Establishing a Cambodia private limited company can be done with only i) a paid up capital of at least US$1,000 (KHR4 million) ii) two shareholders and iii) one director, who all can be foreigners and do not need to be ordinarily residing in the country before or after Cambodia company setup. The authorities can however request higher capital requirements for complex project and selected industries;
  • The Cambodia LLC will also need to have i) a corporate bank account in the country, on which the paid-up capital must be deposited prior to Cambodia business setup ii) real office space and a registered agent as well as iii) a local name in Khmer language. Healy Consultants will assist our Clients to comply with these three requirements;
  • After incorporation, all Cambodia LLC must file annual returns and annual tax returns and register for VAT. Although there are no clear-cut rules in Cambodia regarding audit requirements, small businesses are usually exempted.

The Cambodia joint-stock corporation (public limited company)

  • Formation of a Cambodia JSC follows procedures similar to those applicable to Cambodia company setup. The main differences between these types of business entities are the Cambodia PLC can freely trade in shares and may have more than 30 shareholders;
  • Only banks, financial institutions and companies listed on the Phnom Penh Stock Exchange are currently allowed to be setup as PLCs. Kindly note that only two corporations have been listed on the local stock exchange since its creation in 2010.

The Cambodia branch

In accordance with Cambodia Law on Commercial Enterprises, foreign companies can open a branch office in Cambodia to do business in the country and/or run productive operations, provided they appoint a representative. Branches must have the same name as their foreign company.

The Cambodia representative office

In accordance with Cambodia Law on Commercial Enterprises, foreign companies can also open a representative office in Cambodia. Representative offices must have the same name as their foreign company and cannot conduct neither productive nor commercial operations.

Table of comparison between different Cambodia entities

  LLC Joint Venture PLC Branch Office Rep Office
How long to set the company up? 8 weeks 10 weeks 8 weeks 8 weeks 4 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks
Issued share capital required US$1,000 US$1,000 US$1,000 No No
Allowed to sign sales contracts with local Clients Yes Yes Yes Yes No
Allowed to invoice Cambodia Clients Yes Yes Yes Yes No
Corporate tax payable in Cambodia 20% 20% 20% 20% No
Corporate Bank Account Acleda bank Acleda bank Cathay United Bank (CUBC) BOC in Cambodia ANZ Royal Bank in Cambodia
Must rent office premises in Cambodia Yes Yes Yes Yes Yes
Allowed to import raw materials? Yes Yes Yes Yes No
Allows exporting goods? Yes Yes Yes Yes No
Can the entity hire expatriate staff in Cambodia? Yes Yes Yes Yes Yes
Do you visit Cambodia for company incorporation? No No No No No
Resident director required? No No No No No
Resident shareholder required? No No No No No
National shareholder required? No Yes No No No
Minimum number of directors 1 1 3 1 1
Minimum number of shareholders 2 2 2 No No
Resident company secretary required? Yes No No No No
Legal representative required? Yes Yes Yes Yes Yes
Tax registration certificate required Yes Yes Yes Yes Yes
Individual shareholders allowed Yes Yes No Yes Yes
Corporate shareholders allowed Yes Yes Yes Yes Yes
Corporate director(s) allowed No No No No No
Public register of shareholders and directors Yes Yes Yes Yes Yes
How long to get work permit approved 3-6 months 3-6 months 3-6 months 3-6 months 3-6 months
Statutory audit required Yes Yes Yes Yes Yes
Annual tax return to be submitted Yes Yes Yes Yes Yes
Access to DTA Yes Yes Yes Yes NA
Estimate of engagement costs US$7,960 US$7,960 US$7,960 US$9,460 US$9,460
Total Cambodia business setup costs in year 1 US$16,135 US$21,285 US$13,185 US$14,685 US$14,685
Subsequent annual costs (incl. accounting and tax fee) US$2,300 US$7,000 US$2,800 US$2,550 US$2,550
Sample Engagement Invoice View invoice PDF View invoice PDF View invoice PDF View invoice PDF View invoice PDF

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Contact us

For additional information on our business setup services in Cambodia, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon