For foreign businesspeople that are eager about operating in Cambodia, the country offers several advantages. It is the part of WTO agreement. The country enjoys the perks of the ‘All but Weapons’ program and the Most Favored Country title under the Generalized Scheme of Choices. The nation has one of Southeast Asia’s minimum corporation tax rates.
The exportation of goods including clothing and farm commodities, leisure, real estate expansion, trade, and technology all play a significant role in the economy of the nation. Therefore, it is recommended that you choose one of these choices if you intend to buy an already operating firm in Cambodia.
Purchase a business in Cambodia; to-do list
Ensure you choose the ideal corporation for you if you’re determined on the concept of purchasing a firm. The simplest method to position yourself for success is to purchase a company that you are enthusiastic about growing and improving. Passion alone, however, is insufficient; you must also consider your expertise and your knowledge of the right queries to ask when purchasing a firm.
Here is a checklist for purchasing an established business:
- Get to know the different kinds of businesses you can buy.
You must first choose the kind of firm structure you want to purchase in the nation. To do this, you must research Cambodia’s available trade structure alternatives.
sole proprietorship
In Cambodia, the sole owner is one person-owned and -operated. All money and profits are owned by the sole proprietor. The sole proprietorship, nevertheless, is not a distinct legal body, and any obligations incurred will be the owner’s responsibility.
General partnership
A general partnership is an agreement between two or more people who pool their resources, talents, or expertise to run a profitable business. A general partnership is legally distinct from the partners.
Limited partnership
A limited partnership is an agreement between a few general partners, who are the only ones with the authority to manage and bind the partnership.
Limited liability company
In Cambodia, the most popular type of corporate structure is a limited liability company (LLC). It includes:
- Private limited companies with two to thirty stakeholders;
- single-person private limited companies with one shareholder and one director; and
- public limited companies with two or more shareholders are all included.
Representative office
Additionally, you may buy a local branch of a worldwide corporation. You must remember that the representative office is not permitted to conduct trade, render services, buy, sell, produce, process, or build in Cambodia.
Branch office
Branches may participate in production, refining, and building as well as economic operations such as item reselling.
- Search for businesses that are for sale
You must look for the companies that are up for sale in the nation once you have decided what kind of firm you want to buy. On the following websites, you could discover several companies for sale:
- Understand why the business is on sale
There are many factors a company owner might decide to sell their company, even things as basic as a seemingly harmless lifestyle decision like retirement. Or there could be a more concerning explanation, such as a basic issue with the company. You should fully understand the reasons behind the firms’ existing owners’ failure before making a purchase decision.
Requirements for buying a business in Cambodia
Before purchasing a firm in Cambodia, you should gather and examine a variety of business paperwork, files, contracts, and reports, ideally with the assistance of your lawyer and accountant. When looking to purchase a firm, the following are some essential documents:
Business license and permits
You must provide the officials with your personal and contact information, two passport-sized pictures, a clear criminal history, and the registration cost to receive a business license. Your purchasing process would be much simpler once you have the permit.
Organizational papers
It’s possible that there won’t be any formal “starting” documents if the company you’re buying is a sole trader or partnership. However, an organization’s basic papers will be on record with the government if it is a recognized commercial concern, such as an LLC or corporation. You can either obtain them from the owner or the authorities directly.
Amendment in MOA
You must submit the request to the authorities to make a few changes to the MOA of the business. You can change the name of the owner or director or make a few changes in share capital.
Letter of intent
When both parties have reached an understanding regarding a cost range and the specific corporate properties, the seller will submit a letter of intent, or LOI, to the purchaser as the process of acquiring a firm moves forward. The seller’s letter of intent should contain the cost suggestion as well as the contract terms of the firm transaction. The authorities must receive this letter of intent.
