The Law on Commercial Enterprises, which came into effect on June 19, 2005, regulates business law in Cambodia and establishes several corporate forms, including sole proprietorships, partnerships, private limited liability corporations, or public limited enterprises, as well as international firms. In the month of creation and no later than 15 days before the start of activities, investors must register the firm with the Ministry of Commerce. To make company registration for new firms easier, the Ministry of Commerce (MoC) introduced an online commercial registration platform on January 4, 2016.
Establishing an IT company in Cambodia
To establish your firm, you must first choose an available business entity in Cambodia. It could be an independent contractor, a partnership, a private or public limited liability company, or a foreign corporation. Next, choose the company’s officers. A public limited company must have at least three directors, whereas a private limited company must have at least one. The nationality of the firm directors is not subject to any restrictions. A single-member private limited company may be formed by one person and requires only two to thirty shareholders. The corporation’s articles of formation and registration with the local municipal office are both requirements for the operation of the company.
Incorporating a business via the business registration department
The business has to register on the Cambodia Data Exchange (CamDX) system run by the Ministry of Economy and Finance (MEF) through online registration services. You must first establish a user account, which involves providing your name, contact information, and personal data to register online. You must reserve a business name after choosing your preferred company type. You must input a suggested name in Khmer; the suggested names will be reviewed automatically. The name may also be registered in a different language, often English. The next step is to decide what kind of company to launch. KHR40,000 is required to reserve the business name. The name will be reserved after you have paid for it, making it impossible for another business to use the one you have suggested. You need to pay again to reserve the business name for an additional two weeks if you wish to prolong the reservation time. The next step is to choose your company operations using the Standard Industrial Classification (SIC) codes and submit the lease for the registered office as well as the necessary shareholder and director information. A minimum of KHR 4 million should be set aside as the company’s capital (USD 1,000). You will get the Certificate of Registration, which is available at the Department of Registration and issued online after the MOC has authorized the registration. The cost of registration is KHR 2,155,000. You may pay the registration cost online with ABA Pay or by credit/debit card.
You must comply with some post-registration requirements after successfully registering, such as collecting business seals, creating a corporate bank account, and registering with the National Social Security Fund.
Following business registration, you must get a corporate seal from a seal manufacturer. This seal must follow the MOC’s recommended format. The corporate seal will subsequently be registered by the MOC.
Have registration paperwork endorsed and stamped
The articles of incorporation and certificate of incorporation are documents that need stamping at the Department of Administration and General Affairs.
Registering for taxes
You must fill out the application from the General Department of Taxation on the registration service website to register for tax. Within 15 working days of tax registration, digital evidence of paid property taxes, enterprise property information, and bank account information are required.
Establishing a business bank account
The business must create a bank account and transfer the start-up money there. Then, within fifteen days of obtaining the certificate of incorporation, a bank statement demonstrating that the capital has been deposited must be uploaded to the online registration form.
Make a notification to the ministry of labor and vocational training
All businesses are required to file a written declaration to the Ministry of Labor and Vocational Training before beginning company activities. Companies with at least eight workers are required to establish internal policies that adapt to the basic requirements of the labor legislation, including hiring requirements, salary payment, benefits, work hours, health and safety precautions, and personal leave policies. After the firm is incorporated, the internal rules must be submitted within three months.
Register with the national social security fund
Employers must register with the National Social Security Fund if they have at least one employee (NSSF). The Registration of an Enterprise and Registration of Employees forms must be completed by the employer and submitted to the NSSF with all necessary supporting documentation.