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Starting a business in Cambodia : Guide

Staff Reporter | 12:05 AM |

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Cambodia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Deposit the legally required initial capital in a bank and obtain deposit evidence.1 dayno charge
2Check the uniqueness of the company name5 daysUSD 10
3Have an abstract of the company organization documents (bylaws, memorandum, and articles of association) published in a recognized public newspaper7 daysUSD 15
4Incorporate the company with the Commercial Register, maintained at the Office of the Clerk of the Commercial Court25 daysUSD 105
5Make a company seal1 dayUSD 15
6Have registration documents stamped and approved by Phnom Penh Tax Department3 daysUSD 49
7Register the company for VAT and patent at the Real Regime Tax Office13 daysUSD 390
8Notify the Ministry of Labor of the start of operations and hiring of employees30 daysUSD 250 (8-200 employees)
* 9Receive inspection from Labor Inspector1 day simultaneous with procedure 8Included in Procedure 8
* Takes place simultaneously with another procedure.