Legal Forms for Companies in Cambodia
Explore the right legal structure for your Cambodian business
Discover the Different Legal Structures for Your Business in Cambodia
Choosing the right legal form is crucial when creating a company in Cambodia. The choice affects not only the setup costs but also monthly taxes and annual obligations, which can vary significantly depending on the structure.
Available Legal Forms
Cambodia recognizes several company types under its legislation, valid for up to 99 years. Becoming a BCC member ensures full guidance for your project: assessing its viability, choosing the right city, selecting the appropriate legal form, understanding the steps, and estimating costs.
Sole Proprietorship
A single-owner business with full responsibility over profits and registration with the Ministry of Commerce. Comparable to a “micro-enterprise” in France.
Public Limited Liability Company (PLC)
Can issue public shares, requires a minimum of 1,000 shares at 4,000 Riel each (~$1 USD). Between 2 and 30 shareholders, fully liable only up to capital contributed. Foreign ownership up to 100%, except when land purchases are involved.
Limited Liability Company (LLC)
Similar to a SARL, with 2–30 shareholders. Liability limited to capital contributions; foreign ownership allowed unless land is involved.
Single Member Private Limited Company
One shareholder, same liability rules as an LLC. Similar to a single-member company in France.
Partnership
Agreement between two or more entities to combine ownership, knowledge, and markets. Partners are jointly responsible.
Branch Office
Authorized by the parent company to sell, buy, or provide services locally; can manufacture, process, or construct.
Representative Office
Can market products, connect businesses, and enter contracts, but cannot conduct commerce.
Subsidiary
Requires at least 51% foreign ownership. Has a legal personality separate from the parent company.
Controlled Activities
Some sectors require specific legal forms or licenses from relevant ministries:
- Insurance licenses - Ministry of Economy and Finance
- Mineral licenses - Ministry of Industry, Mines, and Energy
- Oil & Gas licenses - Cambodian National Petroleum Authority
- Tourism licenses - Ministry of Tourism
- Telecommunications licenses - Ministry of Posts and Telecommunications
BCC Cambodia Advice
The choice of legal form depends on your activity. For example, real estate businesses require at least 51% local partners. When multiple options exist, consider long-term growth, fiscal obligations, and taxes.