Everything You Need to Know About Starting a Company in Cambodia

How to Establish a Company in Cambodia

General Information for Setting Up and Managing a Business in Cambodia

When creating a company in Cambodia, the number one rule is: “A solid project and a solid contract.”

Beyond foreign investors who come to open a hotel, restaurant, bar, retail shop, or any type of business, Cambodia also attracts many digital nomads and freelancers who choose the country for its highly favorable working and living conditions.

Why Start a Company in Cambodia?

Cambodia is one of the easiest countries in Southeast Asia for establishing a foreign-owned company.

One of its main advantages is the ability for investors to create a 100% foreign-owned business, with no requirement for a local partner (except for certain regulated sectors).

Key Advantages:

• No mandatory local partner (except specific activities)
• Streamlined company registration procedures
• Low setup and operating costs
• Simple long-term stay and residency processes
• Competitive corporate tax rates
• US dollar widely used nationwide
• Low personal income tax
• Free repatriation of profits and capital (with minimal restrictions)
• Stable political environment

Legal Structures for Companies in Cambodia

Several legal forms are available for setting up a company. Under Cambodian law, companies are registered for 99 years.

Legal Forms

Administrative Requirements for a Company in Cambodia

Licenses, Patents & Mandatory Registrations

These requirements vary depending on your business activity and the city where your company will operate.

A number of licenses and official documents are mandatory, including:

• Business License
• Patent Tax Certificate
• Tourism License (if applicable)
• Signage Tax
• Fire Safety Authorization
• Quota Registration
• NSSF (Health & Pension) Registration

Additional notes:

• Licenses and authorizations are issued by different ministries.
• Your company name must be validated by the Ministry of Commerce to ensure it is unique.
• Licenses and documents must be requested in a specific order.
• Some documents are required to open a corporate bank account.
• Many licenses must be renewed annually, while the company itself is registered for 99 years.

Business Center Cambodia offers a full registration package for company incorporation.

Legal Structure & Taxation in Cambodia

The taxation of your company depends primarily on the legal form chosen at incorporation making the choice of structure a critical step.

Taxation Overview

Tax obligations depend on various factors: business sector, legal status, company size, turnover, investments, etc.

• General principles include:
• All companies must register with the tax administration and obtain a Patent Tax Certificate.
• A 10% VAT applies to most businesses and must be paid monthly.
• Salary tax ranges from 0% to 20%, with lower salaries (around $320) taxed at 0%.
• As a general reference, companies can expect total taxation to be approximately 20% of turnover in Cambodia.

(Full details available in the Private Members Area.)

Key points:

• All companies in Cambodia must register with the Ministry of Taxes and apply for a Patent Tax Certificate (business tax license).
• A 10% VAT applies to all companies and must be paid monthly.
• Salary tax ranges from 0% to 20%, with 0% applied to low salaries (around USD 320).
• As a general guideline, businesses should consider approximately 20% of annual revenue for tax purposes.

• More detailed information is available on the Members Private Website.

Cost of Setting Up a Company in Cambodia

The cost of creating a company in Cambodia varies depending on the legal structure, the business sector, and the number of licenses required. For the first year, expect a total cost ranging from USD 1,200 to USD 4,000.

For full details, please refer to the Members Private Website.

Business Center Cambodia’s Expert Insight

Remember the first two conditions: “a good project & a good contract.”

Not every project is immediately viable in Cambodia, but many can become feasible with the right adjustments.

To determine this, you need a solid understanding of the local market:

• Which business sectors are trending or in demand
• Which cities will best receive your project
• What location will offer the highest potential

After finding the right place and securing a solid contract, the final step is to define the legal and administrative framework for creating the company. This phase is crucial because it determines:

• What the company is allowed to do
• Taxes and regulatory obligations
• Required licenses and associated costs

License fees can vary drastically. Sometimes from double to triple, even for something as simple as adding one extra table in a restaurant. This is why expert guidance is essential to optimize administrative costs before creating your company in Cambodia.