Company formation in Cambodia

Cambodia is the leading potential market in Southeast Asia. With an open policy for investors, it is easy for businesses to set up a company in Cambodia without many barriers in terms of legal policies.

Why setting up a company in Cambodia?

In recent years, investing and opening a business in Cambodia has become one of the popular choices of businesses intending to expand their business. Why should invest in Cambodia also becomes a question that many potential investors are wondering. There are 3 big reasons why Cambodia attracts foreign investors more than other countries in Southeast Asia:

– Fast growing economy with minimalist visa regime and favorable investment environment. Unlike neighboring countries, Cambodia has a simpler visa regime and a much more favorable investment environment, creating really great opportunities for foreign investors and entrepreneurs.

– Cambodia has more open regulations for foreign investors. Unlike Thailand, where foreigners can only own 49% of their companies, in Cambodia you are the complete owner of 100% of the shares. Cambodia has the same restriction as in Myanmar – foreigners cannot own real estate. However, foreigners have the right to lease land and real estate in Cambodia for 99 years.

– The year-round hot climate attracts a large number of foreign tourists to Cambodia. Cambodia is a small country in the south of the Indochina peninsula, famous for its beautiful landscapes, bays, and beautiful forests.

What field should invest in Cambodia?

Although not an economically developed country, Cambodia attracts foreign investors aiming for long-term and short-term profits in tourism, agriculture and clothing manufacturing, footwear. The most popular sectors of foreign investors are light industry, agricultural production, real estate purchase and construction, tourism industry, mining, timber, rubber and rubber and other sectors of the economy.

Investing in real estate in Cambodia is a very profitable investment option. Although Cambodian law does not allow foreign nationals to own land, you can purchase a piece of land in the Kingdom of Cambodia in the name of a company. In addition to tourism, Cambodia’s economy has prospered by exporting clothes, shoes, textiles, rubber, timber, tobacco, rice and seafood.

Each of these industries is actively and steadily growing, providing foreign investors with excellent opportunities to invest and profit from sales. Another industry that is also attracting investment is mining and exporting minerals. Despite the fact that most of the country is covered with forests, the country is rich in reserves of tin, iron, copper, zinc, gold, silver and other precious metals. Cambodia also exports precious and semi-precious stones. Every year, investments in Cambodia are increasing, which allows the country to develop at a rapid pace. However, with the language and legal barriers, before choosing the scope of investment in Cambodia, the potential investor needs to consult an expert or service company, so as not only for advice on profitable economic sector for investments, but also helps to conduct investment transactions in accordance with Cambodian law. List of Documents to set up a business in Cambodia Expanding business in the land of temples is a trend in recent years of businesses.

To make it more convenient to invest abroad, K&M would like to inform our customers the list of documents to establish a business in Cambodia as follows:

– Company name

– Contributing members list

– Expected charter capital

– Permanent address (of all capital contributors)

– 04 photos of 4X6 and 04 photos of 3.5×4.5 (of all capital contributors) Confirmation of temporary absence of legal representative in Cambodia

– Receipt of real estate tax payment of the landlord located the company’s headquarters

– Lease contract for the office where the company’s head office is located and/or other proofs (notarized or certified by the local government)

– Check the line of business Passport copy of the front and back of the entry date to Cambodia of all company members – Company establishment information form

– Application for establishment of a company

– Confirmation of opening an account at Bank of Cambodia (Minimum balance of $1000, to supplement tax declaration documents)

– Corporate charter Standard time to complete company registration in Cambodia

– Prepare documents and submit to sign: 01 day from the date the customer completes the required list

– Receive business license: 05 days from the date of submitting the application to the Ministry of Commerce of Cambodia

– Certificate of license tax & Certificate of VAT number: 25 days from the date of submission and scan photo at the General Department of Taxation of Cambodia With many years of experience in the Cambodian market and performed by Khmer lawyers, K&M can help clients prepare a full set of documents to set up a business in Cambodia from just 5 working days.

In addition, we provide free support for drafting a bilingual company charter to maximize the protection of our customers when doing business and investing in Cambodia. Corporate Income Tax in Cambodia The standard corporate tax rate in Cambodia is 20%. Oil and gas and mining activities are subject to a tax rate of 30%.

Insurance is the preferential tax rate of 5%. Personal Income Tax (PIT) in Cambodia Progressive personal income tax rates from 0% – 20% are as follows:

– For non-residents, only wages originating from Cambodia are subject to Cambodia Tax, regardless of where wages are paid. The tax rate for non-residents is 20%.

– For residents, including Cambodians and individuals in Cambodia for more than 182 days in any 12-month period, taxed at the progressive rate as mentioned above. Employers must declare and fulfill their monthly tax obligations no later than the 15th of the following month.

K&M provides services that Enterprises need when investing and doing business abroad, including:

 

Business establishment & Legal advice

Accounting services

Administrative service

Customs service

Recruiting and Personnel Management

Marketing consulting and operation

Trademark Protection & Trade Promotion