Business Ownership in the Kingdom of Wonder
How can you own a Business in Cambodia?
The big question remains, how do you set-up a business in Cambodia? What do you need to do to acquire or put up your own business? This is a quick step by step guide of what to do and where to start when planning to build a small or medium enterprise in the Kingdom.
Step 1 – Secure a Business Location
You already know the type of business that you want. You have the skills required to manage the business and train the staff. To own a business, the first thing you need is to find a suitable location because GOOD LOCATION IS THE KEY to your success. Additionally, business location is the primary requirement before you can establish your own business. Before applying for any license, registering with the needed Ministry or applying for tax certificates, you need to find a location first. You need to have an address to register at the ministry. Find a reputable real estate company that will look for a location with your specific requirements. Unlike many fly-by-night companies, reputable agents can do the necessary due diligence for you and save you a lot of headaches. They will expedite the property search and help negotiate the best conditions for the location of your choice.
Step 2 – Get a Lease or Sell Purchase Agreement on your office or business location of your choice.
In much the same way that the real estate company will help you find a perfect location and negotiate the price for you, they will also facilitate the lease or sale of the property that you choose. They will act as the middleman in drawing up the needed documents, contract signing, and payment agreements. This is a hassle-free way of securing the location of your choice. You have the option of renting a space or buying the actual property. If you decide to buy the property outright, you need to learn the intricacies of foreign ownership and the types of property titles.
Step 3 – Open a Cambodian Bank Account.
Once you’ve established a business location, the next step is to open a Bank Account under you or your company’s name. Tax and registration payments to the government are processed thru this bank account.
Step 4 – Find a Lawyer or Accountant to secure the Ministry documents.
Location plays a key role in the success of your business
Reputable real estate companies can also refer you to the best people to secure your Ministry documents and establish Business Ownership. You will need help in processing the following: Register your business with the Ministry of Commerce, Ministry of Tax Administration and the Ministry of Procurement and Finance. For this, you will need to have already secured your business location and set up a local bank account. Depending on your business, you may also need to register with the Ministry of your business’ specific department. For example, if it caters to the tourism sector you need the permit from the Ministry of Tourism. Secure Work Permits from the Ministry of Labor. Keep in mind that for foreign-owned companies, you can only employ a maximum of 10% of non-locals in your workforce.
Step 5 – Hire your staff
Again, you can only employ up to 10% of foreigners in your staff. You also need to secure work permits for foreign staff and ensure that they have the appropriate business or e-visa. The whole process of getting the appropriate permits for a new business can take as much as 3-6 months. However, the government is not as strict in the sense that your business can already operate while waiting for the permits. No time is wasted in waiting for the needed documents.