How Can You Own a Business In Cambodia?

This is a step-by-step tutorial on how to create a small or medium business in Cambodia, including what to do and where to start.

Step 1 – Set a Business Location.

The first step in starting a business is to identify a good site, as good location is the key to your success. Furthermore, before you can start your own firm, you must first find a suitable place. You must first identify a location before applying for any license, registering with the appropriate Ministry, or applying for tax certificates. To register with the ministry, you must have a physical address. Find a reliable real estate firm that will seek for a property that meets your specific needs. Reputable agents, unlike many fly-by-night outfits, can perform the essential due diligence on your behalf and save you a lot of time and aggravation. They'll speed up your home search and assist you in negotiating the best terms for the area of your choosing.

Step 2 – Obtain a Lease or a Sale Purchase Agreement.

The real estate company will assist you in finding the ideal location and negotiating the best price for you, as well as facilitating the lease or sale of the property you pick. They'll operate as a go-between when it comes to drafting the necessary documents, contract signing, and payment agreements. This is a hassle-free method of securing your preferred site. You have the choice of renting a space or purchasing it outright. If you decide to purchase the property outright, you will need to understand the complexities of foreign ownership as well as the several types of property titles.

Step 3 – Open a Cambodian Bank Account.

The next step is to open a bank account in your or your company's name once you've established a business location. This bank account is used to pay the government for taxes and registrations.

Step 4 – Find a Lawyer or Accountant to secure the Ministry documents.

Reputable real estate firms can also suggest you to the best professionals for securing Ministry documents and establishing business ownership. You'll need assistance with the following: The Ministry of Commerce, the Ministry of Tax Administration, and the Ministry of Procurement and Finance are all places where you can register your firm. You'll need to have already secured your business space and established a local bank account for this. You may additionally need to register with the Ministry of your business's relevant department, depending on your business. If it serves the tourism industry, for example, you'll require a permit from the Ministry of Tourism. Work Permits from the Ministry of Labor are required. Keep in mind that foreign-owned businesses are only allowed to employ a maximum of 10% non-locals in their workforce.

Step 5 – Hire your staff.

You can only hire up to 10% foreigners in your workforce. You must also obtain work permits for overseas employees and guarantee that they have the necessary business or e-visas. Obtaining the necessary licences for a new business might take anywhere from three to six months. The government, on the other hand, is less stringent in that your business can start operating while you wait for the permits. There is no time lost waiting for the required documentation.

Source: ips-cambodia