Yes, foreigners can set up a business in Cambodia. The country has been actively encouraging foreign investment and has relatively straightforward procedures for establishing businesses. Here are the key points to consider when setting Can a foreigner set up a business in Cambodia:
1. Business Structures for Foreigners
- Sole Proprietorship: A foreigner can establish a sole proprietorship, but it requires the individual to have legal residence in Cambodia.
- Private Company in Cambodia ( CO.,LTD ): This is a popular option. A foreigner can own up to 100% of the business, but they need to comply with certain regulations like having a local partner in specific sectors (such as construction, media, etc.).
- Joint Venture: Foreigners may partner with local Cambodians to form a joint venture company.
- Branch Office: Foreigners can establish a branch office of a foreign company to conduct business activities in Cambodia.
2. Foreign Investment Law
- The Cambodian government has laws designed to promote foreign investment, and the country has been part of several international trade agreements, including the ASEAN Economic Community (AEC).
- Foreigners are generally allowed to own and control businesses in most sectors, except for a few restricted areas such as real estate (where foreign ownership is limited).
3. Requirements for Setting Up a Business
- Business License: You must obtain a business license from the Ministry of Commerce (MOC).
- Tax Registration: You’ll need to register with the General Department of Taxation to obtain a Tax Identification Number (TIN).
- Social Security Registration: If you hire employees, you must also register with the National Social Security Fund (NSSF).
- Opening a Bank Account: A corporate bank account is required for business transactions.
4. Legal and Regulatory Framework
- Cambodia’s legal framework is evolving, and foreign investors should ensure they comply with local labor, tax, and corporate regulations. Hiring a local lawyer or business consultant can be helpful.
5. Sector-Specific Restrictions
- There are certain sectors that may have restrictions or additional regulations on foreign ownership, such as in media, telecom, and natural resources.
6. Investment Incentives
- Cambodia offers various incentives for foreign investors, including tax breaks, particularly for investments in certain sectors like manufacturing, agriculture, and export businesses.
Overall, Cambodia offers a favorable environment for foreign business ownership, though it is crucial to be aware of the legal requirements and restrictions specific to your sector. Consulting with local experts is often recommended to ensure compliance and smooth business setup
