Well, are you planning to start your very own business in the lands of Cambodia? Then, you will be able to be a part of a developing nation on its path to success. Plus, the Law on Commercial Enterprises, passed on April 26, 2005, also makes it easy for foreigners to start their business ventures in the country.
However, the process for this starts with you filling out a Cambodia visa application specifically made for operating businesses.
That being said, even though the process may look simple in the beginning there is a whole new world that awaits you. And being unaware of these things will it tough for you to successfully open a business in Cambodia. So, if you take our word for it, then it is best to be aware of these things before you start.
Understanding the types of businesses that a foreigner can start in Cambodia
Well, you need to understand the types of businesses that you can start before you start the Cambodia visa application process. This way you will have a clear plan for the rest of the process. Some of the main types of businesses that you can start in the country are;
1. Sole proprietorship:
This is the kind that is owned by one single person. This is why most foreigners tend to choose this after they get a Cambodia visa for business.
2. Partnership:
Many foreigners tend to start a partnership business with another foreigner or a Cambodian in the country. This helps in dividing the roles and responsibilities, thus making it easier for both.
3. Branch office:
This business entity is the same as its foreign parent company. For this, a company owner opens a branch of their already established company and takes all responsibilities for its debts and obligations.
4. Public limited company:
A foreign resident can easily open a public limited company in the country by complying with the Cambodian International Financial Reporting Standards. They will just be required to have at least 2 shareholders and 3 directors. That being said, it should kept in mind that a foreigner still cannot own land in the country.
How to start a business in Cambodia as a foreigner
There are a few things that all foreigners need to have before they proceed to start a business in Cambodia. Arranging for these beforehand ensures that you do not have to face any difficulty when you start your venture. Some of these things are;
1. Get a Visa:
The process of starting a business in Cambodia starts with you getting a Cambodia visa for Business. This is the most important piece of document in the entire thing and without this, you will not be able to start your business. So, remember to get a Cambodia EB Visa. This is renewed after every 3, 6, or 12 months, but allows you just a single entry.
Process to get a Cambodia Business Visa
- Have a passport and a scanned copy of your photograph. (The specifications of the photograph are mentioned on the Cambodian website.)
- Provide documents like proof of registration of the company.
- Fill out the entire Cambodia visa application form.
- Pay the fees through MasterCard, Visa card, or other government-certified methods.
- Download and print a copy of the EB Visa certificate from the official website.
2. Get an Employment Contract:
An employment contract is a must for all business owners. This helps in securing the business in case of any uncertain situations. There are mainly three main types of contracts issued by Cambodia, they are Fixed Duration Contract (FDC), or Specific Duration Contract (SDC), and Undetermined or Unfixed Duration Contract (UDC). But overall, any kind of signed contract is just valid for 2 years, after which it should be renewed again.
3. Company registration:
Getting your company registered is the first step in creating its identity. So, this is a must, this will also let you have a registration number that is unique to your company. Start the process by creating a user account on the Cambodia Data Exchange, and select the category under which your business falls.
Then, reserve a name for it, and fill out an application by providing proper documents and payment. After that, you will have to wait for a certain time to get your registration certificate as the application gets approved.
4. Tax Registration:
Just like in other countries, owning a company in Cambodia also requires one to pay a certain amount of tax. Some of the types of taxes that you would have to pay are; Corporate Income Tax, Withholding Tax, Value-Added Tax, and others. Moreover, you will also have to provide your Taxpayer’s Identification Number when you get a tax registration.
5. Open a Bank Account:
Opening a corporate bank account is a must for all businesses. You are also required to provide proof to the Department of Taxation in Cambodia. Keep this in mind, that all of this should be carried out within the time frame of 15 days.
6. Articles of Incorporation:
This is a form of certification that is a must for all companies. This helps in outlining the structure of the company and the daily operations that are carried out in it. This is issued by the Ministry of Commerce and everything is minutely checked in the application. So, avoid making any possible errors and check thoroughly.
7. Get an agent:
An agent makes it easy for you to comply with the rules and regulations of Cambodia. So, remember to appoint a registered Cambodian agent who has a clear understanding of all legal aspects. They are the ones who will act as the point of contact and receive and convey any important details to you.
8. Lease a property:
Leasing a property is a must, otherwise, you will not have a place to set up your business. You will be required to sign up a long-term lease with a Cambodian landowner that can last from 15 to 99 years. You are required to provide a few important documents for this. Basically, these things help in proving your cause behind leasing the property.
Ready to get a Cambodia visa for Business to start your venture?
Starting a business in Cambodia as a foreigner can look complicated. However, with a little understanding of the process, you can really make this easy. You will just have to fill out the Cambodia visa application form and get it accepted, marking the start of the process. After that, you will be allowed to enter the country to carry out the rest of the process.
Just remember to get all the documents and certificates. Plus, in case you face any difficulty in getting a business visa then you can also get in touch with Cambodia’s government website for visa application.
Visit our home-page for more information
