BENEFITS OF STARTING
A BUSINESS IN CAMBODIA
There are many benefits to doing business in Cambodia. With unprecedented growth, an expanding population, and a bustling construction segment, it is easy to see why business opportunities are flourishing in Cambodia.
We understand that it can be hard to understand the inherent benefits of starting a business in Cambodia without an intimate knowledge of the country. It can be intimidating and confusing. At LocaWize we can help you clearly identify your core competencies and exploit them. Click through to find out more about the benefits of starting a business in Cambodia.Read More
The benefits of doing business in Cambodia are plentiful. With one of the fastest growing economies in Southeast Asia, Cambodia is ranked 10th in the world in terms of GDP growth. A sustained annual growth rate of 7% means investment in the Kingdom has never been higher.
That GDP growth is also widely predicted to continue in the coming years. For businesses looking to expand, or for clients looking to establish a Cambodian business, there has never been a better time to do so and LocaWize makes the perfect partner. We provide consultancy advice with regard to all aspects of doing business in Cambodia.
A huge incentive for businesses over a certain size, engaging in Foreign Direct Investment, is preferential market access, as well as the possibility of tax and duty exemption. Eligible businesses are called Qualified Investment Projects (QPI) and must be registered with the Council of the Development of Cambodia (CDC).
LocaWize can assess a client’s business and ascertain whether they are eligible to apply for these benefits, while our team can ensure that the process of applying is painless.
Another great benefit of doing business in Cambodia is the relatively low tax rate. Compared to neighbouring countries, the Cambodian tax regime is lenient, corporate tax rates are also low, while filing requirements have recently been streamlined.
Along with the significant economic benefits of doing business in Cambodia, there is also a geographical benefit. In terms of geographical positioning, Cambodia is perfectly situated to take advantage of regional markets, and in terms of access, Cambodia benefits from a uniquely beneficial location.
LocaWize can advise and provide support for clients looking to take advantage of the significant opportunities Cambodia presents for doing business in a wide range of industries.
Establishing and running a successful business in Cambodia requires patience and perseverance. Have no fear though; LocaWize is invested in the success of our clients at every step.
PROBLEMS WITH DOING
BUSINESS IN CAMBODIA
Cambodia’s business climate and economic environment has developed in leaps and bounds over the last twenty years. Although many foreigners may want to take advantage of this new development and prosperity, there are still many possible pitfalls and problems.
Factoring in potential problems for your business is crucial to ensure success, click through to read more about the hazards of doing business in Cambodia and how LocaWize can help you to combat them.Read More
Unfortunately, Cambodia still suffers from a ‘perception gap’. The dated images of Cambodia being a place where unofficial payments are paid as part of the price of doing business are somewhat overblown.
Many processes can still be quite slow, relative to processing times in other countries; as a result business owners have been known to pay an unofficial fee to expedite the process. At LocaWize we do not endorse this manner of doing business in Cambodia or anywhere else. Instead, we provide our clients with realistic timelines in adherence with all local laws. LocaWize only works through officially certified channels and guarantees full legal compliance.
Another potential problem for foreigners looking to establish a business in Cambodia can be the issues associated with local culture and language. Language barriers and cultural differences can create major headaches for people who are unfamiliar with them. At LocaWize, our translations are of the very highest quality and we can consult with clients with regard to local holidays, customs, and social norms.
An often neglected pitfall for foreigners doing business in Cambodia is the difficulty of domestic travel. Moving around the country for business has the potential to create issues for those not familiar with the Kingdom. Different areas of the country can flood or roads can deteriorate with little notice. With the correct guidance and our professional understanding of different events that are likely to cause delays, LocaWize can ensure that business trips are easy and problem free.
THE PROCESS OF SETTING UP
A BUSINESS IN CAMBODIA
Setting up a business in Cambodia can be tricky; even more so if a client is from outside the country. Thankfully LocaWize is here to help streamline the process and make it as painless as possible. Click through for more detailed information on the process of setting up a business in Cambodia, and to see how LocaWize can ensure that clients are fully compliant.Read More
The first step in the process of setting up a business in Cambodia is to confirm the legal category of the client’s business for the purpose of business registration at the Ministry of Commerce (MOC). There are three possible categories, sole proprietorship, a partnership or a limited liability company. The pre-requisites for registration are, a company name must be reserved, the company must have a registered address, and clients must have all individual and company information.
For a limited liability company, a corporate bank account is required with one of the three authorized banks in Cambodia. Clients are required to put their business capital, at a minimum of $1000 in this account. Once the client has obtained a bank statement as deposit evidence, these details are to be submitted to the General Department of Taxation (GDT) to proceed in the business registration procedure.
Once the client’s application has been approved by the MOC, the client will have two weeks to go to the GDT to register their business. For the purposes of tax registration clients are required to bring all the related documentation to the GDT.
Upon completion of the business registration clients will receive, taxpayer identification number, a patent tax certificate, a VAT certificate, a tax ID card, and a notification letter that specifies the start date of monthly tax submissions, as well as other tax obligations.
Before starting your operations in Cambodia, it is necessary to submit a declaration, in written form, to the Ministry of Labour and Vocational Training. In this process the following steps are required, announcement of company launch and registration, a staff declaration, an internal regulation development and filing the employment contract and registration with the National Social Security Fund.
The final step in establishing a business in Cambodia is to receive an inspection by an official Labour inspector. LocaWize provide services and solutions to ease the difficulty and timeframe of this process. Navigating this process can be stressful and time consuming, with LocaWize this process is streamlined under one roof, helping to provide peace of mind to our clients.
At LocaWize we have plenty of hints, tips and useful information
on how to run a successful business in Cambodia. Click through to
find out the Do’s and Don’ts of doing business in Cambodia.
When embarking on a business journey in a foreign country, the number one business tip has to be, Make sure you get the help you need from local experts you can trust.
LocaWize knows the potential pitfalls for new investors, we can ensure that issues are fully explained and risks and benefits are clear. Our ‘on the ground knowledge’ of running a business in Cambodia is excellent. We pass the benefits of that excellence on to our clients.
Clients using LocaWize’s translation services can quickly overcome the hurdles of language barriers. By using LocaWize for local assistance, our clients ensure their official transactions run smoothly and all transactions are equitable and fair.
Another one of our top tips, Do your research.
A consultation with LocaWize before making any major investment decisions means clients are properly informed about the state of their industry, the market situation, as well as their responsibilities with regard to tax, employment and accounting law in Cambodia.
Our last tip for doing business in Cambodia is, Make sure your business offers value to the local market/consumer.
When a client establishes a business in Cambodia they must provide value to their target demographic, with LocaWize’s consultation, clients can better understand the culture and people of the Kingdom. Understanding the market is a key step in the process of creating a profitable company anywhere, and Cambodia is no exception.