How to Start a Foreign-Owned Business in Cambodia: A Step-by-Step Guide
Starting a foreign-owned business in Cambodia offers promising returns, especially in sectors like energy, trade, and infrastructure. With the support of the Cambodia Investment Law 2025 and strategic positioning within ASEAN, investors can access regional opportunities with ease. This guide aligns with other key areas including business setup strategies, property investment hotspots, and the country’s modernizing infrastructure.
When you first land in Phnom Penh, the energy is unmistakable. Tuk-tuks zip past gleaming high-rises, tech startups and family-owned noodle shops coexist on the same street, and Khmer and English blend seamlessly in business conversation. For many foreign investors, this is where their Cambodian dream begins.
You’ve done your homework. You know that Cambodia allows 100% foreign ownership in most sectors. Its corporate tax is attractively low, the middle class is growing, and trade agreements like RCEP and Everything But Arms (EBA)open doors across Asia and Europe. So, you’re ready—but what does it actually take to get started?
Step 1: Choosing the Right Structure
First, you sit down with a local consultant. They walk you through your options:
A Private Limited Company, giving you full ownership and operational control.
A Branch Office if you’re expanding from overseas.
Or a Representative Office, ideal for research and brand visibility but not for sales.
You decide on a Private Limited Company—it’s the safest bet for long-term control and credibility.
Step 2: Reserving the Company Name
Next, you log into Cambodia’s Online Business Registration (OBR) Portal. Naming your company isn’t just a formality—it’s your first impression. After checking availability and making sure the name aligns with your industry, you submit. Within three days, your company name is locked in.
Step 3: Dealing with the Bureaucracy—Efficiently
Now comes the paperwork marathon—but this is Cambodia in 2025, and the processes have streamlined dramatically.
You register with the Ministry of Commerce, then move on to the General Department of Taxation for your tax ID and VAT. Provincial authorities approve your physical location, and if you’re in a specialized field like construction or energy, relevant ministries step in.
The entire registration process takes about 2 to 4 weeks and costs roughly $700–$1,500, depending on your sector.
Step 4: Finding Your Business Home
You explore office spaces in Phnom Penh’s bustling BKK district. Leasing an address is mandatory—you’ll need to submit a signed lease, along with photos of your company signage.
Instead of tying yourself to a long-term lease, you opt for a modern co-working hub. It’s affordable, startup-friendly, and—best of all—has coffee on tap.
Step 5: Opening a Bank Account
With your official documents in hand, you head to ABA Bank. The staff is helpful, the service bilingual, and you open your corporate bank account within a few days. Your capital injection—between $1,000 and $10,000—is deposited. You’re officially in business.
Step 6: Building Your Team
Soon, you’re ready to hire. Employment contracts are drafted in Khmer and English, and you register for the National Social Security Fund (NSSF).
Labor laws are straightforward: fair wages, proper hours, insurance—all of which your legal consultant keeps you on track with. You’re not just building a business; you’re contributing to Cambodia’s workforce development.
A Few Realities to Keep in Mind
You can’t own land directly, but long-term leases and joint ventures offer workarounds. Some industries still require Cambodian majority ownership or prior government approval.
Taxes? They’re unavoidable—but manageable with a savvy accountant who knows Cambodian law. As one investor puts it, “If you stay compliant, Cambodia rewards you.”
Success in Cambodia Means Playing the Long Game
You discover that success in Cambodia isn’t just about business plans and balance sheets. It’s about relationships—with government officials, landlords, suppliers, and your Khmer team.
You join EuroCham and later attend an AmCham networking event, where introductions lead to your first major client. Bit by bit, you become a part of the ecosystem.
Your Cambodia Business Checklist
| Step | Task | Time Required |
|---|---|---|
| 1 | Choose your business type | 1 day |
| 2 | Reserve your company name | 3–5 days |
| 3 | Complete government registration | 2–4 weeks |
| 4 | Secure business location | 1 week |
| 5 | Open corporate bank account | 3–7 days |
| 6 | Hire staff and register with NSSF | Ongoing |
Final Thoughts: Why Cambodia?
By mid-year, your Cambodian operations are thriving. You’re not just chasing profit—you’re helping build something meaningful in one of Southeast Asia’s most promising frontiers. The path wasn’t without hurdles, but your persistence, preparation, and partnerships paid off.
Welcome to Cambodia. You’re officially in business.
Want Help Starting Your Business?
We help foreign investors navigate Cambodia’s business environment.
Contact us today for a free consultation:
📧 info@vichetruon.com
🌐 www.vichetruon.com/contact
