As one of Southeast Asia’s fastest-growing economies, Cambodia is attracting increasing foreign interest in sectors like manufacturing, renewable energy, agriculture, real estate, and digital services. With a new investment law in place, a young workforce, and improving infrastructure, Cambodia presents an exciting market entry opportunity—but one that requires the right strategy.

Whether you're a startup, SME, or large enterprise, this step-by-step guide will walk you through everything you need to know to set up a business in Cambodia legally and effectively in 2025.

Step 1: Choose the Right Business Structure

The most common legal entities in Cambodia for foreign investors are:

• Private Limited Company (PLC): Ideal for most businesses. Allows up to 100% foreign ownership in most sectors.
• Branch Office: An extension of a foreign parent company. No separate legal personality.
• Representative Office: Cannot earn revenue; used for market research or promotion.
• Joint Venture: Common in restricted sectors or where local partnership adds strategic value.

Pro Tip: A PLC offers the most flexibility and legal protection for long-term operations in Cambodia.

Step 2: Reserve Company Name and Register with the Ministry of Commerce

All companies must be registered with the Ministry of Commerce (MOC). The process includes:

1. Online name reservation through the MOC business registration portal.
2. Filing Articles of Incorporation, business objectives, shareholder details, and registered address.
3. Obtaining a Certificate of Incorporation.

Timeline: Typically 7–14 business days if documents are complete and no errors are found.

Step 3: Tax Registration with the General Department of Taxation (GDT)

After incorporation, register your business with the GDT to obtain a Tax Identification Number (TIN), VAT certificate (if applicable), and patent tax certificate. This is mandatory to begin operations.

Documents required:

• Certificate of Incorporation
• Office lease agreement
• Photos of business location (interior and exterior)
• Company seal

Ensure that your accounting system complies with Cambodia’s Tax Law and the Cambodian Financial Reporting Standards (CFRS).

Step 4: Secure Licenses and Sectoral Permits (If Applicable)

Depending on your business activity, you may need additional licenses or approvals from relevant authorities such as:

• Ministry of Industry, Science, Technology & Innovation (manufacturing)
• Council for the Development of Cambodia (CDC) for QIP registration
• Ministry of Tourism (hotels, resorts)
• Ministry of Information (media and broadcasting)

Note: Registering as a Qualified Investment Project (QIP) through CDC may grant tax holidays and import duty exemptions.

Step 5: Open a Corporate Bank Account

Choose a local or international bank operating in Cambodia to open a corporate bank account. You’ll need:

• Company registration documents
• Tax certificates
• Board resolution approving the account (for multi-director setups)

Some of the top business banks include ABA Bank, ACLEDA, Canadia Bank, and foreign branches like UOB or Maybank.

Step 6: Hire and Comply with Labor Law

Foreign investors must comply with Cambodia’s Labor Law, including:

• Employee contracts (written for over 15-day employment)
• Registration with the Ministry of Labor
• Employee handbooks and internal regulations (for 8+ employees)
• Work permits for foreign staff

Wages, severance, and insurance contributions must meet national standards. It's recommended to consult a labor law specialist to remain compliant.

Step 7: Develop a Market Entry Strategy

Beyond the legal setup, consider your go-to-market strategy:

• Target Sector: Know where Cambodia is growing—green energy, logistics, e-commerce, agro-industry, and tourism are booming.
• Location: Phnom Penh for corporate HQ, Sihanoukville for trade/port access, Siem Reap and Kampot for tourism and lifestyle ventures.
• Local Partners: Build strong relationships with Cambodian stakeholders, distributors, and regulators.
• Digital Tools: Cambodia has high internet/mobile penetration—leverage e-commerce, digital banking, and online marketing.

Key Considerations for Foreign Investors

• 100% foreign ownership is allowed in most sectors—except land and a few sensitive industries.
• Corporate tax is 20% (standard rate); QIPs may receive tax holidays up to 9 years.
• Language: Legal documents in Khmer, but English is widely used in business.
• Legal support is highly recommended—mistakes in filings can cause delays or penalties.

Conclusion

Cambodia is no longer just an emerging market—it’s a high-potential destination for foreign direct investment with improving regulations, infrastructure, and international trade access. Setting up a business here requires strategic planning, legal compliance, and local insight.

If you’re ready to establish your presence in Cambodia, our consultancy offers end-to-end services including business registration, investment advisory, licensing, and compliance. Contact us today for a free consultation.