Starting a Business in Cambodia: A Step-by-Step Guide for Foreigners
How to register and run a business in Cambodia: company structure, tax, banking and hiring.
We work regularly with buyers from Russia and the CIS, and the same questions come up every time: how to buy safely, how to sort out a visa, what ownership really costs and what yield you can actually expect. Here is a practical guide.
Choosing an Entity
Most foreign-owned businesses in Cambodia operate as a Private Limited Company (Ltd.) — Cambodia's LLC equivalent. It offers full foreign ownership in almost every sector, a straightforward compliance footprint, and clean tax treatment. Branch offices and representative offices exist but suit specialized use cases.
Formation Timeline
A new Ltd. is typically registered in three to six weeks: name reservation with the Ministry of Commerce, tax registration with the General Department of Taxation, patent tax payment, and, if hiring, Ministry of Labor and NSSF registration. Serviced legal packages typically bill USD 1,500–3,500 depending on complexity.
Tax Basics
Standard corporate income tax is 20%. VAT is 10% for businesses above the small-taxpayer threshold. Rental income and property transfers carry their own withholding tax obligations. A qualified investment project (QIP) approved by the CDC can waive tax on profits for up to nine years in eligible sectors.
Banking and Payments
Business accounts at ABA, ACLEDA, Wing and Prince have all become foreign-friendly in the last three years. Documentation is heavier than in the retail flow, but a properly incorporated Ltd. with a real office and a shareholders' passport pack usually opens in under two weeks.
Compliance Rhythm
Monthly tax filings, an annual patent tax renewal, an annual audit for larger companies, and quarterly labor filings if you have staff. None of it is difficult in isolation; the trick is not letting three months slip before you notice.
What to do next
If you are considering a purchase in Cambodia, start with two steps: (1) browse our current properties in the Listings section and (2) contact our team — we will work through your specific situation and save you weeks of searching.