Phnom Penh is the capital and largest city of Cambodia, and a fast-growing and dynamic place that offers many opportunities for entrepreneurs and investors. Whether you want to start a digital business, a social enterprise, or a green business, Phnom Penh has something to suit your needs and preferences. However, before you dive into the market, you need to register your business with the relevant authorities and comply with the legal requirements. In this article, we will guide you through the steps and procedures of how to register a business in Phnom Penh.
Step 1: Choose your business type and name
The first step to register a business in Phnom Penh is to choose your business type and name. You can register your business as one of the following types:
- Sole proprietorship: A business owned and operated by one person, who is liable for all debts and obligations of the business.
- Partnership: A business owned and operated by two or more persons, who share the profits and losses of the business. There are two types of partnerships: general partnership and limited partnership.
- Private limited company: A business owned by one or more shareholders, who have limited liability for the debts and obligations of the company. The company has a separate legal personality from its owners and is managed by directors.
- Public limited company: A business owned by one or more shareholders, who have limited liability for the debts and obligations of the company. The company has a separate legal personality from its owners and is managed by directors. The company can raise capital by issuing shares to the public.
- Foreign company: A branch or a representative office of a foreign company that operates in Cambodia.
You can also choose your business name, which should be unique, distinctive, and not misleading or offensive. You can check the availability of your desired name on the website of the Ministry of Commerce (MoC), which is the authority that regulates business registration in Cambodia.
Step 2: Register your business online
The second step to register a business in Phnom Penh is to register your business online on the website of the MoC. You need to create an account as a registered user and fill in the required information and documents for your chosen business type. The information and documents may include:
- Proposed name
- Business activities
- Share par value
- Number of employees
- Addresses and contacts information
- Directors information
- Shareholders information
- Partner information
- Manager information
You also need to pay the required registration fee, which varies depending on your chosen business type. The fee can be paid online or at any branch of ACLEDA Bank. The fee ranges from $25 USD for a sole proprietorship to $1,400 USD for a public limited company.
Once you submit your application, it will be reviewed by the MoC within 10 working days. If your application is approved, you will receive a certificate of incorporation and a registration number for your business.
Step 3: Obtain other licenses and permits
The third step to register a business in Phnom Penh is to obtain other licenses and permits that may be required for your specific business activities. These licenses and permits may be issued by different ministries or authorities depending on the nature and scope of your business. Some examples are:
- Operating license on small and medium factory & handicraft: This license is issued by the Ministry of Industry, Science, Technology, and Innovation (MISTI) for businesses that engage in manufacturing or handicraft activities.
- License for the use of product certification mark: This license is issued by the Institute of Standards of Cambodia (ISC) for businesses that produce or sell products that meet certain quality standards.
- Tax registration for patent tax, VAT number, and transfer tax: This registration is done at the General Department of Taxation (GDT) or provincial tax branch for businesses that need to pay taxes on their income, value-added, or property.
- Location approval license: This license is obtained from the Phnom Penh Municipality for businesses that need to have their premises approved by the local authorities.
- Registration for opening enterprise, establishment ledger, payroll, and internal work rule: This registration is done at the Ministry of Labor and Vocational Training (MoLVT) or online for businesses that employ workers and need to comply with labor laws.
- Trademark registration: This registration is done at the Department of Intellectual Property of the MoC or provincial department of commerce for businesses that want to protect their brand name or logo.
- Tax permit on sign board: This permit is obtained from the GDT or provincial tax branch for businesses that want to display their sign board on their premises.
- Permit on sign board: This permit is obtained from the Phnom Penh Municipality for businesses that want to display their sign board on their premises.
You can find more information and details about these licenses and permits on the websites of the respective ministries or authorities.
Step 4: Start your business
The fourth and final step to register a business in Phnom Penh is to start your business and operate it legally and smoothly. You need to comply with the laws and regulations that apply to your business, such as paying taxes, filing returns, keeping records, etc. You also need to monitor the market conditions, customer preferences, legal changes, and economic indicators that may affect your business. You also need to be flexible and adaptable to the changing business environment and customer needs.
List of references:
• [1]: Ministry of Commerce Website
• [2]: Ministry of Industry, Science, Technology, and Innovation Website
• [3]: Institute of Standards of Cambodia Website
• [4]: General Department of Taxation Website
• [5]: Phnom Penh Municipality Website
• [6]: Ministry of Labor and Vocational Training Website
• [7]: Department of Intellectual Property Website
