Starting and running a business in Phnom Penh can also be challenging, especially if you are not familiar with the legal procedures, regulations, taxes, incentives, or support services that are available for businesses in Phnom Penh. Therefore, it is important to be aware of the government resources that can help you establish, operate, and grow your business in Phnom Penh.
There are various types of government resources that you can access in Phnom Penh, depending on your needs, goals, and industry. Some of the most useful and relevant ones are:
- Business registration: This is the process of obtaining a legal identity and status for your business in Cambodia. It is required for all types of businesses, such as sole proprietorships, partnerships, limited liability companies, or corporations. Business registration can help you protect your business name and brand, comply with the laws and regulations, access financial services and markets, and benefit from tax incentives and exemptions. You can register your business online through the Information Technology Platform (ITP) launched by the Ministry of Economy and Finance (MEF) in June. The ITP enables seamless registration through a faster, more economical, and more convenient process. You can also register your business offline at the Department of Business Registration or the Provincial Department of Commerce.
- Tax registration: This is the process of obtaining a tax identification number (TIN) and a value-added tax (VAT) number for your business in Cambodia. It is required for all types of businesses that have an annual turnover of more than 250 million riels (about $62,500) or that import or export goods or services. Tax registration can help you comply with the tax laws and regulations, file tax returns and payments, claim tax credits or refunds, and benefit from tax incentives or exemptions. You can register your tax online through the E-Tax Service launched by the General Department of Taxation (GDT) in January 2019. The E-Tax Service enables online filing and payment of taxes through a secure and user-friendly system. You can also register your tax offline at the GDT or the Provincial Tax Branch.
- Business licenses: These are the permits or certificates that authorize your business to operate in a specific sector or activity in Cambodia. They are required for some types of businesses that involve public health, safety, environment, or quality standards, such as food production, tourism, construction, manufacturing, or education. Business licenses can help you comply with the industry-specific laws and regulations, ensure the quality and safety of your products or services, and enhance your reputation and credibility. You can apply for some business licenses online through the ITP or the E-Licensing System launched by the Ministry of Industry, Science, Technology, and Innovation (MISTI) in July 2020. The E-Licensing System enables online application and issuance of licenses for small and medium enterprises (SMEs) in the industrial and handicraft sectors. You can also apply for other business licenses offline at the relevant ministries or departments.
- Business support services: These are the programs or initiatives that provide assistance or guidance to businesses in Cambodia. They aim to enhance the capacity, competitiveness, innovation, and sustainability of businesses, especially SMEs. They offer various types of services, such as training, mentoring, consulting, financing, marketing, networking, or incubation. Some of the most active government agencies that provide business support services in Phnom Penh are:
- The General Directorate of Small and Medium Enterprises and Handicraft (GDSMEH) under MISTI: This is the main government agency that oversees and coordinates the development and promotion of SMEs and handicrafts in Cambodia. It provides various services to SMEs and handicrafts, such as policy formulation, regulation enforcement, information dissemination, technical assistance, product certification, market access, trade facilitation, innovation support, cluster development, and entrepreneurship education.
- The SME Bank of Cambodia: This is a state-owned bank that was established in March 2020 to provide financial services to SMEs in Cambodia. It aims to improve the access to finance for SMEs, especially those in priority sectors, such as agriculture, agro-industry, manufacturing, tourism, digital technology, green economy, and creative industry. It offers various products to SMEs, such as loans, deposits, guarantees, leasing, and payment services.
- The Entrepreneurship Development Fund (EDF): This is a fund that was established in December 2019 to provide financing and technical support to startups and innovative SMEs in Cambodia. It aims to foster the entrepreneurial ecosystem and culture in Cambodia, and to support the development of innovative products or services that can solve social or environmental problems. It offers various services to startups and innovative SMEs, such as grants, equity, loans, mentoring, coaching, training, networking, and incubation.
These are some of the government resources that you can access in Phnom Penh to start, run, and grow your business. By using these resources, you can obtain the necessary legal documents, comply with the relevant laws and regulations, access financial services and markets, and benefit from various incentives and support services.
List of References:
: [Information Technology Platform (ITP)]
: [Department of Business Registration]
: [General Department of Taxation (GDT)]
: [E-Tax Service]
: [Provincial Tax Branch]
: Business Licenses – KHMER SME
: [E-Licensing System]
: Laws & Regulations – KHMER SME
: [General Directorate of Small and Medium Enterprises and Handicraft (GDSMEH)]
: [SME Bank of Cambodia]
: [Entrepreneurship Development Fund (EDF)]
