Cambodia has been attracting foreign investors and entrepreneurs who are interested in expanding their businesses or starting new ventures in the country. However, one of the common questions that foreign investors may have is whether they can own 100% of a company in Cambodia.
The answer to this question is yes, foreign investors can own 100% of a company in Cambodia, with some exceptions. According to the Law on Investment (LoI) of 1994, which is the main legal framework for foreign direct investment (FDI) in Cambodia, foreign investors can establish and operate any type of business entity in Cambodia, such as a sole proprietorship, a partnership, a limited liability company, a branch office, or a representative office. Foreign investors can also enjoy various incentives and guarantees from the government, such as tax holidays, tax exemptions, tax credits, duty-free access, or special economic zone benefits. Foreign investors are also protected from nationalization, price fixing, or currency restrictions. Foreign investors are also allowed to hire foreign nationals as managers, technicians, or skilled workers if the qualifications and/or expertise are not available in Cambodia.
The only exception to the 100% foreign ownership rule is land ownership. According to the Constitution of Cambodia, only Cambodian citizens can own land in Cambodia. Therefore, foreign investors cannot buy or own land in Cambodia directly. However, there are some ways that foreign investors can access land in Cambodia indirectly, such as through long-term leases (up to 50 years), land concessions (up to 99 years), or joint ventures with Cambodian partners (up to 49% share). Foreign investors can also own strata titles of condominium properties located above the ground floor since 2010.
Therefore, foreign investors who are interested in doing business in Cambodia can own 100% of a company in Cambodia, except for land ownership. This makes Cambodia one of the most open and liberal countries for FDI in the region. However, foreign investors should also be aware of the challenges and risks that may arise from doing business in Cambodia, such as the legal and regulatory environment, the market opportunities and competition, the economic and political situation, the tax system and incentives, the labor market and workforce, the infrastructure and logistics, the culture and etiquette, the currency and banking, the legal system and dispute resolution, and the social responsibility and sustainability.
To register and operate a company in Cambodia, foreign investors need to follow the procedures and requirements set by the relevant authorities, such as the Ministry of Commerce (MOC), the General Department of Taxation (GDT), the Council for the Development of Cambodia (CDC), and other ministries or departments depending on the industry or activity of the company.
Foreign investors can also seek the help and advice of professional service providers, such as lawyers, accountants, consultants, or agents, who can assist them with the legal, financial, and administrative aspects of their business.
List of References:
: LEGAL FRAMEWORK FOR FOREIGN DIRECT INVESTMENT
: Foreign company registration options in Cambodia
