Cambodia has emerged as one of Southeast Asia’s most attractive destinations for foreign investment. With its strategic location within ASEAN, liberal foreign ownership rules, competitive labor costs, and a government increasingly focused on ease of doing business, Cambodia offers significant opportunities for international entrepreneurs and companies looking to expand into emerging markets.
However, while Cambodia is business-friendly, foreign business registration in Cambodia still requires a clear understanding of local laws, procedures, compliance obligations, and strategic choices. This comprehensive guide explains everything foreign investors need to know—from legal structures and ownership rules to registration steps, costs, taxes, and common pitfalls—so you can start your business with confidence and clarity.
Whether you are a startup founder, SME owner, or multinational investor, this article will help you navigate Cambodia’s business landscape efficiently and legally.
Understanding Foreign Business Registration in Cambodia
What Is a Foreign Business Under Cambodian Law?
Under Cambodia’s Law on Commercial Enterprises, a foreign business is any company or legal entity established under foreign law that conducts business activities within Cambodia. Once a foreign entity engages in commercial operations—such as signing contracts, hiring employees, renting offices, or generating income—it must comply with Cambodian registration and regulatory requirements.
Foreign businesses operating in Cambodia are required to:
- Register with the Ministry of Commerce (MoC)
- Obtain tax registration with the General Department of Taxation (GDT)
- Register with the Ministry of Labor and Vocational Training (MLVT)
- Comply with sector-specific licensing, if applicable
Cambodia’s legal framework is relatively transparent compared to many emerging markets, and recent digitalization—particularly through the Online Business Registration (OBR) system—has significantly simplified the process for foreign investors.
READ MORE: Cambodia’s Economic Outlook 2025: Slowing Growth Amid Global and Domestic Pressures
Why Cambodia Is Attractive for Foreign Investors
Before diving into the registration process, it is important to understand why Cambodia continues to attract foreign businesses across sectors such as manufacturing, tourism, logistics, technology, agriculture, and professional services.
Key Advantages of Doing Business in Cambodia
- 100% foreign ownership permitted in most sectors
- No restrictions on profit repatriation
- USD widely accepted alongside the Cambodian riel
- Young, growing workforce with competitive labor costs
- Strategic access to ASEAN markets
- Investment incentives under the Law on Investment
These advantages make Cambodia particularly appealing for companies seeking a cost-effective regional base or access to fast-growing domestic and export markets.
Types of Business Structures Available to Foreigners in Cambodia
Choosing the correct business structure is one of the most important decisions foreign investors will make. Each structure comes with different legal, tax, and operational implications.
1. Subsidiary Company (Foreign-Owned Company)
A subsidiary is a Cambodian-incorporated company that is wholly or majority owned by a foreign parent or foreign individuals. It is the most common structure for long-term business operations.
Key characteristics:
- Separate legal entity from its shareholders
- Can conduct full commercial activities
- Eligible for investment incentives
- Limited liability for shareholders
Best for:
- Long-term investments
- Revenue-generating businesses
- Companies hiring local and foreign staff
This structure is typically registered as a Private Limited Company (PLC) and is the preferred option for most foreign investors.
2. Branch Office
A branch office is an extension of a foreign parent company and does not have a separate legal personality under Cambodian law.
Key characteristics:
- Can engage in revenue-generating activities
- Parent company bears full liability
- Taxed as a resident entity in Cambodia
Best for:
- Companies testing the Cambodian market
- Firms that want operational presence without forming a new legal entity
3. Representative Office (RO)
A representative office is limited to non-commercial activities and cannot generate income in Cambodia.
Permitted activities include:
- Market research
- Liaison with partners or customers
- Promotion of the parent company
Not permitted:
- Issuing invoices
- Signing commercial contracts
- Engaging in profit-making activities
Best for:
- Market entry research
- Brand presence without revenue operations
Comparison of Business Structures
| Structure | Can Earn Revenue | Legal Entity | Liability | Common Use |
|---|---|---|---|---|
| Subsidiary | Yes | Yes | Limited | Full operations |
| Branch Office | Yes | No | Parent liable | Market expansion |
| Representative Office | No | No | Parent liable | Market research |
Can Foreigners Own 100% of a Company in Cambodia?
Foreign Ownership Rules Explained
One of Cambodia’s strongest selling points is its liberal foreign ownership regime. In most industries, foreigners can own 100% of a Cambodian company without requiring a local partner.
Sectors Open to Full Foreign Ownership
- Manufacturing
- Technology and IT services
- Consulting and professional services
- Hospitality and tourism
- Trading and export-oriented businesses
Restricted or Regulated Sectors
Some sectors are restricted or subject to special conditions, including:
- Land ownership (foreigners cannot directly own land)
- Natural resource exploitation
- Certain public services
Foreign investors commonly address land restrictions through long-term leases or legal holding structures rather than ownership.
Step-by-Step Process for Foreign Business Registration in Cambodia
Step 1: Choose the Appropriate Business Structure
Before registration, investors must decide whether to establish:
- A subsidiary
- A branch office
- A representative office
This decision affects taxation, liability, and long-term scalability.
Step 2: Reserve a Company Name
Company name reservation is completed through Cambodia’s Online Business Registration (OBR) portal.
Requirements:
- Unique company name
- Name must not infringe trademarks or existing businesses
Step 3: Register with the Ministry of Commerce (MoC)
Registration with the MoC officially establishes the company.
Documents required:
- Articles of Incorporation
- Company address
- Shareholder and director details
- Identification documents
Once approved, the company receives a Certificate of Incorporation.
Step 4: Tax Registration with the General Department of Taxation
After MoC registration, businesses must register for tax.
Key registrations include:
- Tax Identification Number (TIN)
- VAT registration (if applicable)
- Patent tax
Step 5: Register with the Ministry of Labor (MLVT)
All businesses employing staff must register with the MLVT.
Requirements include:
- Employment contracts
- Labor compliance documentation
- Registration of foreign employees
Step 6: Open a Corporate Bank Account
A corporate bank account is required for:
- Capital deposit
- Salary payments
- Tax compliance
Banks may require proof of business registration and minimum capital deposits.
Step 7: Obtain Sector-Specific Licenses (If Required)
Certain industries require additional approvals, such as:
- Tourism licenses
- Education permits
- Financial services approvals
Minimum Capital Requirements for Foreign Businesses in Cambodia
Legal vs Practical Capital Requirements
The legal minimum capital for registering a company is KHR 4 million (approximately USD 1,000). However, in practice:
- Banks may expect higher deposits
- Certain sectors require higher capital thresholds
- Adequate capitalization improves credibility
Costs and Timeline for Foreign Business Registration
Estimated Timeline
- Name reservation: 1–3 days
- MoC registration: 5–10 working days
- Tax and labor registration: 5–10 working days
Total timeframe: Approximately 2–4 weeks
Estimated Costs
- Government registration fees
- Professional service fees (optional)
- Licensing fees (if applicable)
Taxation for Foreign-Owned Companies in Cambodia
Understanding Cambodia’s tax system is critical for long-term compliance.
Key Taxes Applicable
- Corporate Income Tax (CIT): Generally 20%
- Value-Added Tax (VAT): 10%
- Withholding Tax: Applies to certain payments
- Salary Tax: Progressive rates for employees
Foreign businesses must file monthly and annual tax returns.
READ MORE: Cambodia’s Exports Soar 14% to $27.37 Billion, Driven by US Market Surge
Hiring Foreign Employees and Work Permit Requirements
Foreign Employment Rules
- Companies must observe foreign employee quotas
- Each foreign employee requires:
- Work permit
- Employment card
Non-compliance can result in fines or business disruptions.
Investment Incentives and Qualified Investment Projects (QIPs)
Cambodia offers generous incentives under the Law on Investment.
QIP Benefits May Include
- Corporate tax holidays
- Import duty exemptions
- Special investment guarantees
QIPs are administered by the Council for the Development of Cambodia (CDC).
Common Mistakes Foreign Investors Should Avoid
Top Pitfalls
- Choosing the wrong business structure
- Underestimating tax and labor compliance
- Operating without proper licenses
- Ignoring work permit requirements
- Using informal nominee arrangements
Avoiding these mistakes saves time, money, and legal risk.
Frequently Asked Questions (FAQs)
How long does it take to register a foreign company in Cambodia?
Typically 2–4 weeks, depending on documentation and licensing requirements.
Can a foreigner be the sole director of a Cambodian company?
Yes. There are no nationality or residency requirements for directors.
Do I need to live in Cambodia to register a company?
No, but a registered local address is required.
Is Cambodia suitable for startups?
Yes, particularly in manufacturing, services, tourism, and digital sectors.
READ MORE: Cambodia’s Revised Growth Outlook for 2025 and Structural Reforms
Conclusion: Is Cambodia the Right Market for Your Business?
Cambodia offers one of the most accessible environments for foreign business registration in Southeast Asia. With full foreign ownership, simplified registration processes, competitive costs, and growing market potential, the country presents compelling opportunities for international investors.
However, success depends on choosing the right business structure, understanding compliance obligations, and planning for long-term growth. With proper preparation and professional guidance, foreign investors can establish a strong and sustainable presence in Cambodia.
Call to Action
If you are considering registering a foreign business in Cambodia, now is the time to take action. Consult with qualified legal, tax, or business registration professionals to ensure your company is set up correctly, compliant, and positioned for success.
👉 Start your Cambodia business journey today—and build with confidence in one of ASEAN’s fastest-growing markets.
People Also Ask
Can foreigners register a company in Cambodia?
Yes, foreigners can legally register and fully own a company in Cambodia. In most sectors, 100% foreign ownership is permitted without the need for a local partner.
How long does it take to register a foreign business in Cambodia?
Foreign business registration in Cambodia typically takes 2 to 4 weeks, depending on documentation completeness, business structure, and licensing requirements.
What is the minimum capital to register a company in Cambodia?
The legal minimum capital requirement is KHR 4 million (around USD 1,000), though higher capital may be required in practice by banks or specific industries.
Can a foreigner be the director of a Cambodian company?
Yes, Cambodia does not impose nationality or residency restrictions on company directors. A foreigner can be the sole director of a Cambodian company.
Do foreign business owners need to live in Cambodia?
No, foreign owners do not need to reside in Cambodia, but the company must have a registered local address.
What taxes do foreign-owned companies pay in Cambodia?
Foreign-owned companies are subject to:
- Corporate Income Tax (generally 20%)
- Value-Added Tax (10%)
- Withholding tax (if applicable)
- Monthly and annual tax filings
What business structure is best for foreign investors in Cambodia?
A subsidiary (foreign-owned company) is the most common and flexible structure for foreign investors, as it allows full commercial activities and limits liability.
Are there investment incentives for foreign businesses in Cambodia?
Yes. Eligible businesses can apply for Qualified Investment Project (QIP) status, which may provide tax holidays, duty exemptions, and investment guarantees.
Reference Sources
Official Cambodian Government Sources
- Ministry of Commerce (MoC) – Online Business Registration
- https://www.businessregistration.moc.gov.kh
Primary official portal for company name reservation and business registration.
- https://www.businessregistration.moc.gov.kh
- Law on Commercial Enterprises (English PDF)
- https://www.businessregistration.moc.gov.kh/wp-content/uploads/2017/08/Law-Commercial-Enterprises-En1.pdf
Core legal framework governing company formation, branches, and representative offices.
- https://www.businessregistration.moc.gov.kh/wp-content/uploads/2017/08/Law-Commercial-Enterprises-En1.pdf
- General Department of Taxation (GDT)
- https://www.tax.gov.kh
Official source for corporate tax, VAT, withholding tax, and compliance obligations.
- https://www.tax.gov.kh
- Ministry of Labor and Vocational Training (MLVT)
- https://www.mlvt.gov.kh
Labor registration, work permits, and employment regulations.
- https://www.mlvt.gov.kh
- Council for the Development of Cambodia (CDC)
- https://www.cdc.gov.kh
Investment incentives, Qualified Investment Projects (QIPs), and foreign investment policy.
- https://www.cdc.gov.kh
Investment & Legal Framework Sources
- Law on Investment of the Kingdom of Cambodia
- https://www.cdc.gov.kh/laws-and-regulations
Defines foreign investment protections, incentives, and guarantees.
- https://www.cdc.gov.kh/laws-and-regulations
- ASEAN Briefing – Business & Investment in Cambodia
- https://www.aseanbriefing.com
Authoritative regional analysis on company registration, capital requirements, and compliance.
- https://www.aseanbriefing.com
Professional & Advisory Sources (Highly Cited)
- KPMG Cambodia – Investing in Cambodia Guide
- https://assets.kpmg.com/content/dam/kpmg/kh/pdf/publication/2022/kpmg-investing-in-cambodia-2022-and-beyond.pdf
Detailed professional guide covering tax, legal, and investment environment.
- https://assets.kpmg.com/content/dam/kpmg/kh/pdf/publication/2022/kpmg-investing-in-cambodia-2022-and-beyond.pdf
- PwC Cambodia – Doing Business in Cambodia
- https://www.pwc.com/kh/en/publications.html
Corporate tax, legal obligations, and foreign investor guidance.
- https://www.pwc.com/kh/en/publications.html
- Emerhub – Cambodia Company Registration Guide
- https://emerhub.com/cambodia/how-to-register-a-business-in-cambodia/
Clear explanations of procedures, timelines, and costs.
- https://emerhub.com/cambodia/how-to-register-a-business-in-cambodia/
Legal Commentary & Comparative Analysis
- HG.org – Foreign Business & Investment Law in Cambodia
- https://www.hg.org/legal-articles/update-on-investment-law-in-cambodia-61947
Legal commentary and updates on foreign investment rules.
- https://www.hg.org/legal-articles/update-on-investment-law-in-cambodia-61947
- The Better Cambodia – Business & Investment Guides
- https://thebettercambodia.com
Local economic and business insights frequently cited by investors.
- https://thebettercambodia.com
International & Economic Context (Optional but Strong for Authority)
- World Bank – Cambodia Country Data
- https://www.worldbank.org/en/country/cambodia
Macroeconomic indicators and investment climate data.
- https://www.worldbank.org/en/country/cambodia
- Asian Development Bank (ADB) – Cambodia
- https://www.adb.org/countries/cambodia/main
Economic development and private sector environment.
- https://www.adb.org/countries/cambodia/main