Procedure for Company Formation in Cambodia | Forum

Cambodia offers several compelling reasons for businesses to establish operations within its borders, making it an increasingly attractive destination for investment. The process of company formation in Cambodia is relatively straightforward, designed to encourage both local and foreign investment. The first step is to choose a business name, which must be unique and registered with the Ministry of Commerce (MoC) to ensure it is not already in use. Next, the company structure must be determined, with options such as a private limited company (LLC) or a branch office for foreign entities. Foreign investors can own up to 100% of a Cambodian company, depending on the industry. After deciding the structure, the Articles of Incorporation and Memorandum of Association must be prepared, outlining the company’s objectives, shareholder details, and governance.

The next step involves registering with the Ministry of Commerce and obtaining a Certificate of Incorporation, which officially recognizes the company as a legal entity. Following this, the company must register with the General Department of Taxation to obtain a Tax Identification Number (TIN) and value-added tax (VAT) registration if applicable. Additionally, the company must open a local bank account and deposit the required minimum capital, which varies depending on the business type. Finally, companies with employees must register with the National Social Security Fund (NSSF) for social security contributions. This process ensures full legal compliance and enables smooth business operations in Cambodia.