Professional Documents
Culture Documents
I N CAMB ODIA 2 0 17
European Chamber of Commerce in Cambodia
BUSINESS GUIDE
ADVOCACY | MARKET ENTRY | BUSINESS DEVELOPMENT | NETWORKING
EU RO P EA N C H A M B ER
O F CO M M ERC E I N C A M B O D I A
All rights reserved. This publication, and any form of copy of EuroCham Cambodia exists to facilitate European
this publication, may not be sold, re-sold, hired out or traded, business in Cambodia.
by any person or entity, without the prior written permission of
As the largest Western business network in Cambodia
EuroCham Cambodia.
with 290 members, we represent the voice of the
The information contained in this brochure is provided for European business community in dialogue with the Royal
information purposes only, and is not intended to constitute Government of Cambodia, we provide research and market
legal or tax advice. Legal and tax advice should be obtained from entry services, we go abroad to promote Cambodia as an
qualified counsel for all situations. investment destination, and we host popular networking
functions that foster a support network among European
companies. We particularly work with small and medium-
sized enterprises (SMEs) which make up the vast majority
of businesses that drive the economy.
info@eurocham-cambodia.org
eurocham-cambodia.org
This publication has been produced with the assistance of the
European Union. The contents of this publication are the sole
Eurocham Cambodia
responsibility of Eurocham Cambodia and can in no way be taken
to reflect the views of the European Union. eurocham-cambodia
1
Abou t this book CO N T EN T S 05
B EF O RE YO U A RRI V E
0 6. GOOD TO KNOW
38. TA XATI ON
Business guide:
Business Opportunities Cambodia 42. FI NA NC I NG
eurocham-cambodia.org/publications 48. H UMA N RE SOURC E S
Many photos in this guide were generously made possible by the photography
staff at the Khmer Times.
68. LI ST OF AC RONYMS
3
B EF O R E
YO U A R R I V E
GET TIby
Photo NG S TARTED
Sunny Merindo I N CAMBO DIA • E uroCham Bus ines s Guid e 20 17 B ef o re y o u a r r i v e | 5
“
L a n g ua g e
1. G O O D
Khmer is Cambodia’s official language
TO KNOW and the mother tongue of the majority of
the population. However, in urban areas
and within the business community, most
Ac c om o d ation Mon e y
For those staying only for a short period of Cambodia has a dual-currency system—in
time, Cambodia is well-represented on the addition to the Khmer Riel (KHR), United
most common international hotel booking States dollars (USD) are used and accepted
websites. Those seeking to settle in the nearly universally. Because the Riel is
country may consider hiring a letting or pegged to the US Dollar, the exchange rate
property agent. has stayed at roughly 4000KHR to 1USD for
over 10 years. Prices for goods and services
are generally displayed in Dollars, though
public services are always priced in Riel. As
Cambodia does not have any coin currency,
it is common to see cash transactions
made with a mixture of KHR and USD (for
example, a 2.50USD transaction may be
paid with 2USD and 2000KHR). International
ATMs are numerous in urban areas, though
withdrawal fees can be expensive; if you are
staying for an extended period it may be
worthwhile to open a local bank account.
a
th e
un
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B ef o re y o u a r r i v e | 9
S E T T I N G UP
START
HERE
Business registration requirements in Cambodia will be different ARE YOU INVESTING AS A “FOREIGN BUSINESS”?
(a business that has already been established outside of Cambodia)
depending on what type of company you are seeking to establish. Most
companies owned by a foreign parent company. Will the entity serve Representative
YES
only as a cost center? Office
NO
NO YES
NO YES NO YES
ST
MO ON
MM
CO
Limited Public
Sole General
Liability Liability
Proprietorship Partnership
Company Company
51%
entitled to a share of profits but who are must have at least three directors who are
Compared to a sole proprietorship or
only liable to the extent of the sum of elected by the shareholders for periods of
general partnership, registering an LLC
money or value of the property that they two years.
requires a few additional documents.
have agreed to contribute.
A Company Memorandum and Articles
Cambodia has a fledgling securities exchange,
of Association will be required when
the Cambodia Securities Exchange (CSX). A business is considered to have
registering at the Ministry of Commerce.
As of the end of 2016, the CSX had only
"Cambodian nationality" if it has
four listed companies. So far, the majority
of companies interested in listing have been a registered office in Cambodia
MOST COMMON state-owned, with some exceptions such
and 51% of shares are owned by
BUSINESS STRUCTURE as a Taiwanese garments manufacturer
and the privately-held Phnom Penh Special Cambodian legal persons.
Economic Zone. The CSX hopes to attract
01 02 03 04
D E P O SIT T H E L EG A L LY RES ERV E COM PAN Y N AM E REGI STE R W I TH : REGI STE R W I TH :
R EQ U IR E D INI T I A L C A PI TA L I N A MI NI STRY OF COMME RC E GE NE RA L D E PA RTME NT
BANK & O BTAIN DEPO S I T EV I DEN C E OF TA XATI ON
As a precondition of registering a business You must first check that your proposed Register online (encouraged) or at the Bring your Letter of Approval and Certificate
in Cambodia, companies must be able name for the company is not already taken Business Registration Department of the of Incorporation along with your company’s
to provide a bank statement certifying within Cambodia. The fastest way to do this Ministry of Commerce. You will need Memorandum and Articles of Association to
a deposit of a minimum of 4M KHR is within the new online business registration to provide a business name, business one of the General Department of Taxation's
(approx. 1,000 USD) at any authorized bank portal, though at time of publication this activities, intended number of employees, seven district branches so they can provide
within Cambodia. requires an ACLEDA bank account to business address and contact information, you with a TIN (Tax Identification Number).
make online payment. Applications can information about the Director(s), and
also be made at the Business Registration information about shares and shareholders. You will also need to register and pay a one-
Department of the Ministry of Commerce. time Registration Tax and make the first of
The fee for incorporating a Private Limited your company’s annual Patent Tax payments.
Officials from the Ministry are instructed to Company, including reservation of the company
reject any business registration applications name, is 1.72m KHR (approx. 430 USD) as
with names containing ‘Buddhist’ or of June 2016. The Ministry will review your
the names of some national heroes.
Additionally an officer may reject a name
that is obviously intended to mislead such
application within 3 weeks, and if accepted,
provide a Letter of Approval, Certificate of
Incorporation, and a company seal.
05
as “Koca-Cola”. Also note that the English
iteration of the name must phonetically REGI STE R W I TH :
resemble the Khmer version MI NI STRY OF L A BOR &
VOC ATI ONA L TRA I NI NG
In D ecem ber 2 0 1 5 th e M i n i s try of While this report saw Cambodia's ease of With the implementation of an online
Commerce launched an online business registering a company move up only 5 business registration system, the Ministry
registration portal; this paperless system places in comparison with other economies of Commerce has made it possible for
enables prospective businesses to search (from 185 to 180), the authors did note that entrepreneurs to navigate the business
for a company name, pay registration fees “Cambodia made starting a business easier registration process independently. For
online, and upload shareholder and board by simplifying company name checks, guidance on registering a standard business
of directors’ information. The previous streamlining tax registration and eliminating structure, please feel free to contact
system required representatives to physically the requirement to publish information on EuroCham Cambodia.
go to the Ministry to complete registration the new company’s incorporation in the
procedures. official gazette.” More complex types of business structure
may require specialized legal advice for
The online registration system was Overall, the 2016 edition of the report processes such as preparing Memorandum
developed by Foster Moore International, estimated that the entire process for of Association. Those unfamiliar with the
the same consultancy that developed a New creating a business in Cambodia (including system may encounter unexpected costs
Zealand online registry that the World Bank’s registration with tax and labor authorities) and delays without using outside assistance.
Doing Business 2016 report ranked number typically takes around 87 days and costs In these cases, we recommend hiring a
one in terms of speed of starting a business. approximately 795 USD. This is a marked qualified local representative to ensure that
improvement on the 2014 report which the registration process proceeds smoothly.
suggested values of 101 days and 1,325 USD. Our online directory contains a number of
reliable legal service providers.
Advisory services
Our online directory contains a number of
reliable legal service providers:
eurocham-cambodia.org/directory
PROOF
OF COMPANY
ADRESS During registration, you will need these If leasing a commercial property, be sure to obtain proof of ownership from your lessor. If you
items to verify your company address: are unable to obtain this document, or if you are only sub-leasing the property and unable
to contact the actual owner, this will make the registration process more difficult. You will
also need to obtain evidence of immovable property tax payment by the lessor as this may be
Ownership deeds of a property
required when registering with the General Department of Taxation.
held by a director
A lease agreement on a Businesses who do not require physical office space as part of their day-to-day operations, or
commercial property who are not ready to sign a lease agreement, nonetheless need to provide a valid company
address to complete the business registration process. "Virtual offices" are common in some
Immovable property tax
countries but typically not accepted in Cambodia; alternatively, consider sub-leasing a small
payment by the lessor
area within an office as an inexpensive solution.
Eu ro C h am Bu sin e ss Gu ide S et t i ng Up | 2 1
3. Q UA LIFIED
I N VES TMENT P r i m a r y B e n e f its Ad d ition al B e n e f its
Cambodia’s QIP scheme can provide considerable benefits Q How big is my investment project?
to some foreign investment projects, but not all. Applying for
the QIP scheme requires a substantial financial investment Depending on the specifics of your project, investors should
and may slow down an investment project since the QIP budget for around $6,000 to $10,000 for the entire QIP
license takes approximately three months to be granted. application process including legal fees, and official fees to
A successful QIP applicant also incurs stricter regulatory the Council for the Development of Cambodia. Smaller-scale
requirements such as the obligation to use an external investors, including those above the minimum $100,000
financial auditor and a requirement to seek authorization capital investment threshold, may find that these fees make
from the CDC to make any changes to company details the QIP scheme less attractive.
(e.g. registered shareholders). As such, prospective investors
should consider the following questions before applying:
Q Will I be exporting my products,
and from where will I source my inputs?
16
Vocational Training. The Royal Government
seeks to provide each Zone a ‘one-stop
shop’ to assist in troubleshooting and
navigating the Kingdom’s bureaucracy.
16 2013 96 5
Poipet Shandong Sunshell
Banteay Meanchey
15
Stung Treng Dragon King Bavet 2012 106.5 4
KANDAL PROVINCE
Kampot
Sihanoukville Kep
Goldfame Paksun 2007 80 2
Q&A
President
the same rights as a locally-owned company. One exception to this rule Chambre de Commerce et d’Industrie France Cambodge
Euuro
E r oC
C hh
ama mBuWe l csso me
sin e Pac k 20 17
Gu ide S et t i ng Up | 3 1
Photo by Fabien Mouret
split into ‘strata titles,’ of which 70% can be foreign-owned. Q What are the most common
The land that the development sits on must still be owned ways for foreign companies to
by Cambodian nationals (either the developer or divided protect their interests over land
between the Cambodian strata-title owners), though in the country?
applicable regulations provide sufficient levels of protection
to the foreign investor to ensure that the property cannot be
destroyed or replaced without their consent or an appropriate
A joint venture One option is to take a minority stake of up
to 49% in a joint venture with a Cambodian
level of compensation. partner. This joint venture company would
with a Cambodian then be eligible to own the land. This
approach carries admin costs, registration
Q How common is it for foreign investors to seek to
control land in Cambodia?
partner can be fees, as well as a potentially high tax
burden. However, it is one of the lowest-
risk options because the company and its
For many companies, particularly those operating within the configured to assets can be configured to provide layers
services sector, this isn’t really an issue at all; the business of security to the foreign shareholder or
model and strategy does not require them to own land within
the Kingdom. Retail and service companies are more likely to
provide layers of its lender. An alternative option, one that
is not available in most other Southeast
lease an office space, which is relatively easy and no more Asian countries, is to have the joint venture
difficult for a foreign company than a local company. And as security to the company register a mortgage on the land,
we have discussed, they also have the option of purchasing which in effect ensures that the asset
property that is not on the ground floor.
foreign shareholder cannot be transferred without the consent
of the foreign shareholder or lender.
It is also permitted to enter into long-term leases that
guarantee rights over land or property for an extended
period of time. Even within the industrial sector (where
or its lender.
Q What other options are available to
investors are planning to invest in factories
or warehouses), a long-term lease can foreign investors?
provide sufficient protection for the
There are no restrictions on foreigners or foreign entities
investment. One should also consider that
acquiring control over land that is Cambodian-owned
land prices around the Phnom Penh area
through a long-term lease agreement. Lease agreements
have been increasingly rapidly over the past
of more than 15 years are quite common, particularly
decade and purchasing land now requires
within the Kingdom’s dedicated Special Economic Zones
significantly higher levels of capital than was
previously the case, so more investors are
Mechanisms can (SEZs). Investors can include provisions within the lease
contract to ensure against the land being sold without
looking at leasing options.
Keep in mind that some investment projects
be put in place to the lessee’s consent.
land despite not injecting the greatest amounts of capital into the country. For
a typical European SME I wouldn’t see this as a viable option
as European companies usually do not register land directly
being the owner. in the name of an individual.
Eu ro C h am Bu sin e ss Gu ide S et t i ng Up | 3 3
Q Are there any strategies that you
would advise against?
Advisory services
Our online membership
directory contains a number
of reliable investment advisory
service providers: Photo by Chor Sokunthea
eurocham-cambodia.
org/directory
Eu ro C h am Bu sin e ss Gu ide S et t i ng Up | 3 5
MOVI N G
FORWA R D
When registering as a new taxpayer, the During the business registration process, new
company must pay that year's patent tax in full companies having their official documents
if registering within the first half of the year. If authorized by the General Department of
registering in the second half of the year, half Taxation are required to pay a one-time
the normal fee is due. This is collected at the Registration Tax of 1m KHR (approx. 250
same time as Registration Tax. USD) prior to receiving a TIN.
collected each March and the amount due Some online sources cite a figure of 285 USD for
is based on total annual turnover (see table). Patent Tax but this is outdated.
Cambodia has one of the most competitive tax regimes in Southeast Asia. In the
following pages we give a brief overview of the most common tax liabilities an SME can TIER THRESHOLD (KHR) THRESHOLD (USD) PATENT TAX
2000m—10,000m or QIP
Large status with revenus ‹2,000m 500k—2.5m 3m KHR= 750 USD
F O R M A L I Z AT I O N
OF THE ECONOMY Tax on Profit / Minimum Tax
Annual income tax is payable through the of ‘abnormal management’, are not related
Tax on Profit [TOP]. For most companies, to personal needs, and did not provide any
TOP is calculated at a standard rate of 20%. benefits to third parties. There are specific
guidelines in place for permissible tax
The 2016 Law on Financial Management There are a few exceptions: depreciation methods.
Until early 2016 Cambodia had two tax now requires all businesses to register under
systems: the ‘real regime’ which requires the ‘real regime’. This is a major reform by • Sole proprietorships and general
The Law on Taxation also provisions for
partnerships are subject to a cumulative
taxpayers to file monthly and annual tax the Royal Government as previously around a ‘Minimum Tax’ [MT], however as of the
banded tax rate up to a maximum taxable
returns, be open to tax audits, and charge 80% of businesses within the country new Law on Financial Management 2017
profit of 150m KHR (approx 37,500 USD),
value added tax (VAT) to their clients, and participated only within the ‘estimated companies can obtain exemption from
after which they incur the 20% TOP rate
the ‘estimated regime’ which was a legal but regime’. This transition is a large component this tax provided they maintain proper
more informal method of tax calculation of the Royal Government’s broader • A rate of 30% for companies extracting oil, accounting records and subject themselves
intended for smaller businesses. In practice, objective of formalizing the economy, natural gas, and natural resources to external auditing. For information, the
this ‘estimated regime’ was sometimes which will help to create a more level MT rate is set at 1% of annual turnover
exploited by larger companies as a means playing field for foreign investors. In 2015, • Insurance companies pay different rates (revenue), inclusive of all taxes except
depending on the type of insurance
to pay less tax than they would have tax collection increased by 25% from the for VAT. In practice this is the rate paid by
done under the more stringent reporting year prior, despite no increase in corporate • QIP can benefit from lower TOP rates or companies in a loss situation, as the MT is
requirements of the ‘real regime’, and tax rates. This demonstrates that the General exemptions subject to approval of the CDC not payable where TOP payments exceed
was perceived by some foreign-owned Department of Taxation’s efforts to better the MT calculation.
businesses under the ‘real regime’ as a implement the Kingdom’s tax requirements Expenses incurred through the tax year are
source of unfair competition. are bearing fruit. deductible provided they are not indicative
Eu ro C h am Bu sin e ss Gu ide M o v i ng F o r w a r d | 3 9
Ta x on Sal ary (TOS) Value -Ad d e d Ta x [VAT ]
a n d With h o l d i n g Ta xe s Imp or t D utie s
Employers are required to withhold income
tax from salaries and other benefits paid
VAT is applicable to the supply of goods and Most goods being imported into Cambodia
to employees.
services used for production, trading and are subject to import duties ranging
consumption in Cambodia (including goods between 0% and 35%.
For taxation purposes, individuals are
imported into Cambodia).
classified as ‘resident’ in Cambodia if their
As an ASEAN member, Cambodia has
residence or principal place of abode is
The standard rate for activities not since 2000 been implementing the tariff
within Cambodia or the individual is present
specifically detailed as VAT-exempt is reduction schedule as agreed under the
within Cambodia for more than 182 days in
10%. Goods exported from Cambodia are Common Effective Preferential Tariff
any 12-month period that ends within the
subject to a zero-rate, and certain business Scheme for the ASEAN Free Trade Area, and
applicable tax year. Personal income tax
activities are also considered exempt. has committed to tariff reduction schedules
rates vary between 0% and 20% dependent
as part of ASEAN’s collective Free Trade
upon the level of personal income as per
Withholding tax is a mechanism to collect Agreements with China, Australia, India,
the following table:
tax from products and services provided Japan, South Korea and New Zealand.
by businesses unregistered for VAT. Tax- Products originating from these countries
compliant companies making payments for of from within ASEAN may therefore
services rendered to individuals or companies receive more favorable rates at the point of
TAXABLE INCOME FOR TAXABLE MONTHLY PERSONAL INCOME
that do not provide a valid VAT receipt are import provided that a Certificate of Origin
THE MONTH (KHR) TIER INCOME (USD) TAX RATE (%)
required to withhold a proportion of the certificate can be provided.
agreed fee from the service provider and pay
<1,000,000 0 – 250 0 this as tax. For services, this rate is set at 15%.
In most scenarios you will be required to pay
1,000,001 – 1,500,000 250 - 375 5 either VAT or Withholding Tax on goods and
services, depending upon the VAT status of E x p or t dutie s
1,500,001 – 8,500,000 375 – 2,125 10 the supplier.
Most goods can be exported from
8,500,001 – 12,500,000 2,125 – 3,125 15 For certain, specific transactions such as Cambodia duty-free.
when renting a commercial property from
>12,500,000 3,125+ 20 a registered company, businesses can The few exceptions include natural rubber,
be required by Law to pay both VAT and timber, precious stones and metals, seafood,
Withholding Tax. and antiquities.
A non-resident tax payer is an individual who does not meet the ‘residency’ criteria above but cambodiantr.gov.kh
who has income generated in Cambodia. A non-resident tax payer is taxed at the flat rate of
20% on income from Cambodian sources.
Q&A
banking system is considered relatively undeveloped compared to Mr. David Sok Dara Marshall has over a decade of experience
at one of the country’s leading banks, and previously served
most other ASEAN markets, but it is growing rapidly. Some businesses,
as a board member of The Association of Banks in Cambodia.
both foreign-owned and locally-owned companies, report that it can He kindly spent some time with EuroCham to discuss the
different options available to foreign investors when it comes
be difficult to obtain domestic financing at competitive interest rates.
to financing their projects in the Kingdom.
However, foreign investors in Cambodia do benefit from the absence of
Eu ro C h am Bu sin e ss Gu ide M o v i ng F o r w a r d | 4 3
Q So the major challenge to securing financing in Q Should businesses be operating in US
Cambodia is the difficulty in satisfying the banks’ need Dollars or Cambodian Riel?
for security?
Both currencies are acceptable in
Banks in emerging markets generally do perceive greater levels Cambodia although US Dollars account for
of risk with non-investment grade foreign investors, SMEs or roughly 90% of deposits and credits within
commercial businesses, particularly those without immovable the Cambodian banking system. The
property assets. However, this issue of securities isn’t the only Cambodia is generally exchange rate between the two currencies
reason that foreign investors may seek capital from their home has proven to be very stable and foreign
markets—cost of borrowing is typically lower in Europe than investors who report in Dollars avoid the
in Cambodia. Major European banks who have been operating
very accommodating risk of currency fluctuations impacting their
for a much longer period of time than most Cambodian profit margins—a concern in some other
banks may have a higher credit rating and therefore their cost to foreign investors Southeast Asian markets. However, parent
of raising funds is lower, resulting in lower interest rates to companies who report in Euros are still
borrowers. The difference in interest rates can be substantial. susceptible to EUR/USD fluctuations.
Eu ro C h am Bu sin e ss Gu ide M o v i ng F o r w a r d | 4 5
Q What is the current state of Q Why has lending growth been so rapid in recent years?
the consumer lending market?
Well for one you have to consider that these rates of
Cambodia is currently experiencing rapid growth in growth are based on a lower starting point than in more
consumer lending, much of which is being facilitated by the economically developed countries, though there have been
country’s very active microfinance sector, specialised banks some innovations in the market that have facilitated greater
and increase appetite from commercial banks. To give you an activity on the part of lenders. In particular, the creation
idea of how fast this part of the market is growing, between of the Cambodian Credit Bureau (CBC) in 2012 has really
2015 and 2016 loans for ‘personal consumption’ grew by emboldened the MFI community—whereas previously
42 %
42.7%. This trend can be significant for European investors individual credit applicants would be assessed in some cases
in retail or providing services as there is now a much larger informally, perhaps taking advice from authority figures
pool of viable customers with track records of repayment within local communities, now lenders can get more reliable
throught the CBC. Issuance of credit cards increased as well and historical data to assess the feasibility of these borrowers.
from about 40 thousand at end of 2015 to 55 thousand by The number of MFIs in the country increased from 10 in
end of 2016. 2004 to69 in 2015 and this was in part driven by the greater
confidence provided by access to the CBC, not to mention
Targeted micro-financing is a growing niche market with
42.7% year-over- higher returns in the MFI sector when compared to the
some institutions offering loans specifically for the purchases
banking sector. There was also a significant ‘low base’ effect
of particular durable goods such as household appliances year growth in
with the MFIs and consumer lenders folding un-banked into
and motorcycles. Some local businesses have established
consumer loans the formal finance sector.
commercial ties with MFIs in order to provide financing
solutions to potential customers and increase the pool of
consumers who can realistically afford their products.
Q In summary, what are the most important points
that new European investors into Cambodia should
Q The Cambodia Stock Exchange is now launching be considering when it comes to financing?
a ‘Growth Board’ aimed at young SMEs—could
For European investors, Cambodia offers significant
this be a viable option for European investors who
opportunities in large part because of its demographic
have been successfully operating in the Kingdom dividend and its low-base, high-growth economy. The
and wish to expedite their expansion activities? median age of Cambodia is 24 and about 65% of the total
population are under 30. Cambodian people are coming to
The Growth Board has been designed to make it easier for
have higher levels of disposable income, they are tech savvy,
smaller companies to participate in the Stock Exchange with
they want to be modern, they consume, they are motivated,
a minimum shareholders’ equity of 500,000 USD rather than
and most importantly they want to discover new things
the 7.5m USD required for the Main Board, though of course
and enhance their lifestyles. With a strong micro financing
this figure would still be too high for many of the European
sector and consumer finance options, far more Cambodians
SME ventures that we have seen in Cambodia to date. Listing
are now able to afford a greater range of products. Despite
on the Stock Exchange requires audited financial accounts
the fast and continued growth of the banking sector in
demonstrating the economic potential of the business and the
Cambodia, obtaining domestic financing can be challenging
listing process itself takes a considerable amount of time and
for a new market entrant and any viable business plan for the
resources so this would be an option for companies with real
country needs to incorporate due considerations of where
long-term growth plans in Cambodia. At time of publication
the initial funding is going to come from.
there had been no listings on the Growth Board though some
SMEs have expressed interest and it is hoped that this could
be a viable option for some investors over the coming years. Accounting & Financial services
Companies in need of professional financial advice are invited to
contact any of the firms listed within our online directory:
eurocham-cambodia.org/directory
Eu ro C h am Bu sin e ss Gu ide M o v i ng F o r w a r d | 4 7
3. H U MAN H I G H E R E D U C AT I O N A N D T R A I N I N G
GLOBAL RANKINGS 2015-2016
R ES O U RCES
SINGAPORE 1
MALAYSIA 36
THAILAND 56
PHILIPPINES 63
INDONESIA 65
VIETNAM 95
The Cambodian work force offers a competitive advantage due to LAOS 112
favorable demographics and comparatively low labor costs—but the CAMBODIA 123
availability of skilled workers with higher education is limited. Cambodia’s MYANMAR 134
Labour Law grants employees certain inalienable rights that apply equally
to all Cambodian and foreign staff in the country, regardless of where the
contract is signed. Source: World Economic Forum, The Global Competitiveness Report 2015-2016
S k ill s
av y
the
and have in turn been rewarded with greater
So
u
levels of productivity. While the law requiring employers
No
by
to
Ph
o to obtain work permits on behalf of
their foreign employees has been in
place since 1997, there has in recent
years been a stronger push towards
enforcement and it has become all-
the-more important for employers to
ensure that they are compliant.
Hi r i n g for e ign s t a ff
and can cause problems for employers CamHR, HRInc, Cambodia Recruitment Agency,
who do not have the necessary permits. Everjobs and Top Job Cambodia.
27
NATIONAL HOLIDAYS
2–5 years 1 month 15 days of wages per year served Service periods are rounded to the nearest year, so 1 year
and 5 months would require 15 days of wages but 1 year
and 7 months would require 30 days.
5–10 years 2 months 15 days of wages per year served
southeastasia-iprhelpdesk.eu
Cambodia is in a process of developing and implementing its intellectual
number of IPR laws based upon international norms including copyright protection and
exclusive rights on trademarks, patents and geographical indicators that foreign investors
It is important to note that registration While the body of IPR laws has been
of patents and trademarks is on a first- developed with World Trade Organization
MADRID
in-time, first-in-right basis. Accordingly, assistance and is broadly in line with PROTOCOL
applying for trademark and patent international standards, enforceability can
protection should be considered even be problematic and in some industries such
Madrid Protocol
before products or services are sold in the as garments, alcohol and pharmaceuticals,
Cambodian market. IPR infringement is rife. wipo.int/madrid
Eu ro C h am Bu sin e ss Gu ide M o v i ng F o r w a r d | 5 9
IP R I N F O R M AT ION
The diagram below provides the IPR information most commonly applicable to companies
doing business in Cambodia.
Resolution
Nation al Ar b itr ation
of commercial C e nte r ( NAC )
resolution mechanisms. Recognizing the importance of this area in prove expensive & Penh in March 2013. In creating the NAC,
the Royal Government has sought to
increasing investor confidence, the government is proactively working to increase confidence within the investment
G E T TI N G S TA R TE D I N CA MB O D I A | 6 7
MULT IL AT E R AL
CO NTACT S
LO C A L B US I N ES S
A S S O C I AT I O N S
CAMBODIA HOTEL ASSOCIATION
Ms. Carrol Sahaidak-Beaver L is t o f ac r o n y m s
CBM Office Building, No.35-37,
ASIAN DEVELOPMENT BANK BRITISH CHAMBER Street 214, Phnom Penh
CAMBODIA RESIDENT MISSION OF COMMERCE IN CAMBODIA (855) 76 222 8880
No. 29, Preah Suramarit Blvd, (BRITCHAM) director@cambodiahotel
Phnom Penh c/o British Embassy, AA Articles of Association
association.com.kh
(855) 23 215 805 No. 27-29, St. 75, Phnom Penh ACU Anti-Corruption Unit
(855) 23 215 806 (855) 12 323 121 CAMBODIA TOURISM
FEDERATION ASEAN Association of Southeast Asian Nations
(855) 23 216 417 executivedirector@
britchamcambodia.org No. 23, St. 139, CBC Cambodian Credit Bureau
adb.org/carm
britchamcambodia.org Phnom Penh CDC The Council for the Development of Cambodia
INTERNATIONAL FINANCE CORP. (855) 76 222 8880
CAMBODIA OFFICE FRENCH CHAMBER CMA Cambodian Microfinance Association
info@cambodiatourismfederation
5th Floor, Phnom Penh Tower, OF COMMERCE AND INDUSTRY .asia CSX Cambodia Securities Exchange
No. 445, Preah Monivong Blvd, IN CAMBODIA (CCIFC)
FEDERATION OF CAMBODIAN FDC Fixed Duration Contracts
Phnom Penh No. 30 Preah Norodom Blvd,
RICE MILLERS ASSOCIATIONS FDI Foreign direct investment
(855) 23 863 200 Phnom Penh
shor@ifc.org (855) 81 666 112 Mr. Ny Lyheng, Managing GI Geographical Indications
ifc.org (855) 23 221 453 Director National Road No.5,
ILO International Labour Organization
ccfc@ccfcambodge.org Battambang City, Battambang
INTERNATIONAL LABOUR Province IPO Initial Public Offering
ORGANIZATION GERMAN BUSINESS GROUP (855) 12 932 388 IPR Intellectual Property Rights
CAMBODIA LIAISON IN CAMBODIA (ADW) (855) 88 932 3888
KHR Cambodian Riel
Mr Sophorn Tun, National No. 6A, St. 294, Phnom Penh lyhengny@yahoo.com
Coordinator in Cambodia (855) 23 223 747 LCE Law on Commercial Enterprise
info@adw-cambodia.org FEDERATION OF
2nd Floor, Phnom Penh Center, LLC Limited Liability Company
CAMBODIAN RICE EXPORTERS
Building F, St. 274/3, Phnom
CAMBODIA CHAMBER Cambodian Chamber of MFI Micro-Finance Institution
Penh
OF COMMERCE Commerce Building, MLMUPC Ministry of Land Management,
(855) 23 220 817
Building No.7D, Russian Blvd, No. 7D, Russian Federation Urban Planning and Construction
phnompenh@ilo.org
Phnom Penh Blvd, Phnom Penh
MLV T Ministry of Labor and Vocational Training
UNITED NATIONS INDUSTRIAL (855) 23 880 795 (855) 89 222 013
DEVELOPMENT ORGANIZATION info@ccc.org.kh info@fedocrex.com MT Minimum Tax
(UNIDO) fedocrex.com NAC National Arbitration Center
CAMBODIA
Mr. Narin SOK, head of UNIDO
CONSTRUCTORS’ ASSOCIATION GARMENT MANUFACTURERS NBC National Bank of Cambodia
Operations in Cambodia
12th floor, Canadia Tower, ASSOCIATION IN CAMBODIA NEC National Election Committee
c/o UNDP Office, No. 53, St. 51,
No. 315, St. 110/93, Phnom (GMAC)
PO BOX 877, Phnom Penh PLC Public Limited Company
Penh Mr. Van Sou Ieng, Chairman
(855) 23 216 167 QIP Qualified Investment Project
(855) 23 868 222 Dr. Ken Loo, Secretary General
WORLD BANK (WB) – R ESIDENT (855) 23 8 81 202) RO Representative Office
No. 175, St. 215, Phnom Penh
MISSION IN CAMBODIA secretariatcca@yahoo.com
(855) 12 563 082 SEZ Special Economic Zone
No. 113, Preah Norodom Blvd, cca.org.kh
(855) 23 301 181
SME Small and medium-sized enterprise(s)
Phnom Penh CAMBODIA FEDERATION info@gmac-cambodia.org
(855) 23 213 538 gmac-cambodia.org TIN Tax Identification Number
OF EMPLOYERS AND BUSINESS
(855) 23 217 301 ASSOCIATIONS (CAMFEBA) TOP Tax On Profit
(855) 23 217 304 PACIFIC ASIA TRAVEL
Mr. Van Sou Ieng, President ASSOCIATION (PATA) CAMBODIA TOS Tax On Salary
worldbank.org
No. 44A, St. 320, Phnom Penh CHAPTER OFFICE UDC Unfixed Duration Contracts
(855) 23 222 186 No. 147, 1st Floor, St. 51
(855) 23 219 279 UN United Nations
(Pasteur), Phnom Penh
camfeba@camfeba.com (855) 23 555 2134 UNDP United Nations Development Programme
camfeba.com info@patacambodia.org VAT Value-added tax
WB World Bank
W TO World Trade Organization
Eurocham Cambodia
eurocham-cambodia.org
eurocham-cambodia
Founding Chapters