South East Asia has seen huge developments and one of the fastest growing economies in this region is Cambodia. The infrastructure is being rapidly developed by the government. Prior to the pandemic, Cambodia’s tourism figures were steadily rising and this attracts foreign investors and entrepreneurs, who are keen to get into a growing market. The local population prefer imported goods, and with many multinational corporations investing heavily in the developing nation, the future looks rosy for Cambodian businesses.
Initial Attraction
You may have taken a holiday in Cambodia and were very impressed with the colourful culture and welcoming people, and if you can set up a local business, you can relocate to the tropical paradise that is Cambodia. Indeed, many expats have done just that and they live very comfortably near the beach and many marry a local and relocate permanently. By registering your business and incorporating your partner, you will have a secure income. Local services can help with the paperwork, when it comes to tax return time.
Setting Up a Business in Cambodia
There are specialist companies that facilitate foreign business registration in Cambodia and they can easily be contacted via the Internet. Once the business is up and running, there are affordable payroll outsourcing services in Cambodia from a local provider who can also handle your bookkeeping, accounting and tax returns.
Types of Business
There are several ways that you can register a business in Cambodia;
- Representative Office: This works for a foreign company that wishes to explore the domestic market in Cambodia, which gives you 1 long-term working visa and as a non-trading entity, the business requires no business capital. You could set up a small office and carry out your research until you are ready to change to a trading entity.
- Foreign Branch Office: If your business is well-established and you have carried out your market research and wish to do business in Cambodia, this is the best option. The trading entity can employ foreign workers and is unrestricted regarding business activities, while allowing for one foreign branch manager.
- Limited Liability Company: This type of business is non-trading and can employ foreigners issued with work permits, with 1 director and 1 shareholder and is subject to local compliance, while enjoying unrestricted business services. There is a $1,000 minimum investment with this type of company. Liabilities are, of course, limited to the amount you invest and if you would like to learn more about this, or any of the other business registration packages, talk to a company that facilitates foreign business formation.
Obtaining the Best Advice
Like most developing countries, the Kingdom of Cambodia has its own laws regarding business and with their own language, this can be a real ordeal for the foreign investor. If you search online, you will find a company that focuses on providing business registration services in Cambodia. Once you tell them of your plans, the provider will explain the various options and benefits, and with their help, you will make all the right choices. Click here for tips on creating a good budget for your startup.
Be Compliant
It is essential that you do not break any laws in Cambodia, and by consulting with a local business registration provider, you will be able to make the right choices and be sure that you and your business is compliant with local laws and regulations. This type of company also offers secretarial services, such as payroll, bookkeeping and accounting, which are readily available for a reasonable price, all helping to make your business a smooth operation.
Growing Economy
The cost of living is low compared to Europe, which means your investment will not be as much and as the Cambodian economy is steadily growing, your new business will establish a secure share of the market. If you are partnering up with a local resident, this makes things a lot easier, as they speak the language and understand the protocol of setting up a business.
Fortunately, help is near at hand. If you wish to set up a business in Cambodia, consult with a local company that offers foreign business registration in Cambodia.
Image Credits: Negative Space
Like this article? Share with your friends!