The great tourist industry and the fact that you can fully own your own business in this country make Cambodia a good place to start your own business. Most new businesses owned by foreigners are those providing services in the tourist industry. Setting up a new business is a relatively simple process, but of course there are fairly clear rules and regulations to follow.
The average duration of a tourist stay in Cambodia is five days. During these five days the most visited businesses are hotels, bars and entertainment businesses. Setting up a business providing diving lessons or guided tours for example, is popular with foreign entrepreneurs. Find out what the necessary steps to take are on your way to owning your new business in Cambodia.
The first step in setting up a business in Cambodia is depositing some startup capital in a bank. You will need evidence of your deposit in the form of a bank statement. The capital must be at least 4 million KHR. The size of your company is not relevant to the amount of money that has to be deposited. After making sure that you have set up a business account with your bank, holding 4 million KHR.
The next step in the process of starting a business is a simple one. The proposed name of the new business has to be checked on uniqueness. This is usually done at the Department of Business Registration. This is also where the new original name has to be registered eventually. The company organization details (citing the business name, form, directors and address, must be published in a recognized newspaper. After this the new business has to be registered with the Commercial Register. The Ministry of Commerce issues a company seal.
The Phnom Penh Tax Department will verify and stamp all necessary documents before the business can actually become operational. The Real Regime Tax Office is where issues a tax registration form that can be completed with help from the staff. Now the next step is to notify the Ministry of Labor when you are ready to start hiring staff. The entire process costs around $500 in total. In theory the director of the new business should have visited Cambodia, but this rule is hardly ever enforced. As mentioned before, local knowledge is an important factor in creating your own new customer base.
The process of registering a new business as explained in this text is relatively straightforward and may take between one and four weeks to complete. Of course it is very important to do market research before you take the first steps. Most experienced business owners who started out in Cambodia will tell you that setting up a new successful business without any local knowledge is near impossible. Take the time to get to know the people, culture and 'feel' of a place. This will enable you to work with the local community, which helps to create a buzz around your new business when it starts.