Starting a Business - Cambodia

100% foreign equity is permitted in most sectors. Restrictions apply to a narrow list including cigarette manufacturing, movie production, rice milling, and gemstone mining/processing, which require local equity participation or prior authorisation.

The Cambodian Constitution prohibits foreigners from owning land. A legal entity is considered Cambodian (and may hold land title) only if at least 51% of shares are owned by Cambodian nationals; fully foreign-owned companies must lease land rather than own it.

Businesses must register sequentially or concurrently with three agencies via the CamDX digital single portal: the Ministry of Commerce (Certificate of Incorporation), General Department of Taxation (tax registration), and Ministry of Labour and Vocational Training. Name reservation, MoC approval, tax registration, and bank account opening are the core steps.

The Law on Commercial Enterprises sets a statutory minimum capital of KHR 4,000,000 (~USD 1,000) for private limited companies, with 25% payable at registration. Total incorporation timeline is typically 7–21 working days. Regulated sectors (banking, insurance) carry much higher capital floors (e.g., USD 75 million for commercial banks).

Effective 8 January 2026, this Ministry of Commerce regulation mandates standardised document templates, digital signature acceptance, Cambodian-notarised foreign corporate documents, and mandatory third-party background checks on incoming directors and shareholders. The company-secretary requirement for LLCs is deferred to January 2027.

The 2021 Law on Investment offers QIP (Qualified Investment Project) status with corporate tax holidays, reduced rates, and duty-free capital goods imports. There are no restrictions on profit or capital repatriation. The Council for the Development of Cambodia (CDC) is the primary approving body for QIPs requiring USD 500,000–1,000,000+ in capital.