Cambodia a newly emerged South East Asia Country, the effort of the government to liberalize the international trade with the rest of the world. The Cambodia has their own advantage compared to other countries

1. Investment In Cambodia
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2. An overview
 Once known as the Khmer Empire, is a country
located in the southern portion of
the Indochina Peninsula in Southeast Asia.
 Bordered by Thailand to the northwest, Laos to
the northeast, Vietnam to the east, and the Gulf
of Thailand to the southwest.
 The capital is Phnom Penh and most of them
speak Khmer language.
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3. Map of Cambodia
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4. Statistic of Cambodia vs Vietnam
Cambodia Vietnam
Area (10,000 km) 18 33
Population 15 million 93 million
GDP (USD) 160 billion 1,700
billion
GDP per capital (USD) 1,100 1,827
Min wage (USD) 128 130
Admin salary (USD) 150 200
Worker salary (USD) 128 130
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5. EMPLOYMENT INFORMATION
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6. What is the social security rate?
 The National Social Fund (NSSF) has
stipulated that employers who employ 8
employees and above, are required to pay
0.8% of the employee’s average monthly
salary as social security contribution
meanwhile employees are exempted from
the payment.
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7. What is the regulation for the
employment of foreign workers?
 According to the Ministry Of Labour And
Vocational Training (MLVT), the regulation
for employment of foreign personal as
follow :
1. The foreign personnel are required to
provide evidence that their relevant
qualification or skill set can not found in
Cambodia.
2. Foreign personnel must apply for license
renewal by November every year.
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8. What is the regulation for the
employment of foreign workers?
3. The number of foreign employees should
not exceed 10% of the total number of
Cambodian employees. If it is necessary
to increase the number of foreign
personnel, applications need to be made
accordingly.
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9. LAND UTILISATION
INFORMATION
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10. Can foreigners purchase property？
 According to the Civil Code of Cambodia
stipulated that only Cambodians’ are
allow own the land in Cambodia.
However, if the foreign company wants
to purchase land in Cambodia, the
Cambodian must own over 51% of the
company’s capital.
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11. What are the leasing regulations?
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 If the foreigner investors whom lease
property on Cambodia, the contract can
be sustained for 50 years. After which
the contract will be terminated, the
contract could be renewed for less than
40 years. In other word, the duration for
leasing land is maximum 90 years.

12. How many existing Industrial Zones
and Economic Areas?
 Currently, there are 27 Special
Promotion Zones under development in
Cambodia. Amongst of them,
1. Vattanac Industrial Park,
2. Canadian Industrial Park,
3. Por Chen Tong Industrial Park.
 The above mention are the 3 major
industrial park,
 Their average area surface is 15 – 20
hectares.
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13. Where are the main ports in
Cambodia?
 Phnom Penh,
 Sihanoukville
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14. What is the common lease price for
office building and factory?
Cambodia Vietnam
Office (USD/ping) 27 25
Residential
(USD/ping)
22 30
Factory (USD/ping) 6 8
Notes :
1 Ping = 36 square feets
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15. COMPANY SETTING UP
INFORMATION
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16. What are the required documents, procedures, equity
ratio and minimum registered capital for setting up a
foreign enterprise?
 In order to setting up a foreign enterprise the
minimum capital is :
 The companies can be owned wholly by foreigner
investors and require at least one director and
one shareholder.
Entity Min capital
(USD)
Paid up
capital
(USD)
Company 50,000 1,000
Factory 1,000,000 250,000
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17. For offshare company (for both
company and factory as well)
 2 sets of Certificate of Incorporation, M & A
and other relevant documents, which are not
required to be legalized by Cambodia
Embassy, but have to be notarized by
legalized by lawyer or government.
 6 photocopies of directors and shareholders
valid passport and identity card.
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18. For Cambodia company / factory
 New company name
 Company’s business item,
 6 copies of Cambodian company’s director and
shareholder valid passport and identity card,
 2 copies of personal bank credit certificate of
Cambodian company’s director in English
(included the deposit account at least USD 1,000)
 6 copies of 2” x 2” colour photo of Cambodian
director,
 1 original copy of lease contract,
 1 photocopy map of the campany.
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19. How to set up a foreign-invested
company?
 The company name will be verified by the
Minister Of Commerce (MOC).
 After the company name approved, the
investor should open a bank account. Then,
the investor should remit capital into the bank
and apply 2 copies of credit certificate from
the bank, which is required to submit to MOC.
 The investor should submit required
documents to MOC and obtain a business
license, M & A and company stamp from
MOC.
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20. How to set up a foreign-invested
company?
 Apply tax license from Administration Of
Taxation,
 Apply VAT tax application from Cambodia
Development Council (CDC).
 The company can start business once grant
an approval.
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21. How to set up a foreign-invested
factory?
 The company name will be verified by the
Minister Of Commerce (MOC).
 After the company name approved, the
investor should open a bank account. Then,
the investor should remit capital into the bank
and apply 2 copies of credit certificate from
the bank, which is required to submit to MOC.
 The investor had to submit the investment
proposal to Cambodia Development Council
(CDC), The CDC will obtain all relevant
license within 5 – 6 months.
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22. How to set up a foreign-invested
factory?
 MOC will issued a business license, M & A
and company stamp.
 If the factory need to apply for the exemption
from import duties, the investor should apply
directly to CDC. (Import duties exemption for
2 – 3 years, and apply for an extension of 1 –
7 years after the expiry).
 No foreign currency controls, which allow the
factory free access of foreign exchange fund.
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23. How to set up a foreign-invested
factory?
 MOC will issued a business license, M & A
and company stamp.
 If the factory need to apply for the exemption
from import duties, the investor should apply
directly to CDC. (Import duties exemption for
2 – 3 years, and apply for an extension of 1 –
7 years after the expiry).
 No foreign currency controls, which allow the
factory free access of foreign exchange fund.
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24. INCOME TAX INFORMATION &
SPECIAL ECONOMIC ZONES
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25. What are the corporate income tax, withholding
tax and personal income tax in Cambodia?
 If a foreigner living in the country for over 183
days within a taxable year, he / she should
deemed as a resident, otherwise the foreigner
should be deemed as a non-resident
Cambodia Vietnam
Personal resident 0 – 20% 5 – 35%
Personal non-resident 20%
Enterprise (company /
factory)
20 22%
Withholding tax 14%
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26. Where are the Special Economic
Zone (SEZ)
1. Phnom Penh SEZ – about 18 km from
Phnom Penh City
2. Manhattan SEZ – located at the border
of Tay Ninh, Vietnam and Kompong
Cham, Cambodia.
3. Sihanoukville SEZ – located 200 km
from southwest of Phnom Penh.
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27. B. H. Loh & Associates27

28. B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : bhlohass@gmail.com
Web-site / facebook : bhloh.com.my
Thank you
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