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What Licenses Do You Need for Your Business in Cambodia?

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What Licenses Do You Need for Your Business in Cambodia?

Overview of Business Licenses in Cambodia

Business licenses are an essential part of legally conducting business in any country & Cambodia is no exception. There are a number of regulations and requirements that must be met before businesses can legally operate in the Kingdom. Understanding what licenses are needed can be daunting for most first-time businesses in Cambodia. 

This article comprehensively introduces the required licenses for running a business in Cambodia.

As always, this information is meant as a guide but we suggest consulting a specialist for their professional guidance. 

Common Licenses and Permits Required To Operate

Licenses and permits in Cambodia will vary between the type of business and its size. But there are common licenses that you need to keep in mind when starting any business in Cambodia.

Business registration: All businesses operating in Cambodia are required to register with the Ministry of Commerce. This registration is typically done through the Department of Business Registration and is necessary to obtain other licenses and permits.

Tax registration: All businesses must register for tax purposes with the General Department of Taxation.

License for specific types of businesses: Some businesses require additional licenses or permits from relevant government ministries or agencies. For example, restaurants, hotels, and bars may require a license from the Ministry of Tourism.

Construction permits: If you plan to build or renovate a building, you will need to obtain a construction permit from the relevant local authority.

Major Industries and Required Permits in Cambodia

The economy of Cambodia is primarily driven by its primary (so-called pillar) industries, which include textiles and clothing (garments), construction, tourism, and agriculture. The interest in entering these sectors over the years has grown. Still, there is also parallel importance for businesses to comply with all the necessary permits and regulations set out by the Cambodian ministries.

Manufacturing

Operating a manufacturing business in Cambodia requires familiarity with the requisite licenses and permits. Knowing which licenses are necessary to conduct business in Cambodia is vital for any entrepreneur looking to successfully and legally conduct business in the country, especially in the pillar industries such as manufacturing.

Required Permits For Manufacturing Business:

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Permit on Small and Medium Factory & Handicraft Establishment

    • General Directorate of Small and Medium Enterprises & Handicraft of Ministry of Industry, Science, Technology, and Innovation (MISTI)

  • Certificate of Operation on Small and Medium Factory & Handicraft

    • Obtained from the Ministry of Industry and Handicraft

  • License for the Use of Product Registration Mark

  • License for the Use of Product Certification Mark CS

    • Obtained from the Institute of Standards of Cambodia

  • Location Approval License

    • Obtained from local municipality/Sangkat

  • Registration for Opening Enterprise, Establishment Ledger, Payroll, and Internal Work Rules

  • Trademark Registration (optional)

    • Obtained from the Ministry of Commerce

  • Tax Permit on Sign Board

  • Permit on Sign Board

KhmerSME is a good online resource of required licenses and supporting documents for conducting business in Cambodia.

Construction and Real Estate

Cambodia's booming property market and construction industry have made it an attractive destination for investors, entrepreneurs, and business owners alike. The first step of being part of the booming property market is knowing which licenses are required to run a construction and real estate business in the Kingdom.

Required Permits for Construction and Real Estate Business:

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Construction Licenses

  • Property Developer License

    • Residential development business license/permits;

    • Co-owned building development business license/permits

    • Land parcel development business license/permits.

    • For companies engaged in property development

    • Obtained from the Ministry of Economy and Finance (MEF)

    • This license is issued in accordance with the Law on the Management of Urbanization and Construction and the Law on the Management of the Real Estate Sector.

    • In 2020 Prakas No. 089 was passed to distinguish between 3 different types of licenses or permits depending on the activity performed by the real estate developer:

  • Real Estate Agent License

    • For individuals engaged in selling properties

    • Obtained from the Ministry of Economy and Finance (MEF)

    • Issued in accordance with the Law on the Management of Urbanization and Construction, and the Law on the Management of the Real Estate Sector.

  • Property Valuation License

    • For businesses engaged in property valuation activities

    • Obtained from the Ministry of Economy and Finance (MEF)

    • This license is issued in accordance with the Law on Property Appraisal.

Tourism and Travel

Cambodia has an ever-growing tourism sector thanks to its vibrant and exciting places to visit and things to do. If you are planning to open a tourism and travel business in Cambodia, it is important to understand the licenses required for operation.

Required Permits for Tourism and Travel Business:

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Tourism License (as Tour Operator or Travel Agency)

  • Location Approval License

    • Obtained from local municipality

  • Tax Permit on Sign Board

    • Obtained from the General Department of Taxation (GDT)

  • Permit on Sign Board

    • Obtained from local municipality

Bizinfo.com - affiliated to the Young Entrepreneurs Association of Cambodia (YEAC) provides a good overview of required Licenses & Certificates for tourism operators.

Food and Restaurant

Opening a restaurant in Cambodia requires more than just creative menu ideas and a perfect location; it also requires the right business licenses. Obtaining and maintaining the necessary licenses to run a restaurant in Cambodia is an essential step in the process of opening a successful eatery. Knowing what types of permits and certificates are required will be an essential ingredient to get your business up and running in the Kingdom.

Required Permits for Food and Restaurant Business:

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Tourism License for Restaurants

    • Obtained from the Ministry of Tourism

  • Tax Permit on Sign Board

    • Obtained from the General Department of Taxation (GDT)

  • Location Approval License

    • Obtained from local municipality

In March 2023, the Cambodia Restaurant Association also released their “Regulatory Compliance Handbook”. Bizinfo.com also offers a detailed section on requried Licenses & Certificates for restaurant operators in Cambodia

Agricultural Wholesaling

Cambodia is a nation known for its diverse agricultural products and burgeoning agri-business opportunities. The sector is mostly involved in farmed crops such as rice, fruits and expanding into a wider range targeting exports to more markets) as well as limited livestock (and an increased interets in fisheries), the country has something to offer every type of agricultural entrepreneur. 

With its plentiful natural resources and favourable climate for certain crops, Cambodia is an ideal location for businesses seeking a foothold in the global agri market.

For those looking to enter this frontier market, understanding what permits and licenses are required to operate a business in the Kingdom will be the first step to their success.

Permits Required for Agricultural Wholesaling

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Registration for Opening Enterprise, Establishment Ledger, Payroll, and Internal Work Rules

    • Obtained from Ministry of Labor and Vocational Training (MLVT)

  • License for Selling Agricultural Input Supplier

  • Location Approval License

    • Obtained from local municipality

Bizinfo.com provides more details on required Licenses & Certificates for the agri industry in Cambodia for wholesalers and retailers.

Tax & Accounting 

To become a licensed accountant or tax professional in Cambodia, an individual must typically have a relevant educational background. This usually includes a degree in accounting, finance, or a related field. In addition to formal education, obtaining a professional certification such as the ACCA (Association of Chartered Certified Accountants) is highly regarded and often necessary for higher-level positions and responsibilities. In order to become a tax agent, one must sit through the national tax examination, and obtain a formal tax agency license. 

Permits Required for Tax Agencies

  • Tax Agent License 
    • Obtained from the General Department of Taxation (GDT), after passing an exam, the agent must be majority shareholder of the tax agency company

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Registration for Opening Enterprise, Establishment Ledger, Payroll, and Internal Work Rules

    • Obtained from Ministry of Labor and Vocational Training (MLVT)

  • Tax Agency License

    • Obtained from the General Department of Taxation (GDT)

Licenses for tax professionals typically need to be renewed annually. The renewal process may require showing evidence of continued professional education and adherence to ethical standards.

Permits Required for Accounting and Audit Firms 

  • ACCA or CPA certificate
    • The certificate holder must be Cambodian and majority shareholder of the firm

  • Certificate of Incorporation (Business Registration)

    • Obtained from the Ministry of Commerce (MoC)

  • Tax Registration for Patent Tax, VAT Number and Transfer Tax

    • Obtained from the General Department of Taxation (GDT)

  • Registration for Opening Enterprise, Establishment Ledger, Payroll, and Internal Work Rules

    • Obtained from Ministry of Labor and Vocational Training (MLVT)

  • Tax Agency License

    • Obtained from the General Department of Taxation (GDT)
  • Membership of The Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA)
    • Obtained from The Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA), as both individual and firm
  • Accounting or Audit firm License
    • Obtained from The National Accounting Council (NAC)

The tax and accounting licensing process in Cambodia is designed to ensure that professionals in the field are well-qualified, adhere to international standards, and are capable of managing financial matters with integrity and expertise. For those looking to enter the profession, understanding and navigating this licensing process is crucial for a successful career in Cambodia’s financial sector.