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Business Registration in Cambodia
David Walke
17 March 2014
Business Registration in Cambodia
David Walke17 March 2014
Doing Business assessmentProblem areasSolutionsImpactThe way forward
Reforming Business Registration
Starting a business in Cambodia
Procedure Time to complete
Associated costs (US$)
1 Deposit capital at bank; obtain receipt 1 day -
2 Check name at IP Department 2 days -
3 Check name at Business Registration office 5 days 10
4 Publish notice 7 days 15
5 Incorporate with Business Registration Department 2-3 weeks 400
6 Make company seal 1 day 15
7 Have documents stamped by Phnom Penh Tax Department 3 days 250
8* Register for patent at khan level tax office 3-4 weeks 285
9* Register for VAT at General Tax Department 2 weeks 100
10 Notify Ministry of Labor 30 days 250
11* Receive inspection from Labor Inspector 1 -
Total 104 days $ 1,325
* Simultaneous with another procedure Source: World Bank, Doing Business database
Starting a business in Cambodia
Procedure Time to complete
1 Deposit capital at bank; obtain receipt 1 day
2 Check name at IP Department 2 days
3 Check name at Business Registration office 5 days
4 Publish notice 7 days
5 Incorporate with Business Registration Department 2-3 weeks
Total 30 days
Minimum capital
Background• 112 economies do not require a private
company to have a specific level of capital• More than 50 have abandoned the
practice in the past 7 yearsPractical issues in Cambodia• A bank cannot open an account for a
company which does not exist• The law requires evidence of a bank
deposit prior to incorporationPolicy issues• An entrepreneur should know how much
capital is needed for a particular business• One-size does not fit all – should the law
really determine what capital is needed?
1 da
Starting a business in Cambodia
Procedure Time to complete
1 Deposit capital at bank; obtain receipt 1 day
2 Check name at IP Department 2 days
3 Check name at Business Registration office 5 days
4 Publish notice 7 days
5 Incorporate with Business Registration Department 2-3 weeks
Total 30 days
_______________________________
Checking the availability of a name
Progress to date• Search of trademarks is now done at
Front DeskIssues to address• Company name searches involve 3
databases – these must be consolidated• The names index should be available via a
web site• Rules on names should also be published
on the web site• There should be no need for prior
approval of a name• Then there is no need to reserve a name
in most cases, if at all
1 da
Starting a business in Cambodia
Procedure Time to complete
1 Deposit capital at bank; obtain receipt 1 day
2 Check name at IP Department 2 days
3 Check name at Business Registration office 5 days
4 Publish notice 7 days
5 Incorporate with Business Registration Department 2-3 weeks
Total 30 days
_____________________________________________________________________________________________
Publishing details of new registrations
• Notices are agreed before a company is incorporated
• The notice does not include a registration number – it does not comply with the law
• Some notices may be published for incorporations which do not take place
• Logically, publication must follow registration
• The most efficient form of publication would be via a web site – this could be an automated process
1 da
Starting a business in Cambodia
Procedure Time to complete
1 Deposit capital at bank; obtain receipt 1 day
2 Check name at IP Department 2 days
3 Check name at Business Registration office 5 days
4 Publish notice 7 days
5 Incorporate with Business Registration Department 2-3 weeks
Total 30 days
____________________________________________________________________________________________________________________________
/ /1 day
/ /1 day
Reforming Business Registration
Characteristics of the reform• Automated publication (after registration –
on the web site)• Simplified documentation (forms and Model
Articles)• Legal review only when requested by
Business Registration Bureau• One register (with access via the web site)• Automated production of documents (data
entered only once)• One person only to approve registration• Digitised copies of documents• Shared information
Reforming Business Registration
Characteristics of the reform• Automated publication (after registration –
on the web site)• Simplified documentation (forms and Model
Articles)• Legal review only when requested by
Business Registration Bureau• One register (with access via the web site)• Automated production of documents (data
entered only once)• One person only to approve registration• Digitised copies of documents• Shared information
Starting a business in Cambodia
Procedure Time to complete
Associated costs (US$)
1 Deposit capital at bank; obtain receipt 1 day -
2 Check name at IP Department 2 days -
3 Check name at Business Registration office 5 days 10
4 Publish notice 7 days 15
5 Incorporate with Business Registration Department 2-3 weeks 400
6 Make company seal 1 day 15
7 Have documents stamped by Phnom Penh Tax Department 3 days 250
8* Register for patent at khan level tax office 3-4 weeks 285
9* Register for VAT at General Tax Department 2 weeks 100
10 Notify Ministry of Labor 30 days 250
11* Receive inspection from Labor Inspector 1 -
Total 104 days $ 1,325
* Simultaneous with another procedure Source: World Bank, Doing Business database
Starting a business in Cambodia
Procedure Time to complete
Associated costs (US$)
1 Deposit capital at bank; obtain receipt 1 day -
2 Check name at IP Department 2 days -
3 Check name at Business Registration office 5 days 10
4 Publish notice 7 days 15
5 Incorporate with Business Registration Department 1 day 2-3 weeks 400 ??
6 Make company seal 1 day 15
7 Have documents stamped by Phnom Penh Tax Department 3 days 250
8* Register for patent at khan level tax office 3-4 weeks 285
9* Register for VAT at General Tax Department 2 weeks 100
10 Notify Ministry of Labor 30 days 250
11* Receive inspection from Labor Inspector 1 -
Total 75 days 104 days $ 1,325 ??
* Simultaneous with another procedure Source: World Bank, Doing Business database
The proposed solution
Applicant asks Front Desk to check name, submits documents, pays cashier.Front Desk enters basic data, scans documents
Applicant checks name and completes form
online, prints form and takes to Front Desk, pays
cashier
Applicant checks name and completes application
online with e-signature and e-payment
Examination (and entry of any further data)
Approval by one person
Certificate printed at Front Desk for
collection
Applicant advised by e-mail how to download
certificate
OR
Next steps
• Review the practicality of the proposed reforms
• Consult with those affected – other parts of government and the private sector
• Consult on changes to the law• Consider fees• Agree project management and a project
plan• Agree a system specification
Thank you
David WalkePhone: 086 211 601
Registry Advisers Limitedin association with Jacobs, Cordova & Associates
