CambodiaBest Business Opportunities in Cambodia and Types of Business in 2024

November 29, 2023by Tetra Consultants0
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  • Being in the heart of southern Asia and the access to various regional markets provides many business opportunities in Cambodia. The country has been one of the fastest growing economies in the world. This economy growth provides plenty of business opportunities in Cambodia for many foreign entrepreneurs and investors. 
  • The low corporate tax of 20% is one of the reasons to register company in Cambodia. With such a low corporate income tax which is the lowest in the region, Cambodia also provides various tax incentives to foreign enterprises and investors which include corporate tax holidays of up to eight years, duty-free import of capital goods, special depreciation on capital expenditure, and no restrictions on capital repatriation. 
  • If you are willing to grab business opportunities in Cambodia, you will not have to wait a longer time as, the thriving business industry of Cambodia provides plenty of business opportunities making it an ideal location for businesses. With a favourable business environment and low taxes, Cambodia offers an attractive proposition for entrepreneurs seeking to expand their operations. Also, the country’s young and rapidly growing population with a strong work ethic provides a large pool of potential employees.   
  • Though there are ample business opportunities in Cambodia, the foreign enterprise will be subjected to various rules and regulations mandatory to be complied with. You do not have to worry about all those regulations as Tetra Consultants is there to comply with your company with all the required compliances within the stipulated time. 

Best business opportunities in Cambodia 

Real estate 

  • Cambodia with such a thriving economy has been watching a steadily developing value of the properties. The opportunities lie in both whether it be commercial and residential property, the demand for real estate in Cambodia is high. 
  • With such a high demand, the real estate business in Cambodia can be highly successful. You might require various legal documents for operating a real estate business in Cambodia which can be drafted and prepare by our experts at Tetra Consultants. Our experts are highly qualified personals who are well trained at their work providing you with high quality services within the time frame.  

Tourism and hospitality sector 

  • Cambodia’s thriving tourism industry, rich cultural heritage, and stunning natural attractions make it an ideal location for businesses in the hospitality and tourism sectors. There are opportunities for experience tourism, eco-tourism, and the development of rich coastal areas. 
  • If you are willing to set your business under Tourism and hospitality sector you can do that easily with the engagement of Tetra Consultants. As we provide offshore company incorporation services, we can help you to set your business in Cambodia hassle-free.  

Agriculture sector 

  • As previously mentioned, the strategic location of the country provides easy access to regional markets, making it a suitable hub for agricultural manufacturing. There are opportunities for innovative approaches to agriculture and manufacturing, which aids to provide plenty jobs to many local workforces.  

Heathcare sector 

  • With the aging population in Southeast Asia and increasing health awareness majorly after COVID-19, there has been a positive outlook for the healthcare industry in Cambodia.  
  • The increasing demand for medical services, pharmaceuticals, supplements, and fitness paraphernalia creates many business opportunities in Cambodia regarding healthcare sector. 

Manufacturing sector 

  • Cambodia’s low labour costs and investment incentives have attracted international companies to establish factories in the country.   
  • These sectors require obtaining various licenses for business operations which can be operated easily by obtaining various trade permits and licenses. Tetra Consultants can assist you with obtaining various trade permits and licenses along with the offshore financial license if the company requires it.  

Types of business in Cambodia 

Sole proprietorship 

  • One of the simplest and common business entity in Cambodia, a sole proprietorship allows owners to own and operate business single handedly. The business entity is not considered to be distinct from its owner which implies that the owner has unlimited liability towards all the debts and liabilities of the company. 

Partnership 

  • A business involving two or more people to co-own and operate a business. The partners share the profits, losses, and liabilities of the business according to the terms of the partnership agreement.  
  • Though there is unlimited liability for general partners, but there also presents a greater potential for growth and expansion and shared financial responsibilities and risk which makes it feasible for many businesses. 
  • These partnership businesses are not liable for corporate income tax but requires filing of accounts and tax returns. These accounting and tax obligations can be fulfilled by Tetra Consultants. 

Limited liability company (LLC) 

  • It is a separate legal entity from its owner, protecting its shareholder from the unlimited liability and from the personal debts. There are various statutory requirements for an LLC to operate in Cambodia which are as follows: 
  • A minimum of one director is required, who can be of any nationality and age. 
  • A minimum of one shareholder required who can be a natural person or legal entity. 
  • No residency requirement for shareholders. 
  • There is no minimum capital requirement for LLCs in Cambodia. 
  • LLCs must have a registered office address in Cambodia. 
  • An annual general meeting of shareholders must be held within four months of the end of the financial year. 
  • LLCs in Cambodia are also subjected to have Memorandum and Articles of Association which can be drafted by Tetra Consultants on your behalf. Our experts can also help your company with corporate bank account opening services which is required for companies to operate in Cambodia. 

Private limited liability company 

  • The basic structure is like the LLCs in Cambodia but requires a minimum of 2 shareholders with a maximum limit of 30 shareholders without any nationality requirement.  
  • The other statutory requirement of these private limited liability company is like the LLCs in Cambodia. 

Single member private limited liability company 

  • Like the LLCs in Cambodia, these companies are having a single shareholder. These types of business in Cambodia does not offer its shares to the public and has many restrictions on transfer of each class of its shares. 
  • The statutory requirement for such companies is as follows: 
  • A minimum of one shareholder with no specific requirements for the residency. 
  • A minimum of one person must be appointed as the director, without any residency restrictions. 
  • A minimum paid-up capital of KHR4 million (US$1,000) is required. 
  • The company must have a registered agent who is a legally competent natural person and a resident in Cambodia. 
  • Tetra Consultants can help you with the requirement of registered agent and address in Cambodia. We also provide services regarding the nominee director and shareholder services if you ever require it.  
  • Apart from this, if at any point of time you want to switch to private limited company you can convert into that upon the shareholder’s approval to increase the number of company shareholders. 

Public limited company 

  • The Cambodian Stock Exchange operates these public limited company which are authorized by Cambodian law to issue shares to the public. There are many statutory requirements the company must adhere to which are as follows: 
  • A public limited company must have at least 3 directors and 2 shareholders. 
  • There is no nationality or residency requirement for the directors and shareholders. 
  • Each director must be at least 18 years old and will be appointed for a term of 2 years, with the option for re-election. 
  • a minimum capital of KHR 4 million is required. 
  • Company is required to have a registered agent who is a legally competent natural person and a resident in Cambodia. 
  • Every company in Cambodia is required to submit an annual declaration to the Ministry of Commerce (MOC). 
  • With these many statutory requirements you can get the help of Tetra Consultants, as through our offshore company incorporation services and accounting and tax obligation services we can provide your company a comprehensive service which will include complying with all the incorporation and accounting requirements of the company. 

Branch office/ representative office 

  • It is an extension of the foreign company which is established in Cambodia to maintain the presence of the company and to promote the products and services of the parent company in Cambodia. These types of business in Cambodia are allowed only to those sectors in which the company has registration.  

Conclusion 

  • As there are many business opportunities in Cambodia you will also be subjected to many regulatory requirements too. Tetra Consultants are the experts which can help you to adhere all the regulatory and statutory requirement of the company. Through our comprehensive business services, we can provide our clients with wide range of services ranging from company incorporation, offshore financial license services, international trademark registration, and many more ancillary services. 
  • Contact us to find out more about the business opportunities in Cambodia and various types of business in Cambodia, and our dedicated and experienced team will respond within the next 24 hours. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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