Private Limited Company (Ltd / Co., Ltd.)
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Company formation in Cambodia
The Ltd / Co., Ltd. is best suited for: Garment and textile manufacturers leveraging Cambodia's EBA and GSP trade preferences, Real estate and hospitality businesses targeting Phnom Penh and Siem Reap, E-commerce and digital businesses entering the ASEAN market at low cost, NGOs and social enterprises establishing a Southeast Asian presence. The standard corporate income tax rate is 20%. Insurance companies pay 5% on gross premiums. Oil and gas and mining companies pay 30%. Small taxpayers with annual turnover below KHR 250 million can register under the simplified tax regime. VAT is 10% on most goods and services. Withholding tax on dividends to non-residents is 14%. Withholding tax on interest to non-residents is 14%. Withholding tax on royalties to non-residents is 14%. The annual patent tax (business licence tax) is KHR 1,000,000โ5,000,000 depending on turnover. Companies in Special Economic Zones (SEZs) qualify for customs duty and VAT exemptions on imported raw materials and equipment. Cambodia has 11 double tax treaties. The prepayment of tax (1% of monthly turnover) applies as a minimum tax mechanism.
- Garment and textile manufacturers leveraging Cambodia's EBA and GSP trade preferences
- Real estate and hospitality businesses targeting Phnom Penh and Siem Reap
- E-commerce and digital businesses entering the ASEAN market at low cost
- NGOs and social enterprises establishing a Southeast Asian presence
Key Facts
Step-by-Step Formation Process
Reserve a company name with the Ministry of Commerce
Submit a name reservation application to the Ministry of Commerce (MOC). The name must be unique and include a Khmer translation. The MOC checks against existing registrations and reserves the name for 60 days. Name reservation can be done through the MOC online business registration portal.
Prepare and notarise incorporation documents
Draft the articles of incorporation and company statutes in Khmer (with English translation). Prepare the list of shareholders and directors, registered office address, and business activity descriptions. All documents must be notarised by a Cambodian notary. Foreign documents require apostille or embassy legalisation.
Register the company with the Ministry of Commerce
Submit the complete incorporation package to the MOC, including articles of incorporation, shareholder and director details, registered office lease, and the name reservation confirmation. The MOC reviews and issues a Certificate of Incorporation and a business registration certificate. The company is simultaneously registered with the General Department of Taxation (GDT) for tax purposes.
Register for tax, obtain a patent tax certificate, and open a bank account
Complete registration with the GDT for corporate income tax, VAT, and withholding tax obligations. Obtain the annual patent tax certificate (business licence tax). Open a corporate bank account at a Cambodian bank (ABA Bank, ACLEDA Bank, Canadia Bank, Wing Bank). Apply for any sector-specific licences from relevant ministries.
Required Documents
- Passport copies (notarised/apostilled) for all shareholders and directors
- Articles of incorporation in Khmer with English translation
- Company statutes signed by all shareholders
- Registered office lease agreement
- List of shareholders and directors with residential addresses
- Patent tax payment receipt
Cost Overview
Tax Treatment
The standard corporate income tax rate is 20%. Insurance companies pay 5% on gross premiums. Oil and gas and mining companies pay 30%. Small taxpayers with annual turnover below KHR 250 million can register under the simplified tax regime. VAT is 10% on most goods and services. Withholding tax on dividends to non-residents is 14%. Withholding tax on interest to non-residents is 14%. Withholding tax on royalties to non-residents is 14%. The annual patent tax (business licence tax) is KHR 1,000,000โ5,000,000 depending on turnover. Companies in Special Economic Zones (SEZs) qualify for customs duty and VAT exemptions on imported raw materials and equipment. Cambodia has 11 double tax treaties. The prepayment of tax (1% of monthly turnover) applies as a minimum tax mechanism.
Pros & Cons
- 100% foreign ownership permitted โ no local partner requirement
- Low minimum capital requirement (approximately $1,000) โ one of the lowest in ASEAN
- USD-based economy โ the US dollar is widely used for business transactions, reducing currency risk
- Low labour costs โ minimum wage ~$200/month makes Cambodia competitive for manufacturing and services
- ASEAN and RCEP membership provides trade access to major Asian markets
- Weak rule of law and contract enforcement โ dispute resolution can be unpredictable
- Limited skilled workforce outside Phnom Penh โ talent retention is challenging
- Infrastructure gaps in power supply, logistics, and internet connectivity outside major cities
- Regulatory environment can be opaque with informal practices
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.