How to start a business in Cambodia

Cambodia presents strong potential for entrepreneurs and small business owners looking to establish a presence in a fast-growing market. According to the UNDP, SMEs (small and medium-sized enterprises) form the backbone of Cambodia’s economy, accounting for 99.8% of all companies, 70% of employment, and contributing 58% to GDP¹.

Many SMEs in Cambodia operate in sectors such as food and beverage retail, textiles, and furniture — industries that align with both domestic consumption trends and growing export demand. Whether you’re exploring how to start a small business in Cambodia or expand an existing venture, understanding the country’s registration processes and regulatory environment is essential to long-term success.

What type of business entities are there in Cambodia?

When starting a business, whether big or small in Cambodia, the initial crucial step is to determine the appropriate business entity to register. There are several options to choose from, including:

• Sole proprietorship: A simple structure owned and operated by one individual, typically used for small-scale operations.
• Partnership: Formed by two or more individuals or entities who share ownership and responsibilities.
• Limited partnership: Consists of one general partner with unlimited liability and one or more limited partners whose liability is restricted to their capital contribution. Only the general partner is involved in day-to-day operations.
• Private limited company: A widely used entity for both local and foreign investors. Requires at least one director and two shareholders (up to a maximum of 30).
• Public limited company: Designed for larger enterprises intending to raise capital from the public. This structure allows for an unlimited number of shareholders, with each bearing limited liability.
• Single-member limited liability company: A type of private limited company owned by a single shareholder. Liability is limited, making it ideal for solo business owners who want legal separation between personal and business assets.
• Representative office: A non-income-generating entity set up by a foreign parent company to conduct market research or liaise with local contacts. It has limited liability but cannot engage in commercial activity.
• Foreign branch office: An extension of a foreign parent company. While it can carry out profit-making activities, any liabilities incurred are directly tied to the parent company.
• Subsidiary: A locally incorporated company majority-owned by a foreign parent. It operates as a separate legal entity, with liability limited to the company itself.

1. Appoint a registered agent 

A business must designate a registered agent who is a resident of Cambodia and possesses the necessary legal qualifications in order to adhere to Cambodian rules. This individual will act as the official point of contact for the company and will be authorised to receive all legal documents and papers from courts on the company's behalf. 

2. Consolidate your Articles of Incorporation

In addition to appointing a registered agent, companies must prepare Articles of Incorporation to complete the incorporation process. These documents define the company’s structure, governance, and operational procedures. The details are usually formalised during the statutory meeting and can be amended later through shareholder resolutions. 

It's essential to ensure compliance with Cambodia’s Ministry of Commerce’s regulations when creating the Articles of Association to avoid legal issues.

Examples of what should typically be included in the Articles of Incorporation when starting a business include: 

• The company's authorised capital issued capital, and paid-up capital
• The business activities of the company
• The period of incorporation
• The company's purposes and objectives
• The company name and registered address
• The number of shares, classification (if any), rights attached to each share, and nominal value for each share
• The names and number of members of the Board of Directors and Board of Commissioners
• The place and procedures for holding a general meeting of shareholders
• The guidelines for appointment, replacement, and dismissal of members of the Board of Directors and Board of Commissioners
• The process for profit utilisation and dividend distribution.

2. Register your business with the Ministry of Commerce

Once you’ve chosen your business entity and consolidated your Articles of Incorporation, the next step is to officially register your company with the Cambodian government. All businesses must complete registration with the Ministry of Commerce (MOC) directly or through reliable third party sites. 

To avoid delays, prepare the following documents in advance:

• Completed application form to the state in which your business is operating in
• Copy of your company's articles of incorporation (if a limited company)
• Copy of registration certificate
• Copy of business licence from the Ministry of Commerce
• Copy of identity card or passport of the person who signed the application
• Photo of the front entrance of the office
• Land title or lease agreement

Once approved, your business will receive a Certificate of Incorporation, which serves as formal proof of registration.

3. Register your business address

Your company must also register a physical business address with the relevant municipal authority — such as the Phnom Penh or Siem Reap Municipal Office — based on where operations will be based. This step is legally required and ensures your business can receive official correspondence from government agencies.

Use the same supporting documents listed above when submitting your address registration, including:

• Articles of Incorporation
• Certificate of Incorporation
• Business licence
• Lease agreement or land title
• Identification document of the signatory
• Photo of your office exterior

4. Incorporate your company with the Business Registration Department

Once the above steps have been completed, you can register your business with the respective government authorities.

To establish a company in Cambodia, you must register it through the Online Registration Services available on the Cambodia Data Exchange (CamDX) system under the Ministry of Economy and Finance (MEF). 

To begin the registration process, you must create a user account, which will require your name, contact information, and personal details. 

Once you have selected the type of company you wish to establish, you must reserve a company name by proposing a Khmer name, which will undergo an automated verification process. You may also register the name in English or another language. Afterwards, you must select the type of business you want to set up.

A reservation fee is charged for reserving the company name. Once you have paid the fee, your proposed name will be reserved, and no other company will be allowed to use it. After the registration has been approved by the Ministry Of Commerce (MOC), your company will be issued a Certificate of Registration. This document can be obtained online or at the Department of Registration.

5. Fulfil post-registration requirements

Once your company is officially incorporated, there are several final steps to complete before you can begin operating legally in Cambodia. These include securing official seals, registering for social security, and opening a corporate bank account.

a) Create and register your company seal

Your company must have an official seal that meets the format specified by the MOC. After engaging a licensed seal maker, you’ll need to register the completed seal with the Department of Administration and General Affairs. This seal will be used on official documents such as contracts and financial records.

b) Register with the National Social Security Fund (NSSF)

All employers must register with the NSSF, which provides medical care and occupational risk protection for employees. Once registered, you must make monthly contributions based on employee salaries and fulfil reporting requirements to remain compliant.

c) Open a corporate bank account

Within 15 working days of obtaining your Certificate of Incorporation, you must open a corporate account at a nearby Cambodian bank and deposit the paid-up capital of the business. A bank statement showing proof of deposit must also be submitted through the CamDX platform as part of your compliance obligations.

How to start a business in Cambodia as a foreigner

Foreign investors in Cambodia enjoy one of the most liberal business environments in South-East Asia². Most business sectors allow up to 100% foreign ownership, with minimal restrictions outside of land ownership and specific regulated industries. This makes Cambodia an attractive destination for entrepreneurs seeking to tap into its growing domestic market and export potential.

For foreigners, the process of starting a business closely mirrors that of local entrepreneurs. You will still need to select a business entity, appoint a registered agent, and fulfil the same incorporation requirements under the Ministry of Commerce (MOC). However, it’s important to ensure that your company is established with a clear legal structure and compliance with local residency and documentation standards.

Foreigners can register their companies through the Cambodia Data Exchange (CamDX) platform, which facilitates name reservation, digital submission of required documents, and payment of fees — all in one place. While Khmer is the primary language for official filings, English translations are commonly accepted for most supporting documents.

Become a successful business in Cambodia

Building a successful business in Cambodia goes beyond registration — it requires choosing the right industry, understanding market demand, and ensuring smooth operations from day one.

Cambodia’s expanding middle class and young population make it an attractive landscape for entrepreneurs. Business ideas that tend to do well include:

• Food and beverage outlets, particularly cafés, quick-service restaurants, and locally inspired eateries
• Retail and e-commerce stores, especially those focused on fashion, electronics, or household essentials
• Agricultural ventures, such as organic farming or food processing, which benefit from the country’s rich natural resources
• Construction-related services, including interior design, home improvement, and sustainable building materials
• Logistics and supply chain support, as infrastructure development continues and cross-border trade grows

Regardless of your industry, reliable logistics are key to sustained growth — especially if you're targeting regional markets or managing product distribution.

That’s where DHL Express comes in. With global expertise and on-the-ground knowledge of Cambodia’s delivery ecosystem, DHL Express offers end-to-end logistics solutions tailored to your business. From document handling to international shipping, our trusted courier service helps you meet customer expectations and scale your operations confidently. Open a business account today and let us work alongside your business to help you achieve success.