How To Start a Business in Cambodia

It used to be that starting a business in Cambodia was the simplest thing in the world. All you had to do was employ a local agent to handle your business registration – hand across some money, fill in a few forms and pay your patent licence – even if you were not patenting anything (it’s not called the Kingdom of Wonder for nothing). Tax and VAT were three-letter words that had not been invented. Now things have become more formalised, so here is our advice on how to start a business in Cambodia.

It is still relatively easy to register a business in Cambodia, and compared with other neighbouring countries more relaxed. For instance you can still 100% own a company in Cambodia even if you are not Cambodian.

However, we do recommend that if you are considering business registration in Cambodia you follow some fairly simple guidelines.

Develop a Business Plan

Seek a local partner who actually knows the market, be this a Cambodian or expat

The first step is to develop your business plan. Research the market. You don’t want to start a business in Cambodia only to discover that many other companies are providing similar products or services, or that there is no real demand for them in Cambodia. There really is little room for growth in the Phnom Penh coffee shop market.

Second, seek a local partner who actually knows the market, be this a Cambodian or expat.

Third, don’t risk any money you are not prepared to lose. There is an old Cambodian saying that the only way to make a small fortune in Cambodia is to start with a large one. Having said that you can make money in Cambodia. We did and still are – and our initial start up capital was miniscule.

You can never have too many business connections in Cambodia

Finally, have a marketing budget. Too often people start a business in Cambodia, throw a party expecting the customers to start walking in the door (metaphorically and literally). Marketing can be simple and relatively inexpensive, but without it you might as well buy some lottery tickets with your money.

We also recommend you join one of the Buisness Associations in Cambodia, such as AmCham, EuroCham, AusCham or BritCham. You can never have too many business connections in Cambodia.