Types of business in Cambodia
I. Legal Entities
- Limited Liability Company: offers limited liability for you and your shareholders, which can number up to 30. This classification shall protect you from personal liability for any debts that the business may incur, as it has its own distinct legal identity and exists independently of its shareholders.
- Single Membership Private Limited Company (Co., Ltd) | 1 Shareholder
- Private Limited Liability Company (Co., Ltd) | 2 to 30 Shareholders
- Foreign Companies:
- Representative Office (Co., Ltd)
- Allowing investors to test the waters before committing fully.
- Not allowed to buy and sell goods or offer paid services to customers.
- Subsidiary Company (Co., Ltd)
- If your business is a limited and locally incorporated company with at least 51% of the shares held by the foreign parent company.
- Foreign Branch in Cambodia
- Buying and selling goods and services, sign contracts, and generally do everything that a regular Khmer business can do.
- Parent company is liable for all the branch’s debts and obligations.
- May conduct business activities in Cambodia in the sectors in which it is registered.
- If your business is an extension of the parent company thus maintaining liability with the parent company.
- Public Limited Liability Company (Plc)
- Cambodian Stock Exchange is operative.
- A PLC is authorized by law to issue securities (shares) to the public.
- Before your company can be considered for flotation on the stock exchange, you must show it adheres to various financial and accounting standards, and demonstrate that it has set out the corporate structure in a memorandum and articles of association.
- Representative Office (Co., Ltd)
- A General Partnership is similar to a sole proprietorship, but your business involves two or more people combining their efforts and/or assets. You and your partners carry the same legal liabilities when it comes to debts and obligations. Partnerships are a popular type of business entity for professionals such as doctors.
- A Limited Partnership, on the other hand, means that one or more of the partners in your business merely contribute capital to the business while the other partners retain the general designation. By becoming a limited partner you are liable only to the extent of the capital you have contributed. If you are seeking to have, or to be, a silent partner, then a limited partnership may be the most appropriate option for you.
- This is a popular option for many small owner-operated businesses. You own and operate all of the assets of the business. As sole proprietor, you take the entirety of any profits but are also liable for any losses and debts.
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Contact Us
Tel: +85585914201 / +85570914201
Telegram/WhatsApp: +85570914201
Email Address: inquiry@makingiteasycambodia.com
Telegram Channel: t.me/makingiteasychannel
Our Address: #809, Kampuchea Krom Blvd (128), Sangkat Tuek Laak 1, Khan Toul Kork, Phnom Penh