Cambodia is located in the southern part of the Indochina Peninsula in Asia, bordering Vietnam to the east and southeast, Laos to the north, Thailand to the west and northwest, and the Gulf of Siam to the southwest.

1. Cambodia Basic environment introduction

Cambodia is located in the southern part of the Indochina Peninsula in Asia. It borders Vietnam to the east and southeast, Laos to the north, Thailand to the west and northwest, and the Gulf of Siam to the southwest. . The Mekong River traverses the entire territory from north to south. The land area is 181,035 square kilometers and the coastline is about 460 kilometers long.

Cambodia has a population of about 16 million. The geographical distribution of the population is very uneven, and residents are mainly concentrated in the central plains. The capital Phnom Penh and its surrounding economically developed provinces are the most densely populated, with a population of about 1.5 million. There are about 1 million overseas Chinese in Cambodia.

Phnom Penh, the capital of Cambodia, belongs to the East 7 time zone, and the local time is 1 hour behind Beijing time. Cambodia has no daylight saving time .

Cambodia is rich in high-grade woods such as teak, ironwood , rosewood , ebony , and a variety of bamboos. The timber reserves are about 1.1 billion cubic meters. The forest coverage rate is 61.4%, mainly distributed in the eastern, northern and western mountainous areas. The main mineral deposits include oil, natural gas, phosphate , gems, gold, iron, bauxite, etc. Rich in water resources, Tonle Sap Lake is the largest natural freshwater lake in Southeast Asia and is known as the "Fish Lake". The southwest coast is also an important fishing ground, producing many fish and shrimps.

2. Cambodia’s competitive advantages include the following aspects:

Cambodia’s key/characteristic industries

Cambodia’s economic industry can be briefly divided into three categories: agriculture, industry (mainly the textile and clothing industry and construction industry), and service industry (mainly the textile and clothing industry and construction industry) is tourism).

[Agriculture] Agriculture plays a decisive role in Cambodia’s national economy. Despite constraints such as backward infrastructure and technology, lack of capital and talent, Cambodia has rich agricultural resources, superior natural conditions, sufficient labor force, and great market potential.

[Industry] The garment industry and the construction industry are the two pillars of Cambodia's industry. Cambodia makes full use of the preferential policies such as the Generalized System of Preferences (GSP) granted to Cambodia by 28 countries/regions including the United States, the European Union , and Japan, and actively attracts foreign investment in the garment and shoemaking industry by taking advantage of its low labor costs.

[Tourism] Cambodia is a country rich in tourism resources. The capital, Phnom Penh, has historical sites such as Tha Tsai Mountain and the Royal Palace; Angkor Wat in the Angkor Dynasty ruins in Siem Reap Province in the north is one of the seven wonders of the world; Sihanoukville in the southwest is a famous seaside leisure resort. resort.

3. The basic situation of Cambodia’s main taxes and rates is as follows:

The main taxes included in the current tax system are: profit tax, minimum tax, withholding tax , payroll tax, value-added tax, property transfer tax, idle land tax, patent Tax, import tax , export tax, special tax, etc.

IV. Regulations on the investment industry

The Cambodian government regards foreign direct investment as the main driving force for economic development. Cambodia does not have a special foreign investment law, and foreign investment and domestic investment are basically treated equally. Its policies are mainly reflected in the " Investment Law " and other relevant legal provisions.

[Fields to encourage investment] Key areas include: innovative and high-tech industries; job creation; export-oriented; tourism; agro-industry and processing industries; infrastructure and energy; provincial and rural development; environmental protection; in accordance with the law Investment in special development zones established. Investment benefits include exemption from all or part of duties and taxes.

[Restricted investment areas] "Implementation Rules of the Investment Law Amendment Act" (issued on September 27, 2005 (Bulletin) lists investment activities that are prohibited for Cambodian and foreign entities, including: production and processing of neurological and narcotic substances; production of toxic chemicals using chemical substances prohibited by international rules or World Health Organization that affect public health and the environment, Pesticides, insecticides and other products; processing and generating electricity using foreign imported waste materials; forest development business prohibited by the Forest Law; other investment activities prohibited by law.

In addition, the detailed rules also list "investment activities that do not enjoy investment preferential treatment" and "specific investment activities that can enjoy exemption from payment of customs duties, but do not enjoy exemption from payment of profit tax."

[Restrictions on foreign citizens] The Investment Law provides for land ownership and use:

(1) Land used for investment activities must be owned by Cambodian natural persons, or legal persons directly holding more than 51% of the shares;

(2) allows investors to use concessions, indefinite long-term leases and renewable Use of land such as short-term rentals. Investors have the right to own real estate and personal property above ground and use it as collateral.

[Mineral Investment] In June 2016, the Cambodian government issued the "Regulations on the Management of Mineral Exploration and Industrial Mining Licenses." According to the regulations, mineral exploration and mining licenses with an area of ​​less than 200 square kilometers must be approved by the Ministry of Mines and Energy; exploration and mining licenses of mining areas with an area of ​​more than 200 square kilometers must be approved by the Royal Government. Any natural person and legal person has the right to apply for exploration of more than one mining area within specified conditions. The license is valid for three years and can be extended twice, each time for two years. Enterprises that have been granted mineral exploration and mining rights by the government must submit new applications for exploration and mining within 180 days, otherwise their licenses will be confiscated.

5. The main procedures for business registration

The environment for economic and trade activities in Cambodia is relatively loose and the business standards are relatively low. You can register in various forms of business organizations such as individuals, partnerships, and companies.

[Registration Application] A director or shareholder of the enterprise should go to the competent authority in person to fill out the registration form and submit an application. The Cambodian Business Registration Bureau can provide registrants with a blueprint of company articles of association. Documents that should be submitted for registration include: registration application form, company articles of association, certificate of authenticity of documents, application for advertising in designated publications, copies and photos of ID cards or passports of all directors or shareholders, directors’ non-criminal record certificates, and equity distribution Decision (if involving natural persons), office location and other documents required by the Ministry of Commerce.

[Registration Approval] After the competent authority accepts the registration application, a registration certificate marked with the registration number will be issued. The certificate will be a temporary certificate within one month from the date of issuance. During this period, if the registrar discovers that the application materials are incorrect, he may raise an objection and revoke the registration number. The registration approval time depends on the situation, usually 1 week. Registration fees vary depending on the form and size of the company.

[Registration Period] The registration certificate is valid for 3 years from the date of registration. Enterprises should apply for a new certificate 30 days before the registration certificate expires. If an enterprise delays applying for a new certificate, it will be considered illegal and its original certificate will be invalid. The enterprise must re-apply for registration and pay relevant fees.

[Open a bank account] A registered company should open one or more bank accounts in a bank in Cambodia.

This article is compiled based on publications of national authoritative departments. It is for learning reference only and is not used as a basis for investment decision-making. It does not assume any legal responsibility.