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Registering a Business

Registering a business in Cambodia


Before you register a business in Cambodia, you will first need to decide which type of registration/legal entity is best for you and your business.

Sole Proprietorship

Most people opening small businesses will opt for the cheaper option which is the “Sole Proprietorship” registration. A sole proprietorship is owned and operated by a single person and he/she is liable for everything the business does but he/she is entitled to all of its profits.

Private Limited Company

A private limited company (PLC) is a legal entity which is separate from its shareholders. This basically means if the PLC ever had any problems with company debts then the shareholders are not legally liable for them. A PLC can have between two and thirty shareholders of the company.

 

Single Member Company

A single member company is a private limited company but it only has one shareholder. And, as the single member company is a PLC then it has the same advantages as the normal private limed company.

 

General Partnerships

General partnerships are whereby one or more persons would like to do business together. To form a general partnership then contract is drawn up between the partners. All partners in a general partnership are liable for any debts incurred by the business.


Limited Partnerships

Limited partnerships are for whereby you have one or more general partners and then one partner who is classed as a limited partner who is often the main investor in the business. This is where the limited partner is not liable for any debts incurred by the business but the general partners would be.   

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