Setting up a branch office in Cambodia

Expanding into Cambodia through a branch office can be an effective way for foreign companies to establish a direct presence in the country while maintaining strong ties to their parent organisation. Cambodia’s rapidly developing economy, strategic location within ASEAN and pro-investment policies make it an attractive destination for businesses seeking regional growth. However, setting up a branch office involves understanding specific legal, regulatory and operational requirements.

This guide outlines the key features, requirements and procedures involved in establishing a branch office in Cambodia. It also highlights compliance obligations and updates based on the latest regulatory developments.

What is a branch office?

A branch office is an extension of a foreign company operating in Cambodia. It is not a separate legal entity, meaning the foreign parent company is fully liable for the debts, obligations and legal responsibilities of the branch.

The branch must operate under the same name as the parent company, with the word Branch either preceding or appearing above the name. The name should be in Khmer, though an English version is typically also used for international dealings.

Permitted activities for a branch office

Branch offices are permitted to engage in commercial activities, including but not limited to:

• Buying and selling goods
• Manufacturing and processing
• Construction services

However, branch offices cannot undertake Qualified Investment Projects (QIPs), special investment ventures eligible for tax incentives in Cambodia. To participate in a QIP, businesses must establish a separate legal entity registered in Cambodia, such as a limited liability company.

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Required documents for branch office registration

To register a branch office in Cambodia, a company must prepare and submit the following documents:

• Land title or lease agreement for the business premises
• A current passport-size photo (within the last three months) of the appointed branch director with a white background
• National ID card or passport of the director(s)
• Articles of Association of the parent company
• Certificate of Incorporation or business licence of the parent company
• Official letter of appointment for the branch director
• Reference documents (e.g. name usage permission, required special licences)
• Authorisation letter (if a third party is handling the application)
• Proof of tax payment or property-related documents of the enterprise

Step-by-step registration process

Step 1: Name reservation

The branch office name must match that of the parent company, with Branch added appropriately. Names must be submitted in Khmer and may include an English version. To secure the name, it must be reserved through the online company registration portal, and the reservation will remain valid for two weeks, with the option to extend it upon additional payment.

Step 2: Register the branch office
Following name approval, the company must submit the completed application and supporting documents via CamDX’s online system. Upon approval, the Ministry of Commerce will issue a Certificate of Incorporation.

Step 3: Open a business bank account
Once registered, the branch must open a corporate bank account in Cambodia and submit the bank account information to the tax office within 15 days upon tax approval date.

Common banking institutions include ABA Bank, ACLEDA Bank, Canadia Bank, BRED Bank, CIMB, Vattanac Bank and Maybank Cambodia.

Subject to each bank policy and requirements, the following documents are typically required to open the account:

• Certificate of Incorporation
• Resolution authorising the account opening and signatory, as necessary
• Patent tax certificate
• Identification or passports of all authorised signatories

Step 4: Tax update registration
The GDT will require a physical meeting within 30 days of the incorporation of the branch with the branch director. The process involves identity verification, including photo taking and fingerprint scanning.

Step 5: Register with the National Social Security Fund (NSSF)
The company is required to register the branch office with both the Ministry of Labour and Vocational Training and the National Social Security Fund (NSSF). This step ensures compliance with labour laws and enables monthly social security contributions for employees.

Conclusion

Establishing a branch office in Cambodia provides foreign companies with a practical and compliant pathway to enter the local market and conduct business operations. While it does not grant access to tax incentives reserved for incorporated entities, it is suitable for companies seeking to carry out direct commercial activities without setting up a new legal structure.

With Cambodia’s growing emphasis on digital registration systems and streamlined tax processes, the administrative burden has been significantly reduced. However, careful attention must be paid to regulatory compliance, especially regarding tax registration, labour laws, and social security obligations.

How Acclime can help with setting up a branch office in Cambodia

Acclime Cambodia offers complete support for branch office registration and business compliance. From name reservation to ongoing tax and social security registrations, our team of experts can assist with everything from preparing required documentation to managing regulatory requirements. By partnering with us, foreign companies can confidently establish and operate a compliant branch office in Cambodia. Contact us to learn more about how we can support your business expansion and local compliance needs.