Opening a corporate bank account in Cambodia.

What are the considerations when choosing a bank?

Each bank in Cambodia provides a wide range of services. However, some banks may offer services that others do not, so there are certain factors you should consider when choosing a bank.

These factors include:

Availability of loans or trade financing
Bank reputation
Minimum deposit requirements
Monthly fees
Online banking features
Services and facilities offered
Interest rates

Available banks in Cambodia

Some banks in Cambodia are:

Opening a corporate bank account for a Cambodian company

A newly incorporated company in Cambodia is required to set up a bank account and provide proof of the existence of the bank account to the General Department of Taxation (GDT). This proof, by way of a letter from the bank, is required to be sent to the GDT within 15 business days of the date that the company is registered with the GDT.

Requirements for opening a business bank account

The documents required to set up the bank account are as follows:

Certificate of incorporation
Constitution or Memorandum & Articles of Association (M&A)
Tax registration (VAT) & Tax Patent registration
ID or Passport & Visa of Shareholders or signatories

Process of opening a corporate bank account

The process for the opening of a bank account can be accomplished very quickly if a director is present in Cambodia to sign all the documents. If not, the process becomes more complicated but can be achieved through the on-the-ground authorised representative.

Every company in Cambodia must have an authorised representative who is resident in Cambodia. If the company has no directors present in Cambodia, the company can appoint the authorised representative to open the bank account for the company.

The authorised representative will need to be the authorised signatory in Cambodia. However, the company can control the operation of the bank account from offshore either through an authentication token or an application accessible through a smartphone that generates a code that is needed to authorise any internet banking transactions.

The process to appoint the authorised representative to open the bank account is for the directors of the company to pass a resolution to that effect.

The original signed copy of the resolution is normally required to be sighted by the bank as part of the account opening process. The authorised representative can then sign all of the necessary account opening forms to get the account established.

Once all the documents are provided to the bank, the account can be set up very quickly, usually within one to two days.

Setting up a corporate bank account for offshore entities

Certain banks in Cambodia will set up an account for an offshore entity, even though that entity has no presence in Cambodia. The process is, however, quite a complicated one.

Extensive KYC (know-your-customer) needs to be performed on the offshore entity by the local bank.

The documents required will be:

Certificate of incorporation
Constitution or M&A
An extract from the companies register in the local country showing the shareholders and Directors of the company
Passport copies of the directors of the company and of the signatories to the bank account
Depending on the structure of the shareholding, details of the shareholders and supporting documents

All of these documents will need to be notarised in the country of residence of the offshore entity. The account opening forms may also require notarisation (depending on the bank the company is dealing with).

Originals of the notarised documents then need to be delivered to the bank in Cambodia. Further notarisation in Cambodia may also be required.

Operating the bank account

Generally, banks in Cambodia have embraced digital banking, and their technology is world-class. Banking transactions can be instigated and approved online, either through an authentication token or a smartphone application. So, it is possible to approve transactions in your Cambodian bank account from offshore.

Fees involved

The fees involved vary depending on the bank, services and features offered. Each bank will have a fee schedule listing all the fees involved, which may include:

Set up fees
Minimum deposit fees
Credit card fees
International transfer fees
ATM withdrawal fees
Early closure fees
Cheque book fees
Internet banking fees

Conclusion

The process of opening a corporate bank account in Cambodia is rather straightforward, provided that your company has a director physically present in Cambodia to sign all documents. Acclime can assist your company in all aspects of opening a bank account in Cambodia and, if required, operating the bank account as well.

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