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This is a fundamental guide on a representative office in Cambodia.
Setting up a representative office in Cambodia is an option for foreign companies that want to establish a wholly-owned presence here. However, there are specific restrictions that apply to representative offices.
Continue reading to find out more about representative offices.
What is a representative office?
A representative office can be set up to gain a presence in a new market and promote the products and services of the foreign parent company.
What activities can representative offices conduct?
The representative office cannot engage in trade or provide services, sell, purchase, manufacture, process or construct in Cambodia.
Representative offices are permitted to perform the following activities:
- Contacting customers and introducing customers to the parent company
- Researching commercial information and providing information to the parent company
- Conducting market research
- Market goods at trade fairs and exhibit samples and goods in offices or trade fairs
- Rent an office and employ local staff
- Enter contracts with local customers on behalf of the parent company
Documents needed to register a representative office
To register a representative office in Cambodia, you will need the following documents:
- Land title or lease agreement of the enterprise’s location
- Current photo of no longer than three months of director with white background
- National identification card of director
- Parent company’s articles of association
- Parent company’s certificate
- Letter of appointment of director of representative office
- Reference document (can be a letter specifying an already-existed company’s permission to use a similar company name, special licenses and related documents)
- Authorization letter if the one who fills out the application is your representative
- Proof of paid property tax or property information of the enterprise
- Details of the premises out of which the representative office will operate
Representative office registration steps in Cambodia
Step 1: Choosing a name
The name of the representative office must be the same as the parent company and have the words Commercial Representative office or Commercial Relations Office in front of or above the name. The name should be in the Khmer language and can also be in another language (usually English).
Once you have decided on a name, you must reserve the name and the reservation will be two weeks and can be extended by making another payment to reserve the company name for another two weeks. To reserve a company’s name, the name application must be submitted to the online company registration services.
Step 2: Registering with the CamDX
After a name approved, you must then submit the required documents and completion the registration form in CamDX’s online system.
Upon confirmation, a Certificate of Registration will be issued.
Step 3: Opening a corporate bank account
After receiving the Certificate of Registration, you will need to open a corporate bank account.
The basic documents you will need to open a business bank account are:
- Certificate of Registration
- Resolution of the board of directors to open the account
- Business tax patent (if any)
- Original and copy of identification card or passport of all authorised signatories, shareholders and directors
Some banks in Cambodia you may consider are:
- ACLEDA Bank
- Canadia Bank
- ABA Bank
- Bred Bank
- Vattanac Bank
- Maybank Cambodia
Step 4: Tax registration
Tax registration must be made within 15 days of registering your branch office and uploading your bank confirmation letter, which can be done at the single window service website.
Step 5: National Social Security Fund registration
A representative office with at least one employee must apply for labour registration with the Ministry of Labour and Vocational Training. Registration with the National Social Security Fund is also required, and employers are to make monthly NSSF contribution payments.
The minimum monthly salary to calculate the contribution is KHR 200,000, and the maximum is KHR 1.2 million.
Representative offices in Cambodia can only engage in activities that represent and promote the products or services of the foreign company. If you are interested in establishing a representative office of your company in Cambodia, please contact Acclime for support.
Acclime helps established multinational companies and startups start and operate their business in Cambodia and beyond. By seamlessly navigating our clients through the complexities of the local regulatory systems, we maximise opportunities while ensuring compliance and good governance.