Insights
Start a Business in Cambodia, or Operate Without One: A 2026 Guide
Insights · By YuDing Wang · Updated 25 October 2026
A foreign business needs its own Cambodian company when it will invoice customers in Cambodia, import or hold goods there, or run a licensed activity. To set one up, most investors register a private limited company or a branch online with the Ministry of Commerce, then register for tax with the General Department of Taxation (GDT) and with the Ministry of Labour and the NSSF before hiring. If you only need people or projects on the ground, you can often start without a company and hire through an employer of record.
Last reviewed in October 2026. Registration steps and sector rules change; confirm the current requirements before you file. General information, not legal or tax advice.
First, do you need a Cambodian company at all?
Start with what you will actually do in Cambodia. The answer usually decides the structure.
| What you plan to do in Cambodia | Do you need your own company? |
|---|---|
| Sign contracts with and invoice Cambodian customers, collect revenue locally | Yes: a private limited company or a branch |
| Import, hold stock, manufacture or run a licensed activity such as tourism, construction or finance | Yes, plus the sector licence |
| Liaison, market research and promotion for the parent company, with no income in Cambodia | A representative office is enough |
| Employ one or a few people for sales development, operations or support while you test the market | No: hire through an employer of record |
| A defined project delivered by an independent professional or firm | No: engage a contractor (see On-Demand Talent) |
| Sell to Cambodian customers from abroad or through a local distributor | Not necessarily; check the tax position with an adviser |
Operating without a company does not remove every obligation. A person working in Cambodia for you still needs a Cambodian employer, and staff who negotiate or sign contracts on your behalf can create a taxable presence (a permanent establishment). Check this before you hire for a revenue-generating role.
How to operate in Cambodia without a company
Hire employees through an employer of record. The EOR is the registered employer in Cambodia: it signs a Khmer–English employment contract, declares the hire to the Ministry of Labour, registers the employee with the NSSF and runs payroll and Tax on Salary, while the employee works on the scope you define. It suits a first hire, a country manager or a small team. See employer of record in Cambodia.
Engage independent contractors. This works for defined projects with deliverables, where the person or firm uses its own tools and sets its own hours. Payments to individuals are subject to withholding tax, and a contractor managed like an employee can claim employee rights. Foreign nationals working in Cambodia need a work permit either way; see Expat Employment in Cambodia.
Sell through a distributor or agent. A local partner holds the licences, stock and customer contracts, and you supply it from abroad.
Many companies start with an EOR and register a company once the Cambodian business is proven. The employees can then move to the new company on an agreed date. How to hire employees in Cambodia covers the employment rules either way.
If you do set up: choose the structure
| Structure | What it can do | Points to check |
|---|---|---|
| Private limited company | Trade, invoice, hire and hold most licences. 100% foreign ownership is allowed in most sectors | The company cannot own land if it is majority foreign-owned; some sectors are restricted or need a licence |
| Branch of a foreign company | Carry on the parent’s business in Cambodia | The parent company is liable for the branch’s obligations |
| Representative office | Liaison, market research and promotion; can employ local staff | Cannot trade or earn income in Cambodia |
Projects that want investment incentives, such as tax holidays or duty exemptions, can apply to the Council for the Development of Cambodia (CDC) for Qualified Investment Project status under the 2021 Law on Investment.
The 7 steps to register a business in Cambodia
- Check sector rules. Confirm whether the activity is restricted for foreign investors or needs a licence from a line ministry before you register.
- Prepare the documents. Passports of shareholders and directors, parent company documents for a branch or representative office (often notarised and translated), the registered address in Cambodia and the articles of incorporation.
- Register with the Ministry of Commerce. File through the government’s online business registration platform, which also reserves the company name.
- Register for tax. The same online process links to the General Department of Taxation for the tax identification number, the patent tax certificate and VAT registration.
- Open a bank account. Open a corporate account in Cambodia; banks carry out their own checks on the shareholders and directors.
- Register as an employer before the first hire. Register the enterprise and declare each employee to the Ministry of Labour through LACMS, and register with the NSSF. Companies with 8 or more workers also need registered internal work rules.
- Obtain licences and set up compliance. Apply for any sector licence, then file monthly tax returns, keep the LACMS payroll book and prepare the annual tax return.
What it takes to run a Cambodian company
A company creates recurring work: monthly tax returns and payments to the GDT, annual tax filings, bookkeeping under Cambodian accounting standards, renewal of the patent tax certificate, and, once you employ people, twice-monthly payroll, monthly NSSF contributions, LACMS reporting and the annual foreign-worker quota if you hire foreign staff. Budget for a local accountant or provider from the start.
For employment rules in detail, see the Cambodia employment law guide.
Questions about starting a business in Cambodia
Can a foreigner own 100% of a company in Cambodia?
Yes, in most sectors. A company that is more than 49% foreign-owned cannot own land, and some activities are restricted or need a licence, so check your sector before registering.
Do I need a Cambodian company to hire employees in Cambodia?
You need a Cambodian employer, but it does not have to be your own company. An employer of record can employ the person, declare the hire to the Ministry of Labour, register them with the NSSF and run payroll for you.
Can a representative office hire staff?
Yes. A representative office can employ local staff for its permitted activities, such as liaison and market research, but it cannot trade or earn income in Cambodia.
How long does company registration take in Cambodia?
Online registration with the Ministry of Commerce and the GDT can be quick once documents are complete. Foreign documents that need notarisation and translation, bank account opening and sector licences usually take the most time.
Can I move from an EOR to my own company later?
Yes. When your company is registered and set up as an employer, the employees can move to it on an agreed date, with their service and accrued rights handled correctly.
Want people in Cambodia before you set up a company?
NNRoad can employ your first hires in Cambodia and run the contract, payroll, NSSF and Tax on Salary, so you can start now and decide on a company later.
Related
The full process, from offer to final pay.
Hire without a Cambodian company.