Unlock growth in Cambodia: A growing hub for trade, talent, and opportunity.
With pro-business policies, competitive tax rates, and strong infrastructure, Cambodia is emerging as a key hub for business expansion in Southeast Asia. Its rapidly growing economy, strategic ASEAN access, and cost-effective workforce make it attractive to startups and global enterprises alike.
However, setting up a company in Cambodia has some legal, tax, and administrative hurdles. An Employer of Record (EOR) offers a hassle-free alternative. With an EOR, you can hire talent and start operating immediately—without entity registration—effortlessly tapping into Cambodia’s dynamic economy and thriving business landscape.
The business benefits of registering your company in Cambodia
Expanding into Cambodia presents significant advantages for businesses looking to tap into a rapidly growing economy. With a strategic location in Southeast Asia, investor-friendly tax policies, and a competitive labor market, Cambodia offers a compelling environment for startups and multinational corporations alike. Companies benefit from full foreign ownership, low operational costs, and increasing regional trade opportunities. Below are the key benefits of setting up a company in Cambodia:
- Strategic location and access to ASEAN markets
- Member of ASEAN, providing free trade and investment access to 10 Southeast Asian economies.
- Bilateral trade agreements with China, South Korea, and other global markets.
- Expanding infrastructure, including new airports, roads, and ports for enhanced connectivity.
- Attractive tax policies and business incentives
- Corporate tax: 20% (lower for SMEs and incentivized industries).
- Value-Added Tax (VAT): 10% standard rate, with exemptions for exports and select sectors.
- Tax holidays: Up to 9 years for businesses qualifying as a Qualified Investment Project (QIP).
- Repatriation benefits: No restrictions on profit repatriation for foreign investors.
- Additional tax exemptions and incentives for priority sectors like manufacturing, tourism, agriculture, and technology.
- Skilled and cost-effective workforce
- Among the lowest wage rates in Southeast Asia, offering a cost-effective labor market.
- Growing pool of skilled professionals in manufacturing, technology, and services.
- English proficiency is common in business and technology sectors.
- Ease of doing business and full foreign ownership
- 100% foreign ownership permitted in most industries.
- Simplified business registration process, allowing companies to be set up in weeks.
- No foreign exchange controls, enabling businesses to operate in USD or Khmer Riel (KHR).
Cambodia presents a dynamic environment for business expansion, but regulatory complexities may require expert assistance. For companies looking to enter the market swiftly while minimizing legal burdens, an Employer of Record (EOR) provides a faster, more flexible alternative.
What is the difference between standard company registration and Employer of Record (EOR) in Cambodia?
Companies expanding to Cambodia have two primary options: traditional company registration or using an Employer of Record (EOR).
Aspect | Standard company registration | Employer of Record (EOR) |
Purpose | Establishes a legal entity for full business operations. | Enables companies to hire employees without a legal entity. |
Control | Full control over business activities and hiring. | Limited control—EOR manages legal employment and compliance. |
Cost | Higher initial costs for registration, office setup, and taxes. | Lower costs—no incorporation fees or administrative expenses. |
Compliance | Must adhere to Cambodian tax laws, labor regulations, and reporting requirements. | EOR handles all legal, tax, and employment compliance. |
Setup time | Can take weeks or months. | Can be set up within days. |
Scalability | Ideal for long-term expansion but less flexible for rapid changes. | Highly scalable—hire, expand, or exit easily. |
Which option is best for your business?
- Choose standard company registration if you plan to establish a permanent presence, require operational control, and have multiple employees.
- Opt for an EOR if you need fast, low-risk market entry, want to hire employees quickly, and wish to avoid administrative complexities.
Let’s explore how this solution simplifies expansion while optimizing time and resources.
How an EOR simplifies Cambodia company registration
An Employer of Record (EOR) enables businesses to hire employees in Cambodia without establishing a local entity. The EOR manages payroll, compliance, and HR, allowing companies to focus on operations and growth.
- Quick market entry: Hire employees in Cambodia within days.
- Payroll and tax compliance: Handle salaries, tax deductions, and social security seamlessly.
- Full regulatory adherence: Meet Cambodia’s labor laws without in-house legal complexities.
- Cost savings: Eliminate registration, legal, and administrative costs.
- Scalable workforce: Expand or downsize flexibly without long-term liabilities.
For businesses looking to hire in Cambodia efficiently while minimizing compliance risks, an EOR is an ideal solution.
Next, we’ll walk you through the step-by-step process of registering a company in Cambodia.
A step-by-step guide to company registration in Cambodia
If you choose to establish a legal entity, here’s how to register a company in Cambodia:
Step 1: Choose your business structure
- Private Limited Company (Ltd.): Most common structure; requires at least one shareholder and director.
- Public Limited Company: Suitable for large-scale businesses with multiple investors.
- Branch Office: Operates under a foreign parent company.
- Sole Proprietorship: For small businesses and individual entrepreneurs
Step 2: Reserve a business name
- Check name availability with the Ministry of Commerce.
- Register the name online through the Business Registration Portal
Step 3: Prepare and submit required documents
To officially register your company, you’ll need to submit the following documents:
- Articles of Incorporation and Company Constitution.
- Identification documents of shareholders and directors.
- Proof of a registered business address in Cambodia.
Step 4: Register with authorities
- Submit documents to the Ministry of Commerce for business incorporation.
- Obtain a Tax Identification Number (TIN) from the General Department of Taxation.
- Register for VAT if applicable.
Step 5: Open a business bank account
- Provide company registration details and shareholder identification.
- Recommended banks: ABA Bank, ACLEDA Bank, Canadia Bank.
Step 6: Obtain business licenses and permits
- Industry-specific permits may be required (e.g., tourism, finance, construction).
- Check with relevant government agencies for sector-specific regulations.
Step 7: Set up payroll and HR compliance
- Ensure compliance with Cambodia’s labor laws, minimum wage requirements, and employment benefits.
- Using a payroll provider like Multiplier can streamline tax deductions and salary payments.
The next crucial step is to evaluate the costs involved. Let’s break down the expenses associated with registering a company in Cambodia.
The real cost of registering a business in Cambodia
Understanding the financial requirements of company registration in Cambodia is essential for budgeting and long-term planning. Below is a breakdown of the key costs:
Registration and initial setup costs
- Company registration fee: $500–$2,000 (varies based on business type and legal services).
- Notary and legal fees: $200–$1,500 for document certification and incorporation assistance.
- Company stamp and seal: $50–$100 (required for official business transactions).
Minimum share capital requirements
- Private Limited Company (Ltd.): No fixed minimum capital, but a recommended operational budget of $5,000–$10,000.
- Public Limited Company: Requires a higher minimum capital (varies based on industry and regulations).
- Branch Office: No capital requirement but must provide financial statements from the parent company.
Annual maintenance and compliance costs
- Business license renewal: $100–$500 annually, depending on the industry.
- Registered business address: $500–$2,000 per year for office space (virtual or physical).
- Annual tax filing and reporting: $300–$1,500 for compliance and financial reporting services.
- Accounting and bookkeeping services: $100–$500 per month, depending on transaction volume.
- VAT compliance and filings: $500–$2,000 per year for businesses subject to VAT.
Payroll, taxes and social contributions
- Corporate tax: 20% on net profits.
- Value-Added Tax (VAT): 10% standard rate (with possible exemptions for exports and certain sectors).
- Employer social contributions: Approximately 3%–5% of an employee’s gross salary, covering:
- National Social Security Fund (NSSF)
- Health and pension contributions
- Other mandatory benefits
- Payroll processing fees: $50–$200 per employee per month (if outsourced).
For businesses that want to test the Cambodian market, an Employer of Record (EOR) is a cost-effective alternative to full company registration, eliminating many of the above expenses while ensuring full compliance with local labor laws.
Comparing costs: Legal entity registration vs. Employer of Record (EOR)
For businesses looking for a cost-effective and low-risk market entry, an EOR offers a streamlined alternative to traditional company registration. Below is a cost comparison between the two options:
Cost category | Standard company registration | Employer of Record (EOR) |
Setup and registration fees | $500–$2,000 (includes legal, notary, and registration fees) | $0 (No registration needed) |
Minimum share capital requirement | No fixed requirement, but recommended $5,000–$10,000 for operational funding | $0 (No capital required) |
Business address and office costs | $500–$2,000 per year for virtual or physical office space | Included in EOR service |
Legal and compliance costs | $1,000–$5,000 per year | Included in EOR service |
Payroll and HR administration | $50–$200 per employee per month | Included in EOR service |
Accounting and bookkeeping | $100–$500 per month | Included in EOR service |
VAT and tax filing | $500–$2,000 annually | Included in EOR service |
Employee benefits and social security contributions | 3%–5% of an employee’s gross salary (paid by employer) | Handled by EOR provider |
Scalability and market exit | High costs and legal complexity | Easy entry and exit without liabilities |
For businesses looking to minimize risk, reduce administrative costs, and enter the Cambodian market quickly, an EOR provides a flexible and cost-effective solution compared to full company registration.
Next, let’s explore how partnering with an EOR can simplify your entry into Cambodia and accelerate your business growth.
Choose Multiplier for your Cambodia expansion
Expanding your business into Cambodia comes with exciting opportunities but also complex legal, tax, and compliance challenges. With Multiplier’s Employer of Record (EOR) solution, you can hire top talent, manage payroll, and stay compliant—without the hassle of setting up a legal entity. Our platform streamlines global expansion, so you can focus on growing your business while we handle the rest.
Why choose Multiplier as your partner of choice for Cambodia:
- Local hiring expertise: Easily hire top talent in Cambodia with fully compliant employment contracts, local tax filings, and a seamless onboarding process.
- Effortless payroll management: Ensure accurate, on-time salary payments, automated tax deductions, and social security contributions, while staying 100% compliant with Cambodian labor laws.
- Comprehensive HR solutions: Manage onboarding, expense tracking, time-off requests, and employee benefits in one user-friendly platform.
- Compliance assurance: Navigate Cambodia’s labor laws, tax codes, and social security regulations with ease, reducing legal risks and administrative burdens.
- Attractive benefits packages: Offer locally tailored healthcare, pension plans, and perks to attract and retain top talent in Cambodia.
- Reliable support: Get dedicated customer support and enjoy the security of enterprise-grade compliance and data protection.
Let Multiplier handle the complexities of your Cambodia expansion, so you can focus on what matters—scaling your business successfully.
Book a demo today to learn how Multiplier can simplify your global hiring strategy in Cambodia!
