Can a foreign investor own 100% of a Cambodian company?
Yes, in most sectors. Restrictions apply to listed activities and to land ownership. A company with more than 49% foreign ownership cannot own land.
MLV LAW GROUP
A practical guide for foreign investors to choosing, registering and maintaining a business vehicle in Cambodia.
Last reviewed: 4 October 2026
This page is general information, not legal advice. Requirements and administrative practice change; timelines are typical estimates rather than guarantees.
Business registration in Cambodia has changed significantly over the past year. Investors and existing companies should note:
A Cambodian private limited company is the standard vehicle for most foreign-invested operating businesses. Foreign investors may hold 100% of the shares in most sectors (see Foreign ownership and land below). The right structure depends on ownership, activities, financing, licensing and exit plans.
| Feature | Private limited company | Single-member private limited company | Foreign branch | Representative office |
|---|---|---|---|---|
| Legal personality | Separate Cambodian legal entity | Separate Cambodian legal entity | None; an extension of the foreign parent | None; an extension of the foreign parent |
| Owners | 2 to 30 shareholders | One shareholder | Foreign parent company | Foreign parent company |
| Liability | Limited to the shareholders' capital | Limited to the shareholder's capital | Parent is responsible for the branch's obligations | Parent is responsible for the office's obligations |
| Commercial activity | Permitted, subject to licensing | Permitted, subject to licensing | Permitted, subject to licensing and sector rules | Market research and liaison only; generally no income-generating activity |
| Capital | MOC in practice requires at least KHR 4,000,000 | As for a private limited company | No share capital | No share capital |
| Audit | Required only if size or sector criteria are met | As for a private limited company | Independent audit mandatory (ACAR Prakas No. 063) | Annual MOC filings still apply |
| Typical use | Most operating businesses and joint ventures | Wholly owned subsidiaries | Foreign company operating directly in Cambodia | Pre-investment presence |
Other forms exist under the Law on Commercial Enterprises, including the public limited company, the general and limited partnership, and the sole proprietorship. They are less commonly used by foreign investors.
Cambodian law has no separate SPV legal form. An SPV is an ordinary company under the Law on Commercial Enterprises, usually a private limited company or single-member private limited company, whose articles and agreements confine it to one project, asset or relationship. It is registered, taxed and maintained in the same way as any other company.
Business ownership. Cambodia's investment regime is open, and 100% foreign ownership is permitted in most sectors. Certain activities are prohibited to foreign investors or require Cambodian participation under the investment regulations' negative list, and some sectors have their own licensing or ownership rules. These should be checked before the structure is settled.
Land**. Under Article 44 of the Constitution, only Cambodian natural persons and Cambodian legal entities may own land. A company is a Cambodian legal entity for this purpose if at least 51% of its shares are held by Cambodian nationals or Cambodian legal entities. Foreign investors can therefore hold up to 49% of a land-holding company. Only the shareholdings stated in the articles count, and private agreements contrary to the 51% requirement are void. Alternatives include long-term or perpetual leases, economic land concessions, and, for buildings, ownership of up to 70% of the private units in a co-owned building above the ground floor.
Nominee risk. Arrangements in which a Cambodian person holds shares or land on behalf of a foreign investor to avoid ownership restrictions carry serious legal risk. Side agreements, pledges and powers of attorney may not be enforceable, and the foreign investor may have no effective remedy if the nominee acts against its interests. We advise on lawful alternatives, including structured 51/49 companies with appropriate governance protections, leases and trust arrangements, and on the risks of each.
Since 2020, registration with the MOC, the General Department of Taxation (GDT) and the Ministry of Labour and Vocational Training (MLVT) has been made through one combined online application. The government states that business registration, tax registration and the labour notifications are issued within 8 working days where the application and documents are correct and complete.
Agree the vehicle, shareholders, directors, company secretary, share capital and business objectives. Check whether any proposed activity falls within a sector needing prior approval-in-principle before registration (see Sector licences below).
The person filing needs a CamDigiKey account, Cambodia's government digital identity, to log in. Accounts are created through the CamDigiKey app using identity verification. For companies (other than sole proprietorships), an applicant who does not file personally must use an accredited agent.
All documents are uploaded as clear scans of originals (PDF; photos in JPG). Incomplete or illegible documents can lead to rejection, and fees paid are not guaranteed to be refunded.
The application covers MOC business registration, GDT tax registration and MLVT notification of the opening of the enterprise. Government fees are paid online.
Approved certificates are downloaded from the portal and can be verified through verify.gov.kh. Hard-copy articles no longer need to be lodged with the MOC.
Submit the company's bank account information to the GDT within 15 working days after tax registration approval; otherwise the tax registration is withdrawn. The GDT will also invite the company's tax representative to attend for photographs and fingerprints, generally within 30 days of the invitation.
Open the corporate bank account (bank KYC requirements vary), then complete NSSF and other labour steps (see Labour onboarding below).
Documents issued abroad may need certification, legalisation and Khmer translation. We confirm the requirements for each document before filing. Online submissions are filed through the businessregistration.moc.gov.kh portal.
The government processing period for the combined MOC, GDT and MLVT registration is 8 working days once a complete application is filed. The overall timetable is usually driven by other factors:
Because these factors differ for each business, we do not publish standard timelines. We confirm the expected timetable for your matter in our service proposal.
A formation budget should allow for:
We do not publish fixed fees or fee ranges. Each matter is priced individually: once we understand your business, ownership and activities, we issue a written service proposal (quotation) setting out the scope of work, our fees and the expected timetable.
| Obligation | Authority | When |
|---|---|---|
| Monthly tax returns and payments (e.g. salary tax, withholding tax, VAT) | GDT | Monthly, by the deadline in the tax rules (online filing by the 25th of the following month) |
| Patent tax renewal | GDT | By 31 March each year |
| Annual tax on income return | GDT | Within 3 months after the end of the tax year (31 March for a calendar year) |
| Annual Declaration of Commercial Enterprise (ADCE) | MOC | Window opens 3 months before the anniversary of incorporation and closes 15 days after it |
| Annual financial statements | Accounting and Auditing Regulator (ACAR) | Within 3 months and 20 days of year-end (unaudited) or 6 months and 20 days (audited), under Prakas No. 063 of 18 August 2026 |
| Foreign manpower quota for the following year | MLVT (FWCMS) | Annual window; for 2027, 1 September to 30 November 2026 |
| Work permit renewals | MLVT (FWCMS) | Annually, by the deadline the MLVT sets |
| NSSF contributions | National Social Security Fund | Monthly |
| Corporate changes and company secretary details | MOC | Through the online system when they occur |
| QIP Certificate of Compliance | CDC | Annually, for QIPs only |
ADCE penalties and inactive status. Late ADCE filing attracts a penalty of KHR 2,000,000 per year. An entity that fails to file for three consecutive years is classified as "inactive", and its shareholders and directors are placed on the MOC watch list, which bars them from MOC services, including new registrations and corporate changes, until the position is regularised. The ADCE applies to companies, foreign branches and representative offices.
Company secretary. Prakas No. 117 requires every company to appoint a company secretary and record the appointment with the MOC. Following Prakas No. 044, any individual may be appointed (unless specific laws restrict this), the former security deposit for professional company secretaries no longer applies, and company-secretary details are filed and updated online free of charge.
ACAR penalties. Late filing of financial statements attracts a penalty of KHR 2,000,000 per month of delay, up to KHR 12,000,000 per accounting period for enterprises.
Under Prakas No. 044, companies may generally choose their business objectives freely. However, the following regulated sectors need prior approval-in-principle from the competent authority before MOC registration can be completed:
Many other activities need a licence or permit from a line ministry or local authority after registration, and some licences must be renewed periodically. We prepare a licence map for each business so that every approval is identified before operations begin.
Corporate changes. Changes to the company name, registered office, business objectives, directors, shares, capital and similar particulars must be registered through the MOC online system. Filings generally require a shareholder resolution, a request letter, any required ministry approval and identification for new individuals. New individual shareholders and directors are subject to background checks through the system. Share transfers involving corporate shareholders carry additional document-certification requirements.
Dissolution. A company must first settle its tax obligations, complete a tax audit and obtain a Certificate of Tax Clearance from the GDT. Dissolution and deregistration are then filed through the online system, generally with a shareholder resolution, liquidation report, closing report and the appointment letter of an ACAR-licensed auditor. The closure must also be declared to the MLVT within 30 days.
Royal Decree No. NS/RKT/0926/918 of 26 September 2026 established an SME Facilitation Unit attached to the Office of the Council of Ministers, as a single window for SME registration, licence and permit applications. The unit was still in preparation as at 4 October 2026, and whether foreign-owned SMEs may use it has not been announced. Until it opens, registration continues through the channels described on this page.
Yes, in most sectors. Restrictions apply to listed activities and to land ownership. A company with more than 49% foreign ownership cannot own land.
The statutory default minimum was removed in 2022, but in practice the MOC continues to require registered capital of at least KHR 4,000,000 (about USD 1,000). Some regulated sectors set higher capital requirements.
The government processing period is 8 working days for a complete application. Document preparation, sector approvals, banking and work permits usually determine the overall timetable.
Registration is online, and CamDigiKey accounts are created through an app. Some steps may require attendance in person, such as the GDT tax-representative formalities and, depending on the bank, account opening. We confirm what applies in each case.
Not for the validity of its documents: under the Law on Commercial Enterprises, a document signed for the company is not invalid merely because no seal is affixed. Many companies still use a seal in practice. Any seal used must show the company's Khmer name.
Yes. Prakas No. 117 requires every company to appoint one and record the appointment with the MOC. Prakas No. 044 relaxed the eligibility rules.
Submit a Request for Account Ownership through businessregistration.moc.gov.kh using a CamDigiKey login. Until then, the company cannot make online MOC filings, including the ADCE and corporate changes.
A penalty of KHR 2,000,000 applies for each year of late filing. After three consecutive missed years, the company becomes "inactive" and its shareholders and directors are placed on the MOC watch list.
Yes. Cambodia has no separate SPV legal form, but an ordinary private limited company (or single-member company) can be set up for a single project, asset or joint venture, and registered through the same online process. Specific rules apply to special purpose companies in PPP projects and to SPVs used for infrastructure bonds and REITs. An SPV does not remove land-ownership limits or nominee risk.
We do not recommend it. Nominee arrangements to avoid ownership restrictions carry significant legal risk and may leave the foreign investor without an enforceable remedy. Lawful alternatives are available.
Share the details of your case, such as your proposed business activities, shareholders and directors, preferred vehicle and target start date, and we will review them and send you a tailored service proposal setting out the recommended approach, scope of work, fees and timetable.
This page is general information on Cambodian law and practice as at 4 October 2026. It is not legal advice and does not create a lawyer–client relationship. Laws, prakas, notifications and administrative practice change, and requirements vary by business. Timelines are estimates, not guarantees. An engagement letter is required before MLV Law Group acts on any matter.