Ministry of Commerce rolls out new reforms to simplify business life in Cambodia

Cambodia’s Ministry of Commerce has announced a major package of reforms designed to make doing business easier, faster, and more transparent across the country. The ministry introduced three key initiatives that focus on simplifying business registration, modernizing how public service payments are made, and temporarily waiving penalties for companies that have fallen behind on filing their annual declarations. The announcement, shared on the MoC’s official Facebook page under the title ‘Simplification and Modernization of Public Services for Business Registration’, signals a clear push by the government to create a more attractive and efficient business environment for both local and international companies.

Three new initiatives aim to remove red tape and boost efficiency

According to the Ministry of Commerce, the reform package includes the Simplification of Business Registration, the Modernization of Public Service Payments, and the Waiver of Penalties for Companies Failing to File Annual Declarations. Together, these measures are meant to reduce unnecessary paperwork, shorten processing times, and make it easier for businesses to stay compliant with regulations. The ministry said these steps are expected to make procedures more convenient and efficient, helping to support the creation of a better business environment nationwide.

A new Prakas streamlines how companies register and operate

At the heart of the reform is a new Prakas on the Simplification of Business Registration, which is made up of 12 chapters and 35 articles covering everything from applying for a company registration form to registering amendments, opening local branches, and even dissolving a company. It also includes rules for filing annual reports, managing company agencies, handling complaints under the ministry’s authority, and paying service fees. The first part of the Prakas focuses on cutting down procedures and document requirements by simplifying complex paperwork and reducing the time it takes to register a local branch. This has been achieved by moving from paper based systems to electronic registration, streamlining approval processes, and offering new options for issuing formal registration documents.

Digital tools bring Cambodia’s business registry into the modern era

The second part of the Prakas looks toward the future by modernizing commercial registration through better corporate governance, online background checks, and the introduction of the verify.gov.kh system, which replaces traditional document verification with QR codes. Digital signatures are now recognized on application documents, and a new complaint service has been introduced to help prevent improper share transfers. These changes aim to make the system more secure, transparent, and aligned with international standards.

Online payments make government services quicker and easier

To further support businesses, the Ministry of Commerce has partnered with Advanced Bank of Asia Ltd and Acleda Bank Plc to integrate online payment systems into their mini applications. This allows companies to pay for services such as annual declarations and the enforcement of protection orders directly through ABA and Acleda apps. The ministry plans to expand these services to other banks soon, making commercial transactions faster, more convenient, and fully digital for a wider range of users.

Temporary fine waivers offer relief for noncompliant companies

Another important part of the reform is the waiver of penalties for companies that failed to file their annual declarations and would normally face a fine of 2 million riel per year, or about $500. Many businesses had asked for relief, and in response the Ministry of Economy and Finance and the Ministry of Commerce agreed to waive fines for only the most recent year. To qualify, companies must meet two conditions. First, they must pay the penalty for the previous year within 60 working days starting from January 8. Second, they must take part in the shareholder background check process, which supports anti money laundering efforts.

Noncompliance could lead to inactive status and legal consequences

Companies that do not meet these conditions or fail to make the required payment will be classified as an ‘Inactive Company’. This status could affect their business registration and other legal rights under existing laws and regulations, making it harder for them to operate or expand in the future.

Conclusion

Taken together, these reforms show a strong commitment by the Ministry of Commerce to modernize Cambodia’s business environment and make it more competitive. By reducing red tape, embracing digital systems, and offering temporary relief to struggling companies, the government is sending a clear message that it wants to support growth, improve compliance, and make Cambodia a more attractive place to do business.

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Prime Minister Hun Manet held discussions with South Korean ambassador to Cambodia Park Jung-wook on August 13. Manet travelled to South Korea in May of this year to meet with South Korean President Yoon Suk Yeol and other senior officials, as well as several high-level members of the South Korean business community.

Since assuming the role of prime minister, Manet has tried his best to attract foreign investment to Cambodia.

He first travelled to China, and then Vietnam, Thailand, France, Malaysia and South Korea to address his strong commitment to attracting foreign investors and to share Cambodia’s position on various issues that are affecting the global community.

Among the ASEAN nations, South Korea has the strongest relations with Vietnam and Indonesia, with Vietnam having the largest exchange of trade. At present, Cambodia and Laos have less of a relationship with Seoul’s powerful economy.

Following the May visit, Manet and President Yoon Suk Yeol signed off on a strategic partnership, the most recent to be introduced by the Kingdom.

South Korea is very important to Cambodia as it welcomes many Cambodian workers and provides education opportunities for the Kingdom’s students and officials, providing high salaries and excellent qualifications.

During Manet’s August 13 meeting with the ambassador, four main points were discussed, with a view to ensuring they will be beneficial to both sides.

The four agenda items were trade and investment, national defence and security, tourism, and people-to-people exchanges between the two countries.

Cambodia should pay close attention to South Korea, as it represents large business opportunities and is also a strong military power, ranked number five in the world.

The four discussion points that the two sides discussed require serious action by the Cambodian government.

It must take note of the fact that the Kingdom welcomes few Korean tourists, and also that there are far fewer South Koreans doing business in Cambodia than in Vietnam.

The first step is to guarantee the continued safety and security of the South Korean diplomats and businesspeople who are in Cambodia right now, as they will share the circumstances on the ground in the Kingdom, thus ensuring the news reaches their fellow countrymen who may want to visit or run businesses here.

The establishment of a Special Economic Zone for South Korean businesspeople would also be an excellent step, and demonstrate the Kingdom’s strong commitment to attracting Korean people.

South Korean citizens and diplomats should understand that Cambodia desires to have their nation as a good partner, and the two countries should hold more discussions and negotiations to further understand one another.

Recent reporting of possible terrorist attacks by North Korean intelligence operatives on South Korean diplomatic facilities in Cambodia, Vietnam and Laos, as well as some parts of China and Russia, are at the forefront of South Korean foreign policy, and the Cambodian government must prioritise the safety and security it provides to diplomatic staff and their families.

In terms of trade and business, the Cambodian government should study the lessons it can learn from Vietnam. Despite Vietnam being a socialist nation and South Korea a democratic one, the two countries are able to successfully invest in one another, so the Kingdom should take note of the details of their relationship.

Read full article at Khmer Times