How to Set Up a Company in Cambodia and Invest in Real Estate – 2025 Guide

How to Set Up a Company in Cambodia

Cambodia has emerged as one of the most attractive investment destinations in Southeast Asia.
Thanks to its liberal economic policies, dollarized economy, and openness to foreign capital, European investors are increasingly establishing companies here to purchase property, engage in rental activities, and develop commercial projects.

In 2025, setting up a company in Cambodia is a straightforward and fast process – fully accessible to foreigners, provided you understand the local regulations.

Why Set Up a Company in Cambodia

• ✅ Full control over investments – ability to purchase land through a Cambodian company.
• ✅ No currency restrictions – all transactions in US dollars (USD).
• ✅ Low corporate tax – 20% for companies, with incentives for investment projects.
• ✅ Strategic location – between Thailand, Vietnam, and China.
• ✅ Simple tax system and investor-friendly corporate law.

According to the World Bank Doing Business Cambodia 2024 report, Cambodia ranks among the easiest countries in Asia for foreign entrepreneurs in the "Ease of Starting a Business" category.

Business Structures for Foreign Investors

1. Private Limited Company (Co., Ltd.)

The most commonly chosen structure by foreign investors.

Key Features:

• Minimum of 1 director and 2 shareholders,
• Minimum capital: USD 1,000–5,000,
• Foreigners can hold up to 49% of shares (in practice, often 100% for companies registered for real estate investments).

📄 Registration: General Department of Business Registration (GDB)

2. Foreign-Owned Company (FIE)

A wholly foreign-owned company – permitted for activities not subject to restrictions (e.g., offices, consulting, property rental).

Requirements:

• Registered office address in Cambodia,
• Resident director,
• Annual financial audit.

💡 Under this structure, foreigners cannot directly own land, but can manage properties or conduct leasing operations.

3. Cambodian Land-Holding Company (LHC)

This solution is designed for investors who want to own land indirectly.
The structure requires registering a company with 51% Cambodian citizen ownership (nominee shareholder).

Conditions:

• 51% local ownership,
• 49% foreign ownership,
• Special agreement protecting investor interests (Shareholder Agreement, Nominee Contract).

💡 With proper legal structuring (control agreement), investors maintain full control over the company despite holding a formal minority stake.

📄 Recommended law firms: Sciaroni & Associates, DFDL, Bun & Associates.

Steps to Establish a Company in Cambodia

1. Choose a company name and reserve it in the GDB system (3–5 days).
2. Prepare registration documents – articles of association, shareholder details, office address.
3. Open a corporate bank account (minimum USD 1,000 capital).
4. Register the company online through MOC Cambodia.
5. Obtain a Tax Identification Number (TIN) from the General Department of Taxation (GDT).
6. Register business activity with the local municipality office.
7. Register for VAT (if projected annual turnover exceeds USD 62,500).

💡 The entire process takes 7–14 business days, with costs not exceeding USD 1,000–1,500.

Investing in Real Estate Through a Company

Model	Land Ownership Possible	Investment Type	Benefits
100% Foreign-Owned Company	❌ No	Property management and rental	Low risk
Land-Holding Company (LHC)	✅ Yes (indirectly)	Land acquisition, project development	Full control
Joint Venture (JV)	✅ Yes	Joint investments with local developers	Knowledge transfer and profit sharing

💡 In practice, foreign investors most commonly use LHC structures or partnerships with local developers (JV).

Corporate Taxes in Cambodia (2025)

Tax Type	Rate	Notes
Corporate Income Tax (CIT)	20%	Standard rate
VAT	10%	For property and services
Rental Tax	10%	On gross rental income
Dividend Tax	14%	For foreign shareholders
Property Tax	0.1% annually	On values exceeding USD 25,000

📄 Source: Knight Frank Cambodia Tax Overview 2024

Costs of Purchasing Property Through a Company

Fee Type	Amount	Approximate USD Equivalent
Transfer Tax	4% of property value	USD 4,000 per USD 100,000
Property Registration	1–2%	USD 1,000–2,000
Legal Fees	USD 500–1,000	USD 500–1,000
Annual Audit & Accounting	USD 800–1,200	USD 800–1,200

Advantages of Owning an Investment Company

• ✅ Ability to undertake development projects (condos, villas, offices).
• ✅ Eligibility for long-term leasehold (up to 50 years).
• ✅ Easy transfer of company shares.
• ✅ Investor protection under local corporate law.
• ✅ Tax incentives for projects registered with the Cambodian Development Council (CDC).

📄 More information: Council for the Development of Cambodia – CDC Investment Guide

Common Investor Mistakes

• ❌ Registering a company without local legal counsel.
• ❌ Purchasing property without verifying title ownership (Hard Title).
• ❌ "Nominee" agreements without ministry registration.
• ❌ Failure to file annual tax returns – can result in fines up to USD 1,000.

💡 Working with an experienced agency and law firm helps avoid these pitfalls.

Summary

Establishing a company in Cambodia is the first step toward safe and legal real estate investment.
The legal system enables full control over investments while maintaining competitive taxes and straightforward procedures.

For international investors, it's an ideal way to diversify capital and enter the rapidly growing Southeast Asian market.

FAQ

Can foreigners set up a company in Cambodia?
Yes – the law allows foreigners to establish and operate companies in most sectors.

Can a company own property?
Yes – if it's a land-holding company with 51% local ownership.

Can you register a company remotely?
Yes – online registration through the MOC portal is available from any country.

Does Varsovia Estate assist with investment company registration?
Yes – we offer comprehensive investment services, including company registration, tax advisory, and property acquisition.

About Varsovia Estate

Varsovia Estate is an international real estate agency specializing in premium properties in Thailand and Cambodia. We assist investors in analyzing, purchasing, and managing properties throughout Southeast Asia. We combine European service standards with local expertise and experience. Our goal is to provide clients with maximum security and investment returns.