Business Licences and Annual Compliance in Cambodia

The licence is separate from the registration

A company registration certificate proves the company exists. It does not authorise every activity. Regulated sectors need an operating licence on top of the registration, and some need approvals from more than one ministry.

Knowing which ones apply to you is the first compliance question, and it is worth answering before you sign a lease or hire staff.

Know your tax regime

The regime assigned at registration determines how often you file and what records you keep. Smaller businesses may fall under a simplified regime; larger ones file monthly and need properly organised accounting from day one.

If your revenue approaches a threshold that changes your regime, plan for it. Switching regime mid-year is disruptive and usually costs more than preparing for it.

Monthly filings

Companies under the full regime typically file monthly returns for value added tax, withholding tax on salaries and payments to resident and non-resident providers, and prepayments of profit tax. Each has a deadline, and each carries penalties for late filing even when the amount due is zero.

A zero return is still a return. This is the single most common and most avoidable compliance failure for new companies.

Patent tax

The patent tax is an annual obligation tied to the business, normally settled early in the year. Missing it creates a problem that reappears every time you need a tax certificate or a document for a bank.

Annual declaration of commercial enterprise

Companies are expected to file an annual commercial declaration with the Ministry of Commerce alongside their tax filings. The two obligations are separate: completing one does not satisfy the other.

Record keeping that survives an audit

Keep invoices, customs declarations, contracts, payroll records and bank statements in an organised file for each year. Where the business imports, keep the customs documents attached to the related purchase invoice — that is where recoverable VAT is usually challenged.

A workable annual calendar

1. January — close the previous year's books, prepare financial statements.
2. Early in the year — settle the patent tax obligation.
3. March — file the annual tax return and the annual commercial declaration.
4. Every month — file all returns, including zero returns, and pay withholding tax.
5. Ongoing — keep the document file current.

If accounting is not your strength, hire a firm that files monthly rather than one that appears once a year. Compliance failures here are rarely about the size of the tax; they are about the paperwork nobody sent.