Nearly 35,000 companies have successfully registered their businesses through the Online Business Registration System (OBRS) via IT Platform phase 1 – commonly known as Single Portal – with a total registered capital exceeding $10.4 billion, as reported by the OBRS.
The integrated platform was launched by the government on June 15, 2020, incorporating four ministries – Economy and Finance; Interior; Commerce; and Labour and Vocational Training – along with the General Department of Taxation (GDT) and the Council for the Development of Cambodia (CDC).
Subsequently, the government announced the initiation of the second and third phases of the project on September 15, 2021, and June 22, 2023, respectively.
According to OBRS, 34,759 firms had been successfully listed through the system as of March 25, with a total registered share capital of $10.41 billion. Of these, women-owned enterprise accounted for 38%.
At the beginning of 2024, there were 32,323 companies registered, with a total capital of $9.6 billion.
Broken down by industry: the construction sector accounted for approximately $1.16 billion of the registered capital, or 11.4%; real estate ($1.06 billion, or 10.18%); accommodation services ($1.02 billion, or 9.78%); management consulting ($608 million, or 5.84%); garment manufacturing, excluding fur ($564 million, or 5.42%); and other sectors ($6 billion, or 57.63%).
OBRS noted that an additional 18,703 other ventures have applied for licensing, along with three applications that were rejected.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post that legal reforms, streamlined procedures allowing remote business registration and increased technology awareness have contributed to the rise in registered businesses.
He expects this number to grow further, noting that many businesses are yet to be officially registered.
Heng emphasised that registering with the authorities benefits both the government and business owners. He said it aids in ensuring transparency in the buying and selling of goods, as it requires businesses of the same nature to adhere to the same laws, pay equivalent taxes and become eligible for governmental support in case of unforeseen issues.
“We really want to see every business come under the law. Besides the aforementioned benefits, commencing a business within the proper legal framework can also be a significant factor in attracting more foreign investors to Cambodia,” he stated.
Prime Minister Hun Manet, during the launch of the National Strategy on Informal Economic Development 2023-28 in October 2023, acknowledged the crucial role of business owners in the national economy.
He encouraged all owners to register with the authorities, enabling the government to obtain necessary information and address issues promptly as they arise.
He added that the government’s approach is to motivate, rather than coerce, businesspeople, particularly those in the informal economy, to register.
Manet said the key considerations for policy groups, discussed extensively at inter-ministerial meetings, include reasons for registration, associated costs, potential penalties, obligations and benefits.
“We aim for broader participation in this transition to allow the government to acquire data that will facilitate timely and accurate policy management, especially during challenging times,” he stated.
According to the prime minister, benefits of voluntary registration during this transition period include exemptions from penalties and tax liabilities for small and medium-sized enterprises (SMEs), various tax incentive and access to financial support and enterprise management training.