People conduct business on the street in Phnom Penh. Many similar informal businesses remain unregistered. CNC
Last year saw more than 10,000 businesses registered through the government’s Single Portal system, bringing the total number to over 40,000 since the service was first rolled out in 2020.
The first phase of the Information Technology Business Registration System (Single Portal) was officially launched by the government in June 2020. It involved six state institutions: the Ministry of Interior, Ministry of Economy and Finance, Ministry of Commerce, Ministry of Labour and Vocational Training, the General Department of Taxation and the Council for the Development of Cambodia.
The second phase was launched in September 2021 and the third in June 2023, with additional institutions added at each stage.
According to a report from the system’s administrators, from June 15, 2020 (the start of operations) to December 31, 2024, the total number of companies/business enterprises registered through the Single Portal reached 42,325, with a total registered share capital of 64 trillion riel, or $15.6 billion. Among the companies, 37% are owned by women.
In 2024, 10,002 companies/business enterprises were registered, a decline of 14.05% compared to 2023. However, the total capital registered in 2024 was estimated to be around 6 billion dollars, an increase of 60% over 2023.
Key sectors include agriculture, steel manufacturing, hospitality services, energy and real estate, added the report.
Hong Vannak, an economist at the Royal Academy of Cambodia, told The Post on January 27 that before the implementation of the system, very few business owners in Cambodia officially registered their businesses.
However, legal enforcement by the authorities and business owners' growing awareness of their obligations has encouraged more entrepreneurs to register, ensuring their businesses are legally compliant. This registration will provide significant benefits for both the government and individual business owners, boosting confidence among the public and potential investors in Cambodia.
“Registration has many benefits for the government and the private sector. Most importantly, it gives customers confidence in the quality, price and professionalism of services. When there is clear data on the types and numbers of businesses, it helps the government plan strategies to support or encourage businesses in specific sectors facing difficulties. It also makes it easier for the government to set tax rates, among other things,” explained Vannak.
He added that the decline in the number of registered companies in 2024 is normal and has occurred in other countries as well, due to political instability and global economic slowdowns, causing some investors to hesitate in launching new businesses.
Chhin Ken, president of the Cambodia Digital Tech Association (CDTA), believed that a strengthened business legal system, simplified the registration process and business owners' increasing knowledge of information technology have encouraged more owners to register. When all businesses are officially recognised by the authorities, it will help make competition more transparent.
“When all businesses are registered, it will bring many benefits to both the government and the private sector. It will also help reduce the unfair practices of some unregistered business owners who operate without paying taxes,” he continued.
Prime Minister Hun Manet has previously highlighted the important role of entrepreneurs in the national economy and encouraged all business owners to register with the authorities. This will enable the government to have the necessary information and provide timely solutions when any issues arise.
He explained that the government’s policy is to encourage entrepreneurs (especially in the informal economy) to register voluntarily without any coercion.
“Why should businesses register? How much does it cost? Are there penalties? What are the obligations? What benefits will come from it? These are the questions that the policy team is paying the most attention to, with much discussion in inter-ministerial meetings,” he said.
“We want as many people as possible to participate in this phase, making it easier for the government to collect data, manage policies, and support you to meet your deadlines and objectives, especially during difficult times,” he continued.
