Noticeable Reforms of Company Establishment in Cambodia
The urban development is quite positive this year making the city expansion possible at 23.5% of total population in 2018, according to Asia Development Bank. This year 2019, to be recorded again by end of year, with population grow over 16,249,798, Cambodia achieves 7% of GDP grow rate which still very positive for the whole economy.
Each year, there are several new businesses starts to register under the law of the kingdom. However, there are noticeable reforms of registration process in the last 5 years, from 2016 to 2020, which somehow results in positive and negative effects on new business establishment rate. Below are the changes has been made, following to World Bank Group’s record.
DB2020. Starting a Business: Cambodia made starting a business more expensive by increasing the costs associated with business registration at the Ministry of Labor and Vocational Training.
DB2019. Dealing with Construction Permits: Cambodia made dealing with construction permits less costly by reducing the fees of obtaining a building permit.
DB2017. Starting a Business: Cambodia made starting a business more difficult by increasing the time required to register and by requiring companies to submit evidence of capital deposit after registration.
Getting Credit: In Cambodia the credit bureau started to provide credit scores to banks and financial institutions, improving access to credit information.
DB2016. Starting a Business: Cambodia made starting a business easier by simplifying company name checks, streamlining tax registration and eliminating the requirement to publish information on the new company’s incorporation in the official gazette. Getting Electricity: Cambodia reduced the average frequency and duration of power outages experienced by a customer over the course of a year in Phnom Penh by increasing power generation capacity.
Of course, there are pros and cons of the reforms we should keep tracks and understand the direct results of the changes in order to sharing inputs to concerned organizations to in developing Cambodia business ecosystem.
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