The Ultimate Investment Checklist for Cambodia: 14 Questions Every Foreign Investor Must Answer

Cambodia has emerged as one of Southeast Asia’s most dynamic and investor-friendly destinations. With its open-door policy toward foreign direct investment (FDI), competitive labor costs, and strategic location within ASEAN, the Kingdom offers a wealth of opportunities across sectors—from infrastructure and energy to agriculture and real estate.

However, investing in Cambodia isn’t just about spotting an opportunity—it’s about being prepared. Whether you’re a multinational corporation or a first-time investor, this comprehensive checklist will help you assess your readiness and navigate the Cambodian investment landscape with confidence.

1. Do You Have an Existing Company Registered in Cambodia?

Before you can legally operate or invest in Cambodia, you must establish a legal entity. This typically involves registering with the Ministry of Commerce (MoC) and obtaining a Certificate of Incorporation, tax registration, and other relevant licenses.

If you don’t yet have a company in Cambodia, consider partnering with a local firm or appointing a representative to begin the groundwork while your registration is in process.

2. Does Your Company Have Relevant Experience or a Qualified EPC Partner?

The Cambodian government places a high value on technical expertise and proven track records. If your company lacks direct experience in the sector you’re targeting, it’s advisable to engage a qualified Engineering, Procurement, and Construction (EPC) contractor with local or regional experience.

This not only strengthens your proposal but also builds trust with regulatory authorities.

3. Can You Provide a Letter of Interest (LOI) or Letter of Intent?

A Letter of Interest (LOI) or Letter of Intent is often the first formal step in expressing your commitment to invest. It outlines your project scope, estimated capital, and timeline, and is typically addressed to the Council for the Development of Cambodia (CDC) or relevant ministries.

This document signals seriousness and helps initiate discussions with government stakeholders.

4. Do You Have Proof of Funds (POF) or a Bank Confirmation Letter (BCL)?

Cambodian authorities may request a Proof of Funds (POF) or Bank Confirmation Letter (BCL) to verify your financial capacity. This is especially important for large-scale infrastructure, energy, or real estate projects.

Having these documents ready demonstrates transparency and financial credibility.

5. Can You Appoint a Local Representative or Mandate?

If your company is not yet physically present in Cambodia, appointing a local representative or mandate is essential. This person or entity will act on your behalf in discussions with local authorities, ministries, and stakeholders.

Choose someone with strong local knowledge, language skills, and government connections to ensure smooth communication and negotiation.

6. Do You Have Land Secured for Development?

Land acquisition is a critical component of most investment projects. While foreigners cannot own land outright, they can:

• Lease land for up to 50 years (renewable)

• Form joint ventures with Cambodian nationals

• Use nominee structures (with caution and legal advice)

Ensure that the land is zoned appropriately and free of disputes before proceeding.

7. Are You Aware of Restricted Sectors for Foreign Investors?

Cambodia is generally open to FDI, but certain sectors are restricted or prohibited. These include:

• Production of narcotics or hazardous chemicals

• Logging and forestry exploitation

• Importing waste for energy production

Always consult the Negative List issued by the CDC or Sub-Decree 139 to ensure your project is eligible for incentives and approval.

8. Do You Have an Updated Company Profile or CIS?

An up-to-date Company Information Sheet (CIS) or corporate profile is often required during the application process. This should include:

• Company background and ownership structure

• Financial statements

• Past project experience

• Organizational chart

This document helps Cambodian authorities evaluate your credibility and capacity.

9. Are You Familiar with the Piped Water Supply Licensing Process?

If you’re investing in piped water supply, you must follow procedures set by the Ministry of Industry, Science, Technology and Innovation (MISTI). This includes:

• Applying for a license as an Independent Water Operator

• Submitting technical and financial feasibility studies

• Committing to service coverage and quality standards

Licensing can take several years, so early preparation is key.

10. Are You Aware of Solar and Waste-to-Energy Investment Requirements?

Cambodia is actively promoting renewable energy, but projects must comply with regulations from MISTI, EDC (Electricité du Cambodge), and other authorities.

Key considerations include:

• Tariff caps (e.g., ≤ $0.076/kWh for EDC sales)

• Proximity to substations (ideally within 10 km)

• Willingness to invest in substation infrastructure if needed

• Licensing timelines and environmental impact assessments

Projects can operate under Build-Own-Operate (BOO) models, but must be backed by strong technical and financial plans.

11. Are You Prepared for Licensing and Land Costs?

The Cambodian government does not typically offer concession land for private investment. Investors must:

• Purchase or lease land at market rates

• Pay licensing and registration fees

• Cover costs for permits, environmental assessments, and approvals

In some cases, “unofficial” facilitation fees may be requested to expedite processes. While not legally endorsed, this is a reality in some sectors. Transparency and legal compliance are strongly advised.

12. Do You Have a Local Bank Account?

Once your company is registered, you must open a corporate bank account with a licensed commercial bank in Cambodia. This is required for:

• Capital remittance

• Tax payments

• Payroll and vendor transactions

Choose a bank with strong digital services and experience handling foreign clients.

13. Are You Aware of Capital Remittance Requirements?

According to Cambodian investment law, at least 25% of your registered capital must be remitted into your local bank account within 90 days of receiving investment approval.

Failure to comply may result in penalties or revocation of your investment certificate.

14. Do You Understand Cambodia’s FDI Policy and QIP Incentives?

Cambodia’s Law on Investment (2021) offers generous incentives for Qualified Investment Projects (QIPs), including:

• Income tax exemptions (3–9 years)

• Customs duty exemptions

• Special depreciation and expense deductions

• Legal protections (non-discrimination, repatriation of profits, etc.)

To qualify, you must register with the CDC or Provincial Investment Sub-Committee (PMIS) and comply with sector-specific requirements.

Final Thoughts: Be Prepared, Be Strategic

Investing in Cambodia offers immense potential—but success depends on preparation, compliance, and local insight. By answering these 14 questions honestly and thoroughly, you’ll be better equipped to navigate the regulatory landscape and build lasting partnerships.

If you’re ready to take the next step, consider working with a trusted local advisor who understands the nuances of Cambodian law, culture, and business practices.