Cambodia Investment FAQ: Everything First-Time Investors Ask (2025 Edition)
A practical, evergreen reference for new foreign investors entering the Cambodian market
Thinking about investing in Cambodia but unsure where to start? You’re not alone. With one of the fastest-growing economies in Southeast Asia, Cambodia is attracting foreign capital at record levels—but for first-time investors, navigating unfamiliar rules, structures, and incentives can be overwhelming.
This Cambodia Investment FAQ is your one-stop reference guide covering the most common questions we receive at Adaeng Development. Whether you’re a solo entrepreneur or a global firm entering a new market, consider this your entry point to confident investing.
🧭 1. Can foreigners own 100% of a business in Cambodia?
Yes. Foreign investors can own 100% of a company in nearly all business sectors, including real estate development, agriculture, services, and manufacturing.
However, some sensitive sectors (like land ownership or broadcast media) require either Cambodian majority control or partnership structures such as joint ventures.
📌 Learn more: How to Legally Structure a Foreign-Owned Business in Cambodia (2025 Guide)
📝 2. What are the steps to register a business in Cambodia?
Here’s a simplified overview:
- Choose legal structure (Co., Ltd. is most common)
- Reserve company name via Ministry of Commerce (MoC)
- Draft Articles of Incorporation
- Register online via MoC Business Portal
- Apply for Tax Identification Number (TIN) at GDT
- Register for VAT and obtain patents
- Open business bank account
📌 Registering a Foreign Business in Cambodia (Step-by-Step)
🗺️ 3. What sectors offer the best investment opportunities?
Cambodia’s priority investment sectors in 2025 include:
- Agri-business & food processing
- Renewable energy (solar, biomass, off-grid)
- Tourism & eco-hospitality
- Logistics and supply chain infrastructure
- Smart city development & IT services
📌 See our full sector analysis: Investment Incentives by Sector (2025 Matrix)
📊 4. Are there tax incentives for foreign investors?
Yes. Cambodia’s QIP (Qualified Investment Project) designation offers:
- 3–9 years of profit tax holiday
- Minimum tax exemption
- Duty-free import of materials and equipment
- Simplified customs & licensing
📌 Cambodia Investment Law Explained (2025 Edition)
💵 5. What taxes do businesses in Cambodia pay?
- Corporate Tax (Profit Tax): 20%
- Minimum Tax: 1% of turnover (waived for QIP)
- Value Added Tax (VAT): 10%
- Withholding Tax: 10%–15% depending on service and residency
- Salary Tax: Progressive rates up to 20%
📌 See our full guide: Cambodia’s Tax System for Foreign Investors
🧾 6. Do I need to file monthly or annual tax returns?
Both. Companies must submit:
- Monthly returns (VAT, WHT, salary tax) by the 20th of each month
- Annual Profit Tax Return by March 31
- Annual Declaration at the Ministry of Commerce
📌 Annual Filing & Reporting Obligations for Businesses
🏠 7. Can foreigners buy land in Cambodia?
Foreigners cannot directly own land. Legal workarounds include:
- Long-term land leases (up to 50 years, renewable)
- Joint ventures with Cambodian partners
- Purchasing through strata title (condominiums only)
📌 Step-by-Step Guide to Acquiring Land in Cambodia (2025)
🏗️ 8. What permits are required for construction or renovation?
To legally build, renovate, or convert land use, you’ll need:
- Land title verification
- Zoning compliance check
- Environmental Impact Assessment (if applicable)
- Construction permit from Ministry of Land Management
📌 Construction Permits in Cambodia: Step-by-Step Guide
👷 9. How do I hire employees in Cambodia?
You must:
- Draft bilingual employment contracts
- Register employees with NSSF (social security)
- File monthly tax and health contributions
- For foreign staff: apply for work permits and labor quota exemptions
📌 How to Hire and Build a Local Team in Cambodia
💡 10. Can I bring my own team from abroad?
Yes, but only within limits. Cambodian law restricts foreigners to 10% of the total workforce per company, unless exemptions are granted. Roles must be skilled, managerial, or highly specialized.
📌 Apply via FWCMS Work Permit Portal
🧩 11. What is the minimum investment amount?
There is no universal minimum capital, but for QIP and special licenses, minimum thresholds may apply:
- Agri-business & manufacturing: $250,000+
- Hospitality and tourism: $100,000+
- Technology/startups: $50,000+ (some flexibility)
📌 Curious if your business qualifies? Book a free consultation
📦 12. Can I export products from Cambodia tax-free?
Yes—Cambodia enjoys:
- ASEAN duty-free exports under AFTA
- RCEP membership (covers China, Japan, Korea, etc.)
- Partial access to the EU via EBA preferences
- GSP status with select countries
Products manufactured in QIP zones often enjoy zero-rated VAT on export.
📌 Learn more about Logistics & SEZ Investment
🔒 13. Is it safe to invest in Cambodia?
Yes, provided you do due diligence. Risks exist in land ownership disputes, informal partnerships, and unregistered business dealings.
✅ Avoid risk by:
- Verifying land titles
- Structuring businesses with legal clarity
- Ensuring compliance with tax and labor rules
📌 How to Conduct Due Diligence Before Investing
🌟 Final Thoughts: Cambodia Is Open for Investment—Are You Ready?
Whether you’re looking to open a factory, launch a brand, or buy development land, Cambodia offers a fast-track into one of Southeast Asia’s most dynamic markets. But success comes from knowing the rules, planning your structure, and investing strategically.
At Adaeng Development, we simplify the journey for first-time investors—handling legal structuring, tax registration, permits, QIP applications, and workforce setup all under one roof.
📞 Take your first step today → www.adaeng.co/contact
📥 Bonus Tool: Free Cambodia Investment Checklist
✅ Download the Ultimate Investor Checklist PDF
🔗 Internal Links
- Land Ownership Types Explained: Hard, Soft, and LMAP Titles
- Zoning Laws & Development Restrictions Guide
- Tourism Investment Beyond Angkor Wat
