Doing business here is relatively easy.

As far as licensing goes, you just go to the Misisty of Commerce, tell them what you want to do, give them a couple of hundred dollars, and they give you all the paperwork you need.

I have nothing to do with manufacturing garments in Cambodia, but I'm told that productivity here is very low compared to Vietnam, and costs are getting to be about the same.

Export here is fine, as long as you're not in a hurry. MoC will clarify relevant tariffs when you go to register with them.

Good Luck!

Thanks Bubble T. Can you suggest a website where i can get in detail information regarding costs on businesses such as my example?

Cheers again.

As the garment industry seems to be all about squeezing the margins, I doubt you will find anyone with serious practical knowledge of the subject who's willing to share it for free on a public forum, but here's what I know:

Thai silk is better quality than Khmer silk, and fetches higher prices (don't know how relevant that is to your plans)

Vietnamese garment factories have considerably higher productivity rates, and have better shipping facilities

You will be going into a tight market with unscrupulous people. If you make a profit, they will give a bundle of cash to your Khmer staff in exchange for contact details of your customers, they will sell at a loss until you are out of business, they will pay the police to hassle you for paperwork. Infact, there is pretty much nothing that local tycoons wouldn't do to prevent you from taking any of their business. And if they Khmers don't get you, the Chinese and Koreans will.

As for paperwork - here's the deal in more detail:

You go into the Ministry of Commerce building on Norodom Blvd (near the Wat Phnom end, by all the bank HQ's). On your left as you enter, you will see a line of three or four oldish Khmer women - none of whom speak a word of English. You tell them you'd like to set up a business.

First they will ask you what name you'd like for your business, then they run off for a few minutes to check if it's available.

Next, they will show you a lost of standard business activities and will ask you to select which one's your new company intends to perform. You can chose as many different activities on the list as you like - naturally I chose all of them as you never know what pies you're going to dip your fingers into. The list reads as follows:

- Services for information technology (IT)
- Trading: Purchasing, selling, exchanging, exporting, and importing all kinds of goods, importing medicines and all kinds of medical equipment;
- Renting, warehousing all kinds of products and goods – Repairing all kinds of materials and goods.
- Currency exchange, productions, purchase and sales of jewelry.
- Hospital for consulting and treating the diseases.
- School establishing
- Services for commission – Commercial agency – Commercial representative
- Financial and Commercial consultation service.
- Local and overseas employment recruiting services.
- Advertising services
- Publishing
- Production of cinema and Video CD
- Transportation: by sea, by land and by air – Goods forwarding and distributing service.
- Services for commission on transportation
- Construction, repairing building and roads
- Tourism: Hotels, Restaurants, Entertainment Center
- Investment in the field of industry: Factory, Handicraft

They then give you a paper confirming that you've started the registration process - which you then take to the bank. Show them the paper, and they will let you set up a business account. Once you've done that, you take the details back to the MoC, where they use your new business account info to finish the registration process.

You then give them $300 in cash, collect your receipt, and get told to come back in a few days for your official business stamp. This is also the time and place to ask if you have any queries regarding special tariffs, licensing woes, etc.

Once you've done all that, you are a legal, legitimate business entity. The next step (assuming you want to do it all by the book) is the tax office. Unfortunately, my dealings with the Khmer Taxation Crew have been nowhere near as smooth as my dealings with the MoC. Infact, things with the tax boys are bad enough that it would be a bad idea for me to write about it. Needless to say, tax departments are a bitch in any country, and Cambodia is certainly no exception on that front.

For more info on doing business in Cambodia from the government's perspective, check out http://investincambodia.com/, or for more practical info, try searching through the archives on this site. You will notice tha ton the first page of the site I've jsut linked you to, they point out that unlike any of the neighboring countries, in Cambodia a 100% foreign owned business can do anything that a Khmer owned business can (except for buying land).

Thanks Bubble T, if it ever gets off the ground i'll buy you a beer or three and give you your own silk Jarmies!

Greatly appreciated.

No worries, here's another link to help you on your merry way...

http://www.gmac-cambodia.org/

And seeing as there are no copyright laws here. .....just rip all these off;

http://www.peteralexander.com.au/jj_default.htm

IT

YES THERE ARE - as of this year, they just aren't respected/acknowledged by anyone.

I believe a subtle change is all that is required...

Any other favourites IT?

if you ever get to the stage o looking for experienced staff, you should be able to lure them away from all the chinese-owned textile companies (read: sweatshops) in the canadia industrial park area, and out near the airport ... :twisted:

here is a page with the business associations in Cambodia

http://www.expat-advisory.com/cambodia/phnom-penh/business-associations.php
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here is another good link

http://www.expat-advisory.com/forums/handbook-on-commercial-registration...

I have a few copies of these books left if needed