Investment Scheme in Cambodia

Investment Licence Scheme

* “Amended Law on Investment” of 2003 was made to adopt the automatic approval system of the investment projects, which must be completed within 31 working days after the receipt by the Council for the Development of Cambodia (CDC) or PMIS of the investment proposal, unless they are among the fields prohibited in the negative list or investment project related to the national interest/ environmental sensitivity.

* An investment approval will be issued not to an investor or investing enterprise but to a project. A project which receives the investment approval is called a Qualified Investment Project (or “QIP”).

* “Amended Law on Investment” governs all QIPs and defines the procedures by which any person establishes a QIP.

* The investment incentives are granted automatically to a QIP.

* The CDC is expected to act as One-Stop Shop and obtain all of necessary licenses required from relevant ministries entities listed in the Conditional Registration Certificate (CRC) for investment on behalf of the investment applicant.

* A QIP may be in the form of a joint venture. A joint venture may be formed between Cambodian entities, between Cambodian entities and foreign entities or between foreign entities. There is no limitation based on nationality or the share-holding proportion of each shareholder, except in the case a joint venture owns or intends to own land or an interest in land in Cambodia. In such a case, the maximum combined share-holding of all foreign parties must not exceed 49%.  

Investment Gurantee

The Law on Investment guarantees the investment as follows (Article 8 to Article 11 of “Amended Law on Investment”):

*  A foreign investor shall not be treated in any discriminatory way by reason only of the investor being a foreign investor, except in respect of ownership of land.

*  The Royal Government shall not undertake a nationalization policy that would adversely affect private properties of investors in Cambodia.

*  The Royal Government shall not fix the price or fee of the products or services of a QIP.

*  The Cambodian Government shall permit investors to purchase foreign currencies through the banking system and to remit abroad these currencies for the following purposes:

1-    Payment for imports and repayment of principle and interest on international loans

2-    Payment of royalties and management fees

3-    Remittance of profits

4-   Repatriation of invested capital