Real estate agency

How to create a real estate agency in Cambodia

Many foreign companies are interested in the Kingdom of Cambodia because of its attractive investment environment. As such, local entrepreneurs have embarked on the creation of real estate companies to meet the demands of Cambodian and foreign compatriots. But starting a real estate company is easier said than done.

In this Immobilier.com.kh guide, we will give you the guidelines to start a real estate company with the necessary documents and licenses relevant to Cambodian laws and regulations.

DISCLAIMER: Immobilier.com.kh strongly recommend consulting a lawyer for professional advice. This guide is only intended to give prospective business owners an overview of setting up a real estate company in the Kingdom.

Key considerations for starting a real estate agency

Investors who want to set up a real estate agency in Cambodia will need to consider things like company registration, tax obligations, real estate licenses, office setup, recruitment, and business plans.

If you want to start a different type of business, you can check the general guide of Realestate.com.kh to start a business in Cambodia.

For the purposes of this guide, we’ll talk specifically about how to start a real estate agency in Cambodia.

Registration with the Department of Commerce

Business registration is required with the Ministry of Commerce of the Kingdom of Cambodia. Companies registered in the Kingdom receive a certificate of registration.

The company must meet the following requirements of the Ministry of Commerce:

Must define a company name to be approved by the Ministry of Commerce

Must provide the terms and conditions of the business, documents proving the location of the business, the identity card of the business owner, the bank certificate of deposit (at least $ 1,000), the stamp of the company, the letter of appointment and the application for registration of the company.

The registration period with the Department of Commerce takes about two weeks and costs about $ 370. There are services rendered free of charge.

Payment of taxes to the Directorate General of Taxes

After registering with the Ministry of Commerce, the applicant must submit the registration certificate, along with other relevant documents, to the General Tax Department to pay its registration fee and the annual patent tax for the initial registration.

Patent tax is derived from the tax classification of the business owner under the self-assessment tax regime and is payable between January 1 and March 31 of each year. We recommend that you consult a lawyer on how to properly assess your tax regime for setting up a business in Cambodia.

New taxpayers, whose activity started in the first six months of the year, will pay their annual tax in full. Those who start their business in the last six months of the year will only have to pay half of their annual tax.

Business owners who own multiple assets (such as warehouses, offices, etc.) under a single business in the same province only have to pay their patent tax in that province. However, companies with assets in more than one province will have to meet their patent tax obligations in each province.

Business owners are required to display the patent at their place of business. These patents take about 1 to 2 weeks to obtain and will cost 1,200,000 riel (US $ 290).

Obtaining a license from the Ministry of Economy and Finance.

The last general step is to obtain a license from the Ministry of Economy and Finance. To apply for a license, the applicant must prepare the following documents:

Completed license application form

Photo of the license holder and professional real estate service certificate

History of the shareholder or business owner

Letter from the Ministry of Justice of Cambodia

Photocopy of a national identity card and a residence booklet

Documents issued by the Ministry of Commerce and Taxation, the certificate of company registration and a copy of a letter of company registration and patent.

Letter of establishment of the company issued by the local authority, accompanied by photos of the establishment of the company.

A 3-year business plan.

The application for approval to the Ministry of the Economy and Finance takes approximately one month from the date of submission of sufficient documents without error.

The fees required for a real estate agent’s license are as follows:

The real estate agent’s license is 500,000 riel (US $ 120) plus an administration fee of 100,000 riel (US $ 25)

The Professional Real Estate Service Certificate is 200,000 riel ($ 50) plus an administration fee of 40,000 riel ($ 10), for a total of 840,000 riel ($ 210).

Once you have obtained a license and professional certificate from the Ministry of Economy and Finance, you can legally operate your business in Cambodia.

You can register to become a member of the Association of Cambodian Appraisers and Real Estate Agents. Currently, CVEA has over 100 member companies, working as a network to promote real estate in Cambodia.

Link to the original story:

https://www.realestate.com.kh/guides/how-to-start-your-own-real-estate-in-cambodia/

  • Key words: real estate, taxation


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