How to Register a Sole Proprietorship (សហគ្រាសបុគ្គល / Sahakreas Bokkol) in Cambodia

Cambodia has quickly become an attractive place for independent work. As the economy grows and digital infrastructure improves, more professionals are choosing to work as freelancers and small business owners. Registering as a sole proprietorship (សហគ្រាសបុគ្គល / Sahakreas Bokkol) gives you the freedom to work for yourself, set your own rates, and take on clients both locally and internationally.

The process is straightforward thanks to Cambodia’s online registration system, which means you can set up a business in just a few steps without heavy bureaucracy. Costs are relatively low compared to other countries in the region, and the flexibility of the sole proprietorship model makes it ideal for consultants, creatives, and service providers who want independence.

Of course, there are trade-offs: you assume full responsibility for the business and must stay on top of tax obligations. But for many, the benefits—flexibility, independence, and access to a growing pool of global opportunities—make freelancing in Cambodia a smart move.

Disclaimer: This article is for informational purposes only and is not a substitute for professional legal or tax advice. Always consult official government sources or licensed advisors before taking action.

What is a sole proprietorship (សហគ្រាសបុគ្គល) in Cambodia?

In Cambodia, a sole proprietorship (សហគ្រាសបុគ្គល / Sahakreas Bokkol) refers to a business owned and operated by one individual. It does not create a separate legal entity, so all business debts and obligations fall directly on the owner. This structure is one of several business types recognized under Cambodia’s business registry, managed by the Ministry of Commerce (MoC) through its online Business Registration portal.

How does a sole proprietorship work in Cambodia?

Sole proprietorship vs Private Limited Company (PLC) in Cambodia

A Private Limited Company (PLC) is a common alternative offering liability protection. Here’s how they compare:

Step-by-step guide: how to register a sole proprietorship in Cambodia

Step 1: Check eligibility and create your government login

Anyone aged 18+ (Cambodian or foreign national with valid ID/passport) can register a business online. Start at the Royal Government’s Online Business Registration portal and create or sign in with CamDigiKey, the state single sign-on used for all steps. The portal summarizes the end-to-end flow and confirms that approvals can be issued within days once your file is complete.

Step 2: Choose and reserve your business name

Use the Ministry of Commerce’s Business Registration site to reserve a sole-proprietorship name before you file—or reserve it as part of your registration. The official MoC page has a dedicated flow for sole proprietorship name reservation and was updated in August 2025, so the guidance is current. If the name is available, proceed directly to registration so the reservation doesn’t lapse while you gather documents. businessregistration.moc.gov.kh

Step 3: Complete the Ministry of Commerce registration online

File the application on MoC’s online registry: enter owner details, activity, address, and upload your ID. You’ll pay the government fee online and track the file in your account; MoC notes the process is designed to be “very easy” once you have the required information ready. After approval, you can download your digital registration/certificate from the portal.

Step 4: Register for taxes (Taxpayer ID, VAT if applicable)

Next, register with the General Department of Taxation (GDT) to obtain your taxpayer account via the e-Tax Services portal (e-registration/e-filing). This is where you handle monthly/annual declarations and, if required, VAT—all managed online after you’re set up. If you need application templates or administrative forms, use GDT’s Download Documents/Forms page and select the relevant tax-registration materials.

Step 5: Check for any additional (specialized) licenses and municipal steps

Some activities (for example, regulated services or premises-based businesses) require sector-specific licenses; the government’s Single Portal flags these and lets you download/receive digital permits once approved. The portal is designed so you can register, pay, and obtain decisions in the same workflow, with status tracking and digital outputs. If you hire staff later, the Single Portal also supports the business operation announcement to the Ministry of Labour as part of the integrated flow.

Step 6: Meet post-registration obligations (invoicing, filings, updates)

Keep organized records and file returns according to the GDT deadlines (monthly/annual schedules are posted on the GDT site). Use the e-services to submit and pay online; the GDT continues to enhance digital services so most compliance is handled electronically. If your business details change (name, address, activity), update them in the MoC registry and, where relevant, in the Single Portal so your digital certificates remain current.

Financial and tax obligations for sole proprietors in Cambodia

Sole proprietors are subject to several key obligations:

• Personal income tax: Progressive tax rates up to 20%, depending on income level.

• VAT (10%): Standard VAT applies to sales and services; it's collected and remitted under a self-declaration system.

• Withholding tax: Payments for services to residents are withheld at ~15%, to non-residents at ~14%.

• Record-keeping: Maintain all invoices, receipts, and financial documents for audits and tax filing.

• Penalties: Late filings or inaccurate records may result in fines from the GDT.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required?
There is no minimum capital requirement—just pay the standard registration fee (around USD 100).

Do sole proprietors need to register for VAT?
Yes. Most businesses must register for and collect 10% VAT under Cambodia’s self-declaration regime.

How much are the standard contributions?
You’ll pay the USD 100 initial business registration fee, plus VAT and income tax based on earnings. Withholding tax may apply to payments.

Can a sole proprietor hire employees?
Yes—but you must register as an employer and manage payroll withholding and social contributions separately.

How long does registration take?
The process typically takes 7–10 working days if all documents are in order.

Can foreign nationals register as sole proprietors?
Yes—foreigners with valid ID or passport can register using the standard procedure.

Do I need a separate business bank account?
Not legally required, but highly recommended for account clarity and simplified tax filings.

What happens if I stop operating?
You should deregister online via the MoC portal and notify the GDT to close your tax file.

Are there government incentives for new sole proprietors?
While no general incentives exist, certain SME and investment sectors may qualify for tax holidays or support.

Can I use Deel as a sole proprietor to get paid by international clients?
Yes. Deel enables global invoicing and payments with low fees and transparent currency exchange.

Does Deel generate compliant invoices?
Absolutely—Deel automatically formats invoices to meet Cambodian VAT and business standards.

Can Deel help me with taxes as a sole proprietor?
Yes. Deel provides downloadable payment summaries and tax-friendly reports, making GDT filings easier—though it does not replace an accountant.

Does Deel offer contracts?
Yes. Deel includes contracts compliant with Cambodian law, tailored for independent contractors.

Can I access benefits through Deel as a sole proprietor?
Yes. Deel offers optional perks such as health coverage and retirement savings, bringing employee-style benefits to freelancers.