12-Step Guide to Starting a Business

There are no limits on who can become a great entrepreneur. You don’t necessarily need a college degree, a bunch of money in the bank or even business experience to start something that could become the next major success. However, what you do need is a strong plan and the drive to see it through.

If you’re on Entrepreneur, odds are you already have the drive, but, you might not know how to start building your empire.

That why we are here.

Check out this step-by-step guide to help turn your big idea into a successful business.

1. Evaluate yourself.

Why do you want to start a business? Use this question to guide what kind of business you want to start. If you want extra money, maybe you should start a side hustle. If you want more freedom, maybe it’s time to leave your 9-to-5 job and start something new.

Once you have the reason, start asking yourself even more questions to help you figure out the type of business you should start, and if you have what it takes.

  • What skills do you have?
  • Where does your passion lie?
  • Where is your area of expertise?
  • How much can you afford to spend, knowing that most businesses fail?
  • How much capital do you need?
  • What sort of lifestyle do you want to live?
  • Are you even ready to be an entrepreneur?

Be brutally honest with your answers.

2. Think of a business idea.

Do you already have a killer business idea? If so, congratulations, you can proceed to the next section. If not, there are a ton of ways to start brainstorming for a good idea. An article on Entrepreneur, “8 Ways to Come Up With a Business Idea,” helps people break down potential business ideas. Here are a few pointers from the article:

  • Ask yourself what’s next. What technology or advancement is coming soon, and how will that change the business landscape as we know it? Can you get ahead of the curve?
  • Fix something that bugs you. People would rather have less of a bad thing than more of a good thing. If your business can fix a problem for your customers, they’ll thank you for it.
  • Apply your skills to an entirely new field. Many businesses and industries do things one way because that’s the way they’ve always been done. In those cases, a fresh set of eyes from a new perspective can make all the difference.
  • Use the better, cheaper, faster approach. Do you have a business idea that isn’t completely new? If so, think about the current offerings and focus on how you can create something better, cheaper or faster.

Also, go out and meet people and ask them questions, seek advice from other entrepreneurs, research ideas online or use whatever method makes the most sense to you.

And, if you’ve exhausted all your options and you’re still stuck, here are 55 great business options you can start.

3. Do market research.

Is anyone else already doing what you want to start doing? If not, is there a good reason why?

Start researching your potential rivals or partners within the market by using this guide. It breaks down the objectives you need to complete with your research and the methods you can use to do just that. For example, you can conduct interviews by telephone or face to face. You can also offer surveys or questionnaires that ask questions like “What factors do you consider when purchasing this product or service?” and “What areas would you suggest for improvement?”

Just as importantly, it explains three of the most common mistakes people make when starting their market research, which are:

  1. Using only secondary research.
  2. Using only online resources.
  3. Surveying only the people you know.

4. Get feedback.

Let people interact with your product or service and see what their take is on it. A fresh set of eyes can help point out a problem you might have missed. Plus, these people will become your first brand advocates, especially if you listen to their input and they like the product.

One of the easiest ways to utilize feedback is to focus on “The Lean Startup” approach, but it involves three basic pillars: prototyping, experimenting and pivoting. By pushing out a product, getting feedback and then adapting before you push out the next product, you can constantly improve and make sure you stay relevant.

Just realize that some of that advice, solicited or not, will be good. Some of it won’t be. That’s why you should have a plan on how to receive feedback.

Here are six steps for handling feedback:

  1. Stop! Your brain will probably be in an excited state when receiving feedback, and it might start racing to bad conclusions. Slow down and take the time to consider carefully what you’ve just heard.
  2. Start by saying ‘thank you.’ People who give you negative feedback won’t expect you to thank them for it, but doing so will probably make them respect you and encourage them to continue be honest in the future.
  3. Look for the grain of truth. If someone doesn’t like one idea, it doesn’t mean they hate everything you’ve just said. Remember that these people are trying to help, and they might just be pointing out a smaller problem or solution that you should look into further.
  4. Seek out the patterns. If you keep hearing the same comments, then it’s time to start sitting up and taking notice.
  5. Listen with curiosity. Be willing to enter a conversation where the customer is in control.
  6. Ask questions. Figure out why someone liked or didn’t like something. How could you make it better? What would be a better solution?

Also, one way to help you get through negative feedback is to create a “wall of love,”where you can post all of the positive messages you’ve received.Not only will this wall of love inspire you, but you can use these messages later when you begin selling your product or service. Positive reviews online and word-of-mouth testimonials can help make a big difference.

 

5. Make it official.

Get all of the legal aspects out of the way early. That way, you don’t have to worry about someone taking your big idea, screwing you over in a partnership or suing you for something you never saw coming. A quick checklist of things to shore up might include:

  1. Business structure (LLC, corporation or a partnership, to name a few.)
  2. Business name
  3. Register your business
  4. Federal tax ID
  5. State tax ID
  6. Permits (more on permits here)
  7. License
  8. Necessary bank account
  9. Trademarks, copyrights or patents

While some things you can do on your own, it’s best to consult with a lawyer when starting out, so you can make sure you’ve covered everything that you need.

6. Write your business plan.

A business plan is a written description of how your business will evolve from when it starts to the finish product.

As angel investor and tech-company founder Tim Berry wrote on Entrepreneur, “You can probably cover everything you need to convey in 20 to 30 pages of text plus another 10 pages of appendices for monthly projections, management resumes and other details. If you’ve got a plan that’s more than 40 pages long, you’re probably not summarizing very well.”

Here’s what we suggest should be in your business plan:

  1. Title page. Start with name the name of your business, which is harder than it sounds. This article can help you avoid common mistakes when picking.
  2. Executive summary. This is a high-level summary of what the plan includes, often touching on the company description, the problem the business is solving, the solution and why now. (Here’s what you should include in the summary and how you can make it appeal to investors.)
  3. Business description. What kind of business do you want to start? What does your industry look like? What will it look like in the future?
  4. Market strategies. What is your target market, and how can you best sell to that market?
  5. Competitive analysis. What are the strengths and weakness of your competitors? How will you beat them?
  6. Design and development plan. What is your product or service and how will it develop? Then, create a budget for that product or service.
  7. Operations and management plan. How does the business function on a daily basis?
  8. Finance factors. Where is the money coming from? When? How? What sort of projections should you create and what should you take into consideration?

For each question, you can spend between one to three pages. Keep in mind, the business plan is a living, breathing document and as time goes on and your business matures, you will be updating it.

7. Finance your business.

There are a ton of different ways to get the resources you need to start your business.Angel investor Martin Zwilling, whose business Startup Professionals provides services and products for startups and small businesses, recommends 10 of the most reliable ways to fund your business. Take a look and consider your own resources, circumstances and life state to figure out which one works best for you.

  1. Fund your startup yourself. Bootstrapping your business might take longer, but the good part is that you control your own destiny (and equity).
  2. Pitch your needs to friends and family. It can be hard to separate business from personal relationships, but if you’re considering asking for a loan, here’s a resource you can use to make it as straightforward as possible.
  3. Request a small-business grant. Start by checking out our guide to small-business grants. Then, head over to Grants.gov, which is a searchable, online directory of more than 1,000 federal grant programs. It might be a long process, but it doesn’t cost you any equity.
  4. Start a crowdfunding campaign online. Sometimes power is in numbers, and a bunch of small investments can add up to something major. If you think your business might be a fit for something like Kickstarter or Indiegogo, you should read up on 10 of the best-crowdfunded businesses ever or check out the most popular crowdfunding websites.
  5. Apply to local angel investor groups. Online platforms such as Gust and AngelList and local networking can help you find potential investors who relate to your industry and passion.
  6. Solicit venture capital investors. VCs typically look for big opportunities from proven teams that need a million dollars or more, so you should have some traction before approaching them.
  7. Join a startup incubator or accelerator. These companies are designed to help new or startup businesses get to the next level. Most provide free resources, including office facilities and consulting, along with networking opportunities and pitch events. Some, also provide seed funding as well.
  8. Negotiate an advance from a strategic partner or customer. If someone wants your product or service bad enough to pay for it, there’s a chance they’ll want it bad enough to fund it, too. Variations on this theme include early licensing or white-labeling agreements.
  9. Trade equity or services for startup help. For example, you could support a computer system for office tenants in exchange for free office space. You might not get paid for this, but you won’t have to pay for an office, either, and a penny saved is a penny earned.
  10. Seek a bank loan or line of credit. Here are 10 questions you should ask before applying for a bank loan, including whether you will qualify. If you do meet the requirements, a good place to start for loan opportunities is the Small Business Administration.

8. Develop your product or service.

After all the work you’ve put into starting your business, it’s going to feel awesome to actually see your idea come to life. But keep in mind, it takes a village to create a product. If you want to make an app and you’re not an engineer, you will need to reach out to a technical person. Or if you need to mass-produce an item, you will have to team up with a manufacturer.

Here is a seven-step checklist — including finding a manufacturer and pricing strategies — you can use for your own product development. A major point the article highlights is that when you’re actually crafting the product, you should focus on two things: simplicity and quality. Your best option isn’t necessarily to make the cheapest product, even if it lowers manufacturing cost. Also, you need to make sure the product can grab someone’s attention quickly.

When you are ready to do product development and outsource some of the tasks make sure you:

  1. Retain control of your product and learn constantly. If you leave the development up to someone else or another firm without supervising, you might not get the thing you envisioned.
  2. Implement checks and balances to reduce your risk. If you only hire one freelance engineer, there’s a chance that no one will be able to check their work. If you go the freelance route, use multiple engineers so you don’t have to just take someone at their word.
  3. Hire specialists, not generalists. Get people who are awesome at the exact thing you want, not a jack-of-all-trades type.
  4. Don’t put all your eggs in one basket. Make sure you don’t lose all of your progress if one freelancer leaves or if a contract falls through.
  5. Manage product development to save money. Rates can vary for engineers depending on their specialties, so make sure you’re not paying an overqualified engineer when you could get the same end result for a much lower price.

To help you have peace of mind, start learning as much as you can about the production, so you can improve the process and your hiring decisions as time goes along.

This process will be very different for service-focused entrepreneurs, but no less important. You have several skills that people are willing to pay you for right now, but those skills can be hard to quantify. How can you establish yourself and your abilities? You might consider creating a portfolio of your work — create a website to show your artwork if you’re an artist, writing if you’re a writer or design if you’re a designer.

Also, make sure you have the necessary certificates or educational requirements, so that when someone inquires about your service, you’re ready to jump at a good opportunity.

9. Start building your team.

To scale your business, you are going to need to hand off responsibilities to other people. You need a team.

Whether you need a partner, employee or freelancer, these three tips can help you find a good fit:

  1. State your goals clearly. Make sure everyone understands the vision and their role within that mission at the very start.
  2. Follow hiring protocols. When starting the hiring process you need to take a lot of things into consideration, from screening people to asking the right questions and having the proper forms. Here is a more in-depth guide to help you.
  3. Establish a strong company culture.  What makes a great culture?  What are some of the building blocks? You can see our list of 10 examples of companies with great cultures, but keep in mind that you don’t need to have Google’s crazy office space to instill a positive atmosphere. That’s because a great culture is more about respecting and empowering employees through multiple channels, including training and mentorship, than it is about decor or ping-pong tables. In fact, office perks can turn out to be more like traps than real benefits.

Related: 10 Online Careers You Can Start Today With Basically No Money

10. Find a location.

This could mean an office or a store. Your priorities will differ depending on need, but here are 10 basic things to consider:

  1. Style of operation. Make sure your location is consistent with your particular style and image.
  2. Demographics. Start by considering who your customers are. How important is their proximity to your location? If you’re a retail store that relies on the local community, this is vital. For other business models, it might not be.
  3. Foot traffic. If you need people to come into your store, make sure that store is easy to find. Remember: even the best retail areas have dead spots.
  4. Accessibility and parking. Is your building accessible? Don’t give customers a reason to go somewhere else because they don’t know where to park.
  5. Competition. Sometimes having competitors nearby is a good thing. Other times, it’s not. You’ve done the market research, so you know which is best for your business.
  6. Proximity to other businesses and services. This is more than just about foot traffic. Look at how nearby businesses can enrich the quality of your business as a workplace, too.
  7. Image and history of the site. What does this address state about your business? Have other businesses failed there? Does the location reflect the image you want to project?
  8. Ordinances. Depending on your business, these could help or hinder you. For example, if you’re starting a daycare center, ordinances that state no one can build a liquor store nearby might add a level of safety for you. Just make sure you’re not the one trying to build the liquor store.
  9. The building’s infrastructure. Especially if you’re looking at an older building or if you’re starting an online business, make sure the space can support your high-tech needs. If you’re getting serious about a building, you might want to hire an engineer to check out the state of the place to get an objective evaluation.
  10. Rent, utilities and other costs. Rent is the biggest facilities expense, but check out the utilities, as well, and whether they’re included in the lease or not. You don’t want to start out with one price and find out it’s going to be more later.

Once you know what to look for and it’s time to start searching for a place that fits all of your qualifications, these four tips can help.

  1. Think on your own timeframe. Landlords are starting to offer shorter-term office rentals. Don’t get stuck in a long-term lease if it doesn’t make sense for your business.
  2. Play the whole field. There are all sorts of places to use — co-working spaces, office business centers, sublets and more. Keep your options open.
  3. Click around town. You might be able to find the perfect place by using online resources.
  4. Do the deal on your terms. Again, you have options. Don’t get roped into something that makes you uncomfortable.

After you have a location, you can focus on the aesthetic. You can check out a few design ideas here.

11. Start getting some sales.

No matter your product or industry, your business’s future is going to depend on revenue and sales. Steve Jobs knew this — it’s why, when he was starting Apple, he spent day after day calling investors from his garage.

There are a ton of different sales strategies and techniques you can employ, but here are four tenets to live by:

  1. Listen. “When you listen to your clients/customers, you find out what they want and need, and how to make that happen,” says investor and entrepreneur John Rampton.
  2. Ask for a commitment, but don’t be pushy about it. You can’t be too shy to ask for a next step or to close a sale, but you also can’t make customers feel as though you’re forcing them into a sale.
  3. Don’t be afraid of hearing “no.” As former door-to-door salesman (and now co-founder of software business Pipedrive) Timo Rein said, “Most people are too polite. They let you make your pitch even if they have no interest in buying. And that’s a problem of its own. Time is your most important resource.”
  4. Make it a priority. As entrepreneurial wizard Gary Vaynerchuk said, “Actually creating revenue, and running a profitable business, is a good strategy for business. Where are we that people think users or visits or time on site is the proxy to a successful business?”

But how do you actually make those sales? Start by identifying targets who want your product or service. Find early adopters of your business, grow your customer base or put out ads to find people who fit your business. Then, figure out the right sales funnelor strategy that can convert these leads into revenue.

12. Grow your business.

There are a million different ways to grow. You could acquire another business, start targeting a new market, expand your offerings and more. But, no growth plan will matter if you don’t have the two key attributes that all growing companies have in common.

First, they have a plan to market themselves. They use social media effectively through organic, influencer or paid campaigns. They have an email list and know how to use it. They understand exactly who they need to target — either online or off — with their marketing campaigns.

Then, once they have a new customer, they understand how to retain them. You’ve probably heard many people state that the easiest customer to sell to is the one you already have. Your existing customers have already signed up for your email list, added their credit card information to your website and tested what you have to offer. In doing so, they’re starting a relationship with you and your brand. Help them feel as good about that relationship as possible.

Start by utilizing these strategies, which include investing in your customer service and getting personal, but realize your work will never be done. You’ll constantly be competing for these customers in the marketplace, and you can never simply rest on your laurels. Keep researching the market, hiring good people and making a superior product and you’ll be on your way to building the empire you always dreamed about.

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តាមសំណើសុំវិនិយោគរបស់ក្រុមហ៊ុន គណៈកម្មាធិការតំបន់សេដ្ឋកិច្ចពិសេសកម្ពុជា នៃក្រុមប្រឹក្សាអភិវឌ្ឍន៍កម្ពុជា បានសម្រេចចេញ “វិញ្ញាបនប័ត្រចុះបញ្ជីជាស្ថាពរ” ជូនដល់ក្រុមហ៊ុនដូចខាងក្រោម៖
១) “Pro-Water International (Cambodia) Co., Ltd.”: គម្រោងបង្កើតរោងចក្រផលិតសម្ភារៈបរិក្ខារ គ្រឿងបង្គុំអាងហែលទឹក និងអាងប្រព្រឹត្តិកម្មទឹកស្អាត, មានទីតាំងវិនិយោគស្ថិតនៅក្នុងតំបន់សេដ្ឋកិច្ចពិសេសព្រះសីហនុ ខេត្តព្រះសីហនុ, មានទុនវិនិយោគប្រមាណ ៥,២លានដុល្លារអាមេរិក និងអាចបង្កើតការងារបានចំនួន ៤២៥នាក់។
២) “Re Theng Tobacco Co., Ltd.”: គម្រោងបង្កើតរោងចក្រផលិតបារី, មានទីតាំងវិនិយោគស្ថិតនៅក្នុងតំបន់សេដ្ឋកិច្ចពិសេសដ្រេហ្គនឃីងបាវិត ខេត្តស្វាយរៀង, មានទុនវិនិយោគប្រមាណ ១,១៤លានដុល្លារអាមេរិក និងអាចបង្កើតការងារបានចំនួន ២១៥នាក់។

តាមសំណើសុំវិនិយោគរបស់ក្រុមហ៊ុន គណៈកម្មាធិការវិនិយោគកម្ពុជា នៃក្រុមប្រឹក្សាអភិវឌ្ឍន៍កម្ពុជា បានសម្រេចចេញ “វិញ្ញាបនប័ត្រចុះបញ្ជីជាស្ថាពរ” ជូនដល់ក្រុមហ៊ុនដូចខាងក្រោម៖
១) “TIMBERMET (CAMBODIA) CO., LTD.”: គម្រោងបង្កើតរោងចក្រកាត់ដេរសម្លៀកបំពាក់, មានទីតាំងវិនិយោគស្ថិតនៅផ្លូវ២២៤ ភូមិត្រពាំងថ្លឹង សង្កាត់ចោមចៅ ខណ្ឌពោធិ៍សែនជ័យ រាជធានីភ្នំពេញ, មានទុនវិនិយោគប្រមាណ ២,៣៤លានដុល្លារអាមេរិក និងអាចបង្កើតការងារបានចំនួន ៨៥៤នាក់។
២) “PANEFORT (CAMBODIA) GARMENT CO., LTD.”: គម្រោងបង្កើតរោងចក្រកាត់ដេរសម្លៀកបំពាក់, មានទីតាំងវិនិយោគស្ថិតនៅភូមិព្រែកត្រែង ឃុំសំរោងធំ ស្រុកកៀនស្វាយ ខេត្តកណ្តាល, មានទុនវិនិយោគប្រមាណ ៦,៤៦លានដុល្លារអាមេរិក និងអាចបង្កើតការងារបានចំនួន ២.០៥០នាក់។

23550116_556807861329924_8661568396753261825_o

23519068_556807857996591_2737286238074033370_n

តាមសំណើសុំវិនិយោគលើគម្រោងបង្កើតរោងចក្រកាត់ដេរសម្លៀកបំពាក់របស់ក្រុមហ៊ុន “FUSHUN CAMBO FASHION CO., LTD” គណៈកម្មាធិការវិនិយោគកម្ពុជា នៃក្រុមប្រឹក្សាអភិវឌ្ឍន៍កម្ពុជា បានសម្រេចចេញ “វិញ្ញាបនប័ត្រចុះបញ្ជីជាស្ថាពរ” ជូនដល់ក្រុមហ៊ុនខាងលើ ដែលមានទីតាំងវិនិយោគស្ថិតនៅភូមិកណ្តឹងតូច ឃុំកណ្តឹង ស្រុកបាទី ខេត្តតាកែវ មានទុនវិនិយោគប្រមាណ ២,៤៥លានដុល្លារអាមេរិក និងអាចបង្កើតការងារបានចំនួន ១.០៦៩នាក់។

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ចង់បើកសិប្បកម្មផលិតទឹកសុទ្ធ តើត្រូវរត់ច្បាប់ដូចម្តេច?

បងប្អូនអាជីវករមួយចំនួន ដែលកំពុងសំឡឹងរកឪកាសវិនិយោគ ប្រហែលពុំទាន់ដឹងច្បាស់ ថាបើចង់បើកសិប្បកម្មផលិតទឹកសុទ្ធ តើត្រូវរត់ច្បាប់ដូចម្តេច? ពាក់ព័ន្ធនឹងក្រសួងណាខ្លះនោះទេ? CAMBIZIAN CONSULTANT សូមរៀបរាប់ត្រួសៗអំពីក្រសួងដែលពាក់ព័ន្ធដូចតទៅ៖

  1. ក្រសួងឧស្សាហកម្ម និងសិប្បកម្ម៖ ក្រសួងមួយនេះ ជាអាណាព្យាបាល លើសិប្បកម្មខ្នាតតូច និងអាជីវកម្មទាំងឡាយណា ដែលទាក់ទងនឹងវិស័យផលិតកម្ម។ ក្រសួងនេះជាអ្នកវាយតម្លៃ ថាតើផលិតផលដែលបានផលិតចេញដោយគ្រឹះស្ថានរបស់លោក-អ្នក គោរពតាមស្តង់ដារគុណភាព ដែលមិនប៉ះពាល់ដល់សុខភាពរបស់ប្រជាពលរដ្ឋ ឬយ៉ាងណា។
  2. ក្រសួងពាណិជ្ជកម្ម៖ ក្រសួងនេះ មានភារកិច្ចគ្រប់គ្រងការចុះបញ្ជីធ្វើអាជីវកម្មថ្មីគ្រប់ប្រភេទ នៅក្នុងព្រះរាជាណាចក្រកម្ពុជា ទាំងអាជីកម្មខ្នាតតូច មធ្យម និងធំ។ បើខកខានមិនបានចុះបញ្ជីពាណិជ្ជកម្ម នៅទីនេះ អាជីវកម្មរបស់លោក-អ្នក នឹងមិនអាចដំណើរការដោយស្របច្បាប់បានទេ។ បើគ្មានវិញ្ញាបនប័ត្រចុះបញ្ជីពីក្រសួងពាណិជ្ជកម្ម អគ្គនាយកដ្ឋានពន្ធដារក៏មិនទទួលចុះបញ្ជីពន្ធដារ និងប៉ាតង់ឲ្យអាជីវកម្មរបស់លោក-អ្នកបានដែរ។
  3. អគ្គនាយកដ្ឋានពន្ធដារ៖ ជាកន្លែងដែលត្រូវស្នើសុំចុះបញ្ជីពន្ធដារ ប៉ាតង់ និងប្រថាប់ត្រា។ ស្ថាប័នមួយនេះ ជាអ្នកតាមដាន ត្រូតពិនិត្យរាល់ការបង់ពន្ធ ពីអាជីវកម្មរបស់លោកអ្នក ចូលថវិការជាតិ។ ក្រោយពេលចុះបញ្ជីរួចរាល់ លោកអ្នកនឹងត្រូវបង់ពន្ធប្រចាំខែ និងប្រចាំឆ្នាំនៅតាមសាខាពន្ធដារណាមួយ អាស្រ័យលើអាសយដ្ឋានអាជីវកម្មរបស់លោក-អ្នក។

ប្រសិនបើលោកអ្នកមានចម្ងល់ទាក់ទងនឹងការបើកអាជីវកម្មផ្សេងៗ លោក-អ្នកអាចទាក់ទង ដើម្បីទទួលបានការប្រឹក្សាយោបល់អាជីវកម្ម ជាមួយជំនាញការផ្នែកប្រឹក្សាយោបល់របស់ក្រុមហ៊ុន CAMBIZIAN CONSULTANT តាមរយៈលេខទូរស័ព្ទ ដែលមានភ្ជាប់ជូនក្នុងរបារ CONTACT ខាងលើ។

 

Business Re-registration: what and why?

You may wonder what the Business Re-registration is, and why it is important to your business. It is actually a requirement for the existing businesses registered under the laws of Kingdom of Cambodia before January 01, 2016 (paper-work registration) to register again electronically into the government’s new online system.

The recent administrative reforms in the Ministry of Commerce, which is the business registrar, is one of the ambitious objectives made by the government to put everything away from paper work and to make everything available online. All business that were registered before January 01, 2016 are required to register their business again into the new government platform, otherwise resulting in some forms of penalty.

Finding that putting everything online is a challenge for the small, traditional business, CAMBIZIAN Consultant is please to help our clients re-register their business into the aforementioned online system.

តើនាំចូលផលិតផលអី្វខ្លះ ដែលតម្រូវឲ្យមានអជ្ញាប័ណ្ណនាំចូល?

ពាណិជ្ជករនាំចូលទំនិញពីបរទេស ដែលកំពុងប្រកបអាជីវកម្ម​ប្រចាំថ្ងៃ​នៅក្នុង​ព្រះរាជាណាចក្រកម្ពុជា ប្រហែលជាមាន​មន្ទិល​សង្ស័យ អំពីបែបបទ​នៃការនាំចូល​ផលិតផល​សម្រាប់ដាក់លក់នៅក្នុងទីផ្សារ​កម្ពុជា ពិសេស​ទាំងទងនឹង​អជ្ញាប័ណ្ណនាំចូល។ តាមរយៈបទពិសោធន៍ដែល CAMBIZIAN Consultant បានជួបប្រទះ តាមរយៈការប្រឹក្សាយោបល់​ជាមួយអាជីវករ និងពាណិជ្ជករ ពួកគាត់ហាក់មិនទាន់យល់ច្បាស់ថា ហេតុអ្វីផលិតផលខ្លះត្រូវមាន​អជ្ញាប័ណ្ណនាំចូល? ហេតុអ្វីទំនិញខ្លះមិនចាំបាច់មានអជ្ញាប័ណ្ណ? តើទំនិញប្រភេទណាខ្លះ​តម្រូវឲ្យមានអជ្ញាប័ណ្ណនាំចូល? តើត្រូវទៅសុំអជ្ញាប័ណ្ណ​ពីកន្លែងណា? ដោយរបៀបណា?

ថ្ងៃនេះ CAMBIZIAN Consultant សូមបង្ហាញអំពីទំនិញបួនប្រភេទ ដែលតម្រូវឲ្យមានអជ្ញាប័ណ្ណនាំចូល និងទីតាំងដែលត្រូវស្នើសុំអជ្ញាប័ណ្ណ៖

  1. ផលិតផលសុខាភិបាល និងសម្ភារសុខាភិបាល៖ ការនាំចូលផលិតផលដែលស្ថិតក្នុងក្រុមនេះ ត្រូវសុំអជ្ញាប័ណ្ណពីក្រសួងសុខាភិបាលនេះព្រះរាជាណាចក្រកម្ពុជា។ ផលិតផលប្រភេទនេះរួមមាន៖ ថ្នាំពេទ្យ ផលិតផលសុខភាព សម្ភារបរិក្ខាពេទ្យ ជាដើម។
  2. ផលិតផលប្រើប្រាស់ដើម្បីបម្រើក្នុងវិស័យកសិកម្ម៖ ឧទាហរណ៍នៃផលិតផលក្នុងក្រុមនេះរួមមាន ជីសម្រាប់ប្រើប្រាស់ក្នងវិស័យកសិកម្ម ថ្នាំសម្លាប់សត្វល្អិត ថ្នាំបង្ការជម្ងឺរផ្សេង។ល។ ផលិតផលប្រភេទនេះតម្រូវឲ្យមានការអនុញ្ញាតពីក្រសួងកសិកម្ម រុក្ខាប្រម៉ាញ់ និងនេសាទ។
  3. សភាវុធ ផលិតផលជាតិផ្ទុះ និងយានយន្ត ព្រមទាំងសម្ភារសម្រាប់ដល់វិស័យយោធា៖ តម្រូវឲ្យមានអជ្ញាប័ណ្ណពីក្រសួងការពារជាតិ។
  4. មាស ប្រាក់ និងត្បូងថ្មមានតម្លៃ៖ រួមមានគ្រឿងអលង្ការ មាស ពេជ្យ ត្បូង ទទឹម ផ្លាទីន ពែក ។ល។ ការនាំចូលផលិតផលប្រភេទនេះតម្រូវឲ្យមានអជ្ញាប័ណ្ណពីធនាគារជាតិនៃកម្ពុជា។

បើលោកអ្នកមានចម្ងល់ទាក់ទងនឹងការនាំចូលផលិតផល សម្រាប់ដាក់លក់នៅលើទីផ្សារកម្ពុជា លោកអ្នកអាចទាក់ទងផ្ទាល់ មកកាន់ក្រុមហ៊ុន CAMBIZIAN Consultant  ដើម្បីស្វែងយល់ព័ត៌មានលម្អិត តាមរយៈលេខទូរស័ព្ទ អ៊ីម៉ែល ឬបំពេញក្នុងទម្រង់ស្នើសុំខាងក្រោម។ សូមអរគុណ!

 

តើនាំចូលផលិតផលអី្វខ្លះ ដែលតម្រូវឲ្យមានអជ្ញាប័ណ្ណនាំចូល?

ពាណិជ្ជករនាំចូលទំនិញពីបរទេស ដែលកំពុងប្រកបអាជីវកម្ម​ប្រចាំថ្ងៃ​នៅក្នុង​ព្រះរាជាណាចក្រកម្ពុជា ប្រហែលជាមាន​មន្ទិល​សង្ស័យ អំពីបែបបទ​នៃការនាំចូល​ផលិតផល​សម្រាប់ដាក់លក់នៅក្នុងទីផ្សារ​កម្ពុជា ពិសេស​ទាំងទងនឹង​អជ្ញាប័ណ្ណនាំចូល។ តាមរយៈបទពិសោធន៍ដែល CAMBIZIAN Consultant បានជួបប្រទះ តាមរយៈការប្រឹក្សាយោបល់​ជាមួយអាជីវករ និងពាណិជ្ជករ ពួកគាត់ហាក់មិនទាន់យល់ច្បាស់ថា ហេតុអ្វីផលិតផលខ្លះត្រូវមាន​អជ្ញាប័ណ្ណនាំចូល? ហេតុអ្វីទំនិញខ្លះមិនចាំបាច់មានអជ្ញាប័ណ្ណ? តើទំនិញប្រភេទណាខ្លះ​តម្រូវឲ្យមានអជ្ញាប័ណ្ណនាំចូល? តើត្រូវទៅសុំអជ្ញាប័ណ្ណ​ពីកន្លែងណា? ដោយរបៀបណា?

ថ្ងៃនេះ CAMBIZIAN Consultant សូមបង្ហាញអំពីទំនិញបួនប្រភេទ ដែលតម្រូវឲ្យមានអជ្ញាប័ណ្ណនាំចូល និងទីតាំងដែលត្រូវស្នើសុំអជ្ញាប័ណ្ណ៖

  1. ផលិតផលសុខាភិបាល និងសម្ភារសុខាភិបាល៖ ការនាំចូលផលិតផលដែលស្ថិតក្នុងក្រុមនេះ ត្រូវសុំអជ្ញាប័ណ្ណពីក្រសួងសុខាភិបាលនេះព្រះរាជាណាចក្រកម្ពុជា។ ផលិតផលប្រភេទនេះរួមមាន៖ ថ្នាំពេទ្យ ផលិតផលសុខភាព សម្ភារបរិក្ខាពេទ្យ ជាដើម។
  2. ផលិតផលប្រើប្រាស់ដើម្បីបម្រើក្នុងវិស័យកសិកម្ម៖ ឧទាហរណ៍នៃផលិតផលក្នុងក្រុមនេះរួមមាន ជីសម្រាប់ប្រើប្រាស់ក្នងវិស័យកសិកម្ម ថ្នាំសម្លាប់សត្វល្អិត ថ្នាំបង្ការជម្ងឺរផ្សេង។ល។ ផលិតផលប្រភេទនេះតម្រូវឲ្យមានការអនុញ្ញាតពីក្រសួងកសិកម្ម រុក្ខាប្រម៉ាញ់ និងនេសាទ។
  3. សភាវុធ ផលិតផលជាតិផ្ទុះ និងយានយន្ត ព្រមទាំងសម្ភារសម្រាប់ដល់វិស័យយោធា៖ តម្រូវឲ្យមានអជ្ញាប័ណ្ណពីក្រសួងការពារជាតិ។
  4. មាស ប្រាក់ និងត្បូងថ្មមានតម្លៃ៖ រួមមានគ្រឿងអលង្ការ មាស ពេជ្យ ត្បូង ទទឹម ផ្លាទីន ពែក ។ល។ ការនាំចូលផលិតផលប្រភេទនេះតម្រូវឲ្យមានអជ្ញាប័ណ្ណពីធនាគារជាតិនៃកម្ពុជា។

បើលោកអ្នកមានចម្ងល់ទាក់ទងនឹងការនាំចូលផលិតផល សម្រាប់ដាក់លក់នៅលើទីផ្សារកម្ពុជា លោកអ្នកអាចទាក់ទងផ្ទាល់ មកកាន់ក្រុមហ៊ុន CAMBIZIAN Consultant  ដើម្បីស្វែងយល់ព័ត៌មានលម្អិត តាមរយៈលេខទូរស័ព្ទ អ៊ីម៉ែល ឬបំពេញក្នុងទម្រង់ស្នើសុំខាងក្រោម។ សូមអរគុណ!

Summary: Cambodian Intellectual Property Law

CAMBODIAN ADOPTED IP LAWS:

  • Law on Marks, Trade Names, and Acts of Unfair Competition (2002), procedural sub-decree (2006)
  • Law on Patents, Utility Model Certificates, and Industrial Designs (2003) , procedural sub-decree (2006)
  • Law on Copyright and Related Rights (2003)
  • Law on Plant Variety Protection (2008)
  • Prakas on Geographical Indication Registration (2009)

IP LAWS REMAINING TO BE PASSED:

  • Law on Trade Secret and Undisclosed Information
  • Law on Geographical Indications
  • Law on Compulsory Licensing for Public Health
  • Law on Integrated Circuits and Layout Design

IP TREATY MEMBERSHIP

  • Paris Convention for the Protection of Industrial Property (1883)
  • WIPO Convention (1967)
  • Agreement on Trade-Related Aspects of Intellectual Property Rights (1994)
  • Convention on Biological Diversity (1992)

……………………………………………………………………………………………………………………………………………

Intellectual property is a vital asset for many firms doing business in Cambodia. Whether it be to distinguish goods from those of a competitor, protecting the fruits of research investment, or maintaining the confidentiality of financial plans, IP considerations surface in virtually all industries.

Cambodia’s 2004 accession to the World Trade Organization prompted the adoption of several laws regulating intellectual property rights. While it will be a number of years before Cambodia comes into full WTO compliance, investors can take advantage of this developing regulatory framework and seek out protection for their inventions, trademarks, industrial designs, and other creative products.

Although the laws are still in the early stages of development, relatively efficient procedures for registering and enforcing important IP rights are in place. Ignoring or postponing registering IP assets can be very costly in the long run.
This publication provides an overview of the principal areas of IP in Cambodia. Where there is no specific law – such as trade secrets or right of publicity – relevant articles of other laws are discussed. For more specific information, the reader is directed to our individual publications on each of the major IP regimes.

Trademarks

Trademarks allow their owners to prevent others from using identical or confusingly similar marks on their goods and services. Every enterprise operates under a trade name, and most also have trademarks that are separately protectable.

Indeed, registering and enforcing one’s trademarks is crucial to differentiating one’s products from those of competitors. While unregistered trade names receive a degree of protection, proper registration is a virtual necessity for any successful business.

Trademarks and related IPRs are protected under the Law on Marks, Trade Names and Acts of Unfair Competition of 2002. The Law lists the steps for registering a trademark and the scope of protection. An applicant who has already registered a mark in another member country of the Paris Convention will have priority in registering the mark in Cambodia.

The application process begins with the filing of an application form, fifteen specimens of the mark, and if filed by an agent, an original notarized power of attorney. Unless the application is rejected and requires an appeal, it usually takes about six months from filing to issuance of the final certificate.

Registrations are valid for ten years, renewable for successive ten-year terms. In the year following the fifth annivesary of the initial registration date, and each renewal registration date, the mark owner must submit an Affidavit of Use or Non-Use, and pay an official fee.

The Law also provides procedures for opposing, invalidating, and cancelling the marks of third parties. This can be crucial to prevent others from registering marks that are confusingly similar to one’s own.

A trademark owner has the right to prevent others from infringing their mark. The three main enforcement options are: i) sue in civil court for money damages and/or specific relief, ii) request the customs authorities to suspend clearance of imported infringing goods, and iii) seek criminal prosecution and/or fines.

Trademark law is the most developed field of IP in Cambodia. Though enforcement could be improved, registration procedures are well established and routinely practiced.

Patents & Utility Models

Patents and utility models protect the technical aspects of inventions. To receive a patent or utility model, the invention must be new and industrially applicable. For a patent, the invention must also involve an inventive-step, meaning it is not obvious to one skilled in the art. This is the key difference between the two – a utility model can be obvious, whereas a patentable invention cannot.

The Law on Patents, Utility Models and Industrial Designs (2003) governs this area of IP. A protectable invention can be any idea which permits in practice the solution to a specific problem in the field of technology. The Law categorically excludes certain types of inventions, such as scientific theories and mathematical formulae. It also excludes inventions which are not socially “useful”, as they would harm public health or morality, such as illegal narcotics.

In exchange for a patent or utility model, the inventor must disclose the invention to the public. This way the body of public knowledge increases, and is available to all once the term of protection expires.

Patents last for 20 years from the date of filing. Utility models are valid for only 7 years. As utility models are less inventive than patented inventions, they are deemed to merit a shorter term of exclusivity. Owners of either must pay an annual maintenance fee to keep the registration alive.

Patent applications are filed with the Department of Industrial Property of the Ministry of Industry, Mines, and Energy (MIME). While Cambodia is not a party to the Patent Cooperation Treaty, the Law provides a procedure for registering foreign applications in Cambodia.

Patent owners need to be aware that their rights are subject to revocation and abridgement by the government. The Ministry has the right to exploit a patented invention itself, or allow a third party to do the same, to promote the public interest (e.g. national defense, nutrition, health, and development).

Further, holders who delay in exploiting their inventions risk having the government grant others licenses without their permission. Looking to the future, the government is currently considering a new law on compulsory licenses for certain drug patents.
The owner of a patent has the right to exclude others from making, importing, selling, stocking, offering for sale, and using infringing products. Both licensees and the patent owner have the right to bring a civil suit, seeking monetary damages and injunctive relief. The Law, however, does not provide a procedure for suspension of customs clearance for infringing goods.

Industrial Designs

Industrial designs protect a product’s special appearance, so long as it is new. The owner has the right to exclude others from exploiting the design, by making or selling it, for example.

The design can be a composition of lines or colors, a three-dimensional shape, or a novel material. Any technical product features are not protected, as that is the domain of patent law. Nor does it extend in a way that leaves no freedom as to arbitrary features of appearance.

As with patents and utility models, industrial designs are registered with the Department of Industrial Property of the Ministry of Industry, Mines, and Energy. In practice, the registration procedures are very similar.

Industrial design registrations last for a period of five years from the filing date, renewable for two further consecutive five-year terms, for a total of fifteen years.
Industrial designs are closely related to both copyrights and trademarks. In fact, there is significant overlap amongst the three, though each covers a different aspect of the product.

Copyright

Cambodia’s Law on Copyright and Related Rights (2003) provides protection for original works of authorship. Books, sculptures, architecture, computer programs, paintings, photographs, musical compositions and many other types of work are governed by the Law.

Authors have both economic and moral rights to their works. Economic rights relate to the commercial exploitation of the work, and allow the author to prevent others from making copies or derivative works.

For most authors, the economic rights expire fifty years after their death. Special rules apply for anonymous, pseudonymous, posthumous, collective, and audiovisual works.
Moral rights, on the other hand, are perpetual and non-transferable. They allow an author to prevent the destruction or modification of their work, to insist on public attribution as the author, and to decide on the manner and timing of the work’s publication.

The Law limits these rights in a number of ways. For instance, reproducing a work for non-commercial educational or private home use is generally permitted. Contrary to public perception, copyright is not an absolute right to prohibit all uses of one’s work.
Unlike trademarks, patents, and most other IPRs, there is no need to register a copyright. Works are protected automatically from the time of creation.

Nevertheless, there is a voluntary deposit procedure to register works with the Ministry of Culture and Fine Arts. Though the Law does not require, nor specify any particular advantage to registering, it could help in enforcing one’s rights in administrative or judicial proceedings.

Geographical Indicators

A geographical indication is a name or sign used on certain products which corresponds to a specific location, where the quality or reputation of the goods is essentially attributable to its place of origin. Examples of well-known geographical indications include Champagne, Florida Oranges, and Prosciutto di Parma. With a registered GI, regional producers should be better able to distinguish their goods from those of competitors, and hopefully charge a premium price.

Since early 2009, GIs are registrable with the Ministry of Commerce under an interim regulation, as the National Assembly considers a full GI law to comply with its WTO obligations.

As part of the registration procedure, the applicant must submit a Book of Specifications detailing the geographical area, production conditions, and qualification process for the products. Both domestic and foreign GIs can be registered. The initial term of protection is for ten years, renewable indefinitely.

Thus far, there have been two GI registrations – Kampot Pepper and Palm Sugar from Kompung Speu.

Trade Secrets

A trade secret is typically defined as any commercially valuable information that is not known, nor readily ascertainable, and is subject to reasonable efforts to maintain its secrecy.

Cambodia has no law specific to trade secrets, though a draft is under consideration. Nevertheless, provisions in a variety of laws impose duties of confidentiality and penalties for divulgence of commercial secrets.

Non-disclosure agreements are often used to maintain the confidentiality of information that needs to be shared, with an employee or contractor for example. Such agreements are contracts like any other, and should be enforceable under the Contract Law (1988).
The Law on Commercial Enterprises (2005) prohibits the unauthorized publication of a firm’s financial statements. The Law on Audit (2000) also imposes a duty of confidentiality on government auditors.

The Law on Banking and Financial Institutions (1999) prohibits certain people from disclosing any confidential information in accounting or administrative documents. The Law provides for criminal penalties of up to five years imprisonment and 250 million riels (approximately $62,000) in fines.

As in virtually every country, the Law on the Bar (1995) requires lawyers to maintain client confidences.

Finally, the Penal Code (2009) contains several provisions on point. Under the Code, any person who holds, by reason of their position, profession, function or mission, confidential information, and divulges such information, is subject to criminal prosecution. The Law also criminalizes the intercepting of mail, tapping into telephone calls, and hacking of computer networks.

Right of Publicity

The right of publicity allows an individual to prohibit or control the use of his identity for commercial purposes. This would prohibit, for instance, placing on a product’s package a photograph of someone without their permission.There is no law in Cambodia specifically on point, nor are any drafts currently under consideration.

The unauthorized use of someone’s identity for commercial purposes may be considered a form of unfair competition, in violation of “honest practice”. However, to the author’s knowledge, this has never been tested in a Cambodian court of law.

Perhaps the only legal provision treating the right of publicity is Article 26 of the Law on Copyright and Related Rights (2003), which prohibits unauthorized biographies.

Unfair Competition

Acts of unfair competition are prohibited under a separate chapter of the Trademark Law. These provisions are short, broad and vague. Any act of competition contrary to “honest practices” in business is prohibited. The law then lists three types of behavior as specifically, but non-exclusively, forbidden:

  • All acts which create confusion with the establishment, the goods, or services of a competitor;
  • False allegations which discredit a competitor’s goods or services; and
  • Indications or allegations which are liable to mislead the public as to the nature, manufacturing process, characteristics, suitability, or quantity of goods.

As with much of Cambodian law, there appears to have been no official interpretation or precedential cases explaining these provisions.

Cambodia’s Investment Law (August 05, 1994)

LAW ON INVESTMENT (August 05, 1994)

AND LAW ON THE AMENDMENT TO THE LAW ON INVESTMENT_030324

KINGDOM OF CAMBODIA

Nation Religion King

 

LAW ON INVESTMENT OF THE KINGDOM OF CAMBODIA (August 05, 1994)

AND

LAW ON THE AMENDMENT TO THE LAW ON INVESTMENT

OF THE KINGDOM OF CAMBODIA

(March 24, 2003)

CHAPTER 1

GENERAL PROVISIONS

Article 1: New

This law governs all Qualified Investment Projects and defines procedures by which any person establishes a Qualified Investment Project.

Only Qualified Investment Projects are entitled to the benefits subject to the scope of this Law.

Article 2: New

Within the meaning of this Law, the following terms shall be defined as follows:

“Qualified Investment Project” or “QIP” means an investment project which has received a Final Registration Certificate.

“Export QIP” means a Qualified Investment Project whose production is exported to be determined by Sub-Decree.

“Supporting Industry QIP” means a Qualified Investment Project which has its entire production (100%) supplying export industry as substitution for the regularly imported raw materials or accessories.

“Working day” means any calendar day which is an official working day of the Royal Government of Cambodia.

“Cambodian Entity” means a company which has a place of business and registered in the Kingdom of Cambodia and 51% or more of the shares of the company are held by a person with Cambodian nationality.

“Person” means any natural or juristic person.

“Conditional Registration Certificate” means the document issued by the Council under the paragraph 3 of the new Article 7 of this Law.

“Final Registration Certificate” means the document issued by the Council for the Development of Cambodia under the paragraph 7 of the new Article 7 of this Law.

“Investment Proposal” means the proposal submitted by any person to the Council for the Development of Cambodia with the purpose to establish a QIP.

“Applicant” means any person or group of persons submitting an Investment Proposal to the Council for the Development of Cambodia.

“Investor” means any person who carries on a Qualified Investment Project.

CHAPTER 2

THE COUNCIL FOR THE DEVELOPMENT OF CAMBODIA

Article 3:

The Council for the Development of Cambodia is the sole and One-Stop Service organization responsible for the rehabilitation, development and the oversight of investment activities. The council for the Development of Cambodia is the Royal Government’s “Etat-Major” responsible for the evaluation and the decision-making on all rehabilitation, development and investment project activities.

Article 4:

The Council for the Development of Cambodia comprises the following two operational boards:

1-     The Cambodian Rehabilitation and Development Board; and

2-     The Council for the Development of Cambodia

Article 5:
The organization and functioning of the council for the Development of Cambodia shall be specified by Sub-Decree.

CHAPTER 3

INVESTMENT PROCEDURES

Article 6: New

All persons wishing to establish a QIP shall submit an Investment Proposal to the Council for the Development of Cambodia in the form and according to the procedures provided in this Law and the Sub-Decree.

Article 7: New
Within three (03) working days of the Council’s receipt of the Investment Proposal, the Council shall issue to the Applicant a Conditional Registration Certificate or a Letter of Non-Compliance.

The Council shall issue the Conditional Registration Certificate if the Investment Proposal contains all the information required under the Sub-Decree, and if the proposed activity is not in the Negative List set out in the Sub-Decree.  However, if the Investment Proposal does not satisfy the above condition, the Council shall issue a Letter of Non-Compliance to the Applicant.

The Conditional Registration Certificate shall specify the approvals, authorizations, clearances, licenses, permits or registrations required for the QIP to operate, as well as the government entities responsible to issue such approvals, clearances, licenses, permits or registrations.  The Conditional Registration Certificate shall also confirm the incentives that the QIP is entitled to under new Article 14 of this Law and recognize the statutes of the legal entity, which will undertake the QIP.

If the Council for the Development of Cambodia fails to issue a Conditional Registration Certificate or Letter of Non-Compliance within three working days, the Conditional Registration Certificate shall be considered to be automatically approved in the form set out in the Sub-Decree.

The Council for the Development of Cambodia shall obtain all of the licenses from relevant ministries-entities listed in the Conditional Registration Certificate on behalf of the Applicant.

All government entities responsible for issuing an authorization, clearance, license, permit or registration listed on the Conditional Registration Certificate shall issue such document no later than the 28th working day from the date of the Conditional Registration Certificate. Any government official who, without proper reason, fails to respond to an Applicant’s request by this deadline shall be punished by law.

The Council for the Development of Cambodia shall issue a Final Registration Certificate within 28 working days of its issuance of the Conditional Registration Certificate.  Issuance of the Final Registration Certificate does not release the QIP from obtaining any other approvals specified by competent ministries-entities.  Even upon the lapse of the 28 working days deadline as stipulated in the paragraph 6 above, all competent entities shall issue approvals as prescribed by laws and regulations.  The date of issuing the Final Registration Certificate shall be the date of QIP commencement.

All Letters of Non-Compliance shall clearly state the clear reasons why the Investment Proposal was not acceptable as well as the additional information required to enable the Council to issue a Conditional Registration Certificate.

CHAPTER 4

INVESTMENT GUARANTEES

Article 8: New

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 as set forth in the Land Law.

Article 9:

The Royal Government shall not undertake nationalization policy, which shall adversely affect private properties of investors in the Kingdom of Cambodia.

Article 10: New

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

Article 11:

In accordance with the relevant laws and regulations issued and published to the public by the National Bank of Cambodia, the Royal Government shall permit investors with investments in Cambodia to purchase foreign currencies through the banking system and to remit abroad these currencies for the discharge of financial obligations incurred in connection with their investments. This concerns the following payments.

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

2-     Payment of royalties and management fees;

3-     Remittance of profits; and

4-     Repatriation of invested capital in compliance with Chapter 8.

CHAPTER 5

INVESTMENT INCENTIVES

Article 12: New

The Royal Government shall make available incentives under this Chapter to Qualified Investment Projects.

Article 13:

Incentives and privileges shall include the exemption, in whole or in part, of custom duties and taxes.

Article 14: New

Incentives provided for in Article 13 shall include as follow:

  1. A QIP shall be entitled to exemption from the tax on profit imposed under the Law on Taxation by obtaining a profit tax exemption period.

The tax exemption period is composed of a Trigger Period + 3 years + Priority Period.  Priority Period shall be determined in the Financial Management Law.

The maximum Trigger Period is to be first year of profit or three years after the QIP earns it first revenue, whichever is sooner.

  1. The entitlement of a QIP under the paragraph 1 above shall be subject to the QIP obtaining from the Council an annual certificate of obligation satisfaction before the State which shall be specified by the Sub-Decree.
  2. A QIP shall be subject to a profit tax rate after its tax exemption period as determined in the Law on Taxation
  3. A QIP which uses the entitlement under the paragraph 1 above shall not be entitled to claim any special depreciation under the Law on Taxation.
  4. A domestically oriented QIP shall be entitled to import production equipment and production input construction materials, exempt of duty which shall be specified by the Sub-Decree.
  5. Export QIPs other than an Export QIP which elects or which has elected to use the Customs Manufacturing Bonded Warehouse mechanism, shall be entitled to import production equipment, construction materials, raw materials, intermediate goods, and production input accessories, exempt of duty which shall be specified by the Sub-Decree.
  6. A “Supporting Industry” QIP shall be entitled to import production equipment, construction materials, raw materials, intermediate goods and production input accessories, exempt of duty which shall be specified by the Sub-Decree.
  7. A person which has acquired, or merged with, an investor, may on application to the Council for the Development of Cambodia inherit all, and any, guarantees, rights, privileges and obligations from the investor’s QIP, subject to the merger or acquisition procedures which shall be specified by the Sub-Decree.
  8. A QIP which is located in a designated SPZ or EPZ listed in a development priority list issued by the Council shall be entitled to the same incentives and privileges as other QIPs stipulated in this law.
  9. A QIP shall be entitled to 100% exemption of export tax, except for activities as stipulated in laws in effective.
  10. A QIP is entitled to obtain visas and work permits for the employment in the Kingdom of foreign citizens as managers, technicians and skilled workers, and residency visas for the spouses and dependants of those foreign nationals as authorized by the Council for the Development of Cambodia and in compliance with the Immigration and Labor Laws.

Article 15: New

The rights, privileges and entitlements of a QIP may not be transferred or assigned to any third party except by acquisition or merger as stipulated in the paragraph 8 of the new Article 14.

CHAPTER 6

LAND OWNERSHIP AND USE

Article 16: New

Ownership of land by investors for the purpose of carrying on a QIP shall be vested in natural persons holding Cambodian citizenship or in Cambodian Entities.

Use of land shall be permitted to investor, including concessions, unlimited long-term    leases and limited short-term leases which are renewable, in compliance with the provisions of the Land Law.

Investors shall have the right to own and pledge as security and transfer the real and personal property situated upon the land and land which the QIP uses, for a period no longer than the period determined in a land concession contract or land lease agreement as permitted by Law.

Investors cannot transfer or pledge any longer the land concession, which has not been in operation.

CHAPTER 7
EMPLOYMENT PRACTICES

Article 17:

Investors in the Kingdom of Cambodia shall be free to hire Cambodian nationals and foreign nationals of their choosing in compliance with the labor and immigration laws.

Article 18: New

Investors shall be allowed to hire foreign employees provided that:

–     The qualification and expertise are not available in the Kingdom of Cambodia among the Cambodian populace. In the event of such hiring, appropriate documentation including photocopies of the employee’s passport, certificate and/or degree and a curriculum vitae shall be submitted to the Council for the Development of Cambodia,

–     A letter asserting needs for hiring the foreign employees shall be required. Investors shall obtain an approval and a permit from the Ministry of Social Affairs, Labor, Vocational Training and Youth Rehabilitation,

–     Before working for investors, the foreign employee shall hold a permit for work in the Kingdom of Cambodia, issued by the Ministry of Social Affairs, Labor, Vocational Training and Youth Rehabilitation.

Investors shall perform the following obligations:

–     Provide adequate and consistent training to Cambodian staff,

–     Promotion of Cambodian staff to senior positions will be made over time.

Article 19:

Foreign employees shall be allowed to remit abroad their wages and salaries earned in the Kingdom of Cambodia, after payment of appropriate tax, in foreign currencies obtained through the banking system.

CHAPTER 8

DISPUTES AND DISSOLUTION

Article 20: New

Except for land-related disputes, any dispute relating to a QIP concerning its right and obligations set forth in the law shall be settled amicably as far as possible through consultation between the Council for the Development of Cambodia, the investors and any other party involved in the dispute.

If the parties failed to reach an amicable settlement within two months from the date of the first written request to enter such consultations, the dispute shall be brought by either party for:

–         Conciliation before the Council which shall provide its opinion, or

–         Arbitration in or outside of Cambodia as agreed by both parties, or

–         Trial by the tribunals of the Kingdom of Cambodia.

Article 21: New

If an investor intends to end its activities in the Kingdom of the Cambodia, it shall inform the Council for the Development of Cambodia through either a registered letter or a hand delivered letter stating the reason of such a decision, and signed by the investor or his attorney-in fact.

Article 22: New

If an investor intends to stop the activity of its QIP without judicial procedures, the investor shall provide proof to the Council that the QIP has properly settled its debts, including any complainants and claims from the Ministry of Economy and Finance, before the investor is allowed to officially stop the activities of the QIP or dissolve according to the applicable commercial law.

Article 23: New

Once the QIP is allowed to stop its activity either within the judicial procedures or not, the investor can transfer the remaining proceeds of their assets overseas or use them in the Kingdom of Cambodia.  However, in the event that the QIP had used machineries and equipment that were imported duty free for less than five years, the QIP shall have the obligations to pay the duties applicable to those machineries and equipment, according to the determination of the Sub-Decree.

NEW CHAPTER 9

TRANSITIONAL PROVISIONS

Article 24: New

All investments authorized under the Law on Investment promulgated by Royal Kram No. 03/NS/94 dated August 05, 1994 and Sub-Decrees shall be considered to be Qualified Investment Projects as stipulated in this Law and relevant Sub-Decrees.

An QIP entitled to a tax on profit rate of 9% before the promulgation of this Law and which has commenced the investment activity in respect of which the approval was granted, shall be entitled to that 9% tax rate for five tax years commencing from the fiscal year after the promulgation of this Law, subject to the Investors submitting in each fiscal year after the promulgation of this law a certificate of obligation satisfaction before the State, which shall be specified by the Sub-Decree as stipulated in the paragraph 2 of the new Article 14.

A QIP entitled to an exemption of tax on profit before promulgation of this Law, and whose entitlement has been approved in writing by the Council, shall continue to be entitled to that profit tax exemption, subject to the Investors submitting in each fiscal year after the promulgation of this Law a certificate of obligation satisfaction before the State, which shall be specified by the Sub-Decree as stipulated in the paragraph 2 of the new Article 14.

NEW CHAPTER 10

FINAL PROVISIONS

Article 25: New

Where the QIP violates or fails to comply with the conditions stipulated by the Council for the Development of Cambodia, the Council shall have the power to withdraw the privileges and incentives granted to him, in whole or in part.

Article 26: New

Any provisions contrary to this Law shall be abrogated.

Article 27: New

This Law shall be promulgated immediately.

This law is adopted by the National Assembly

of the Kingdom of Cambodia in

Phnom Penh on February 3, 2003

during the ninth plenary session of the second legislature.

 

Phnom Penh, February 4, 2004

Chairman of the National Assembly

Norodom Ranariddh