Nearly 50,000 companies and enterprises – with a total registered share capital of more than $18 billion – have been successfully registered through the Online Business Registration Service (OBR) since the system was implemented five years ago.
The OBR system was launched in three phases. The first phase was launched in June 2020, with the participation of six government institutions: the Ministry of Interior, Ministry of Economy and Finance, Ministry of Commerce, Ministry of Labor and Vocational Training, General Department of Taxation and the Council for the Development of Cambodia.
Phase 2 – rolled out in September 2001 – and phase 3 – from June 2023 – expanded the number of participating institutions. As of now, a total of 21 ministries and government institutions are involved, offering 33 core business-related public services.
According to a finance ministry report, June 15 was the fifth anniversary of the OBR system.
It noted that the system has significantly streamlined the business registration process, contributed to improving the business climate and supported the development of a digital economy in Cambodia. The OBR platform has been continuously strengthened and expanded to cover a wide range of electronic services for business (ESB).
The ministry added that as of May 31, the total number of approved business registrations had reached 46,776, with a total registered capital of 74.72 trillion riel (approximately $18.23 billion). Among the registered companies/enterprises, 17,240 (or 37%) are female-owned.
The report also included a breakdown of the registered capital.
Accommodation services equalled $1.56 billion (8.54%), real estate activities (using owned or leased property) was $1.46 billion (8.02%), while building construction totalled $1.42 billion (7.82%).
Garment manufacturing (excluding animal fibre-based clothing) attracted $892 million (4.9%) in capital, while management consultancy services were $884 million (4.85%).
“This system has brought many benefits to entrepreneurs by reducing procedures, time and certain service fees. Applicants can successfully register their business within just 8 working days, provided they submit accurate and complete information and required documents,” it added.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on June 16 that this progress reflects the government’s efforts to encourage and attract all businesses operating in Cambodia to register, noting that registration provides benefits to both business owners and the government.
He added that for business owners, registration ensures legal recognition, access to technical and vocational training, and possible government incentives. For the government, it improves management, tax collection and facilitates the design of support policies, along with providing clear data to share with potential investors in various sectors.
“When businesses are registered, it creates convenience for both the government and the private sector. More importantly, it helps curb or reduce the sale of untraceable goods or undercutting practices resulting from a lack of tax transparency,” he said.
Chhin Ken, president of the Cambodia Digital Tech Association (CDTA), previously noted that stronger business law frameworks, simplified and accessible registration procedures, and digital literacy among business owners have helped boost registration rates.
“When all businesses are officially registered, it fosters fairer competition, brings benefits to both government and the private sector, and helps reduce illegal operations and tax evasion practices,” he added.
