This Business Guide for Cambodia has
been researched and written by the law firm DFDL / Mekong Law Group.
The firm has offices in Phnom Penh and Vientienne, Laos. For more
information on the firm's legal services, please contact:
DFDL / Mekong Law Group No 45, Preah
Suramarit Blvd Post Office Box 7 Phnom Penh,
Cambodia Tel: (855-23) 428-726; 360-545 Fax:
(855-23) 428-227 Email: dfdl-pp@bigpond.com.kh
Contact: Mr. David
Doran Mr.
Hem Hour
Naryth Mr.
Kong Chhung
Investment in Cambodia is a
straightforward and open process. It can be as easy as forming a
company through registration of the corporate documents at the
Ministry of Commerce. However, most investors will want to reap the
benefits of the tax incentives offered under the Law on Investment
of August 1994 and the Sub-Decree on the Implementation of the
Investment Law, promulgated on December 29, 1997. To do so, an
investment project will need to obtain approval from the Council for
the Development of Cambodia (CDC).
The incentives offered in the Investment
Law provide a significant financial benefit to approved projects.
Nearly all approved projects will receive a corporate profit rate of
9% (as compared to the standard rate of 20%). Duty free import of
raw materials and other materials used for the investment project is
also available. Finally, a tax holiday of up to eight years may be
awarded, depending on the size of the project, sector, location,
employees and other criteria.
The incentives awarded by the CDC,
however, do come at a certain price. The CDC requires that the
approved investment enterprise undertake its project in a timely
manner. To ensure that such progress is made, a performance
guarantee must be deposited at the National Bank and the investment
enterprise must periodically report to the CDC on its progress.
Failure to meet the CDC requirements may result in loss of
incentives and the performance guarantee.
It is important to note that the
Sub-Decree only applies to projects approved by the CDC. Investors
who form a company at the Ministry of Commerce without obtaining a
CDC investment license would not be subject to the terms of the
Sub-Decree.
Sectors Not Eligible
for Investment Incentives
Not all projects are eligible for
investment incentives. In addition, within some of the promoted
sectors, only projects with an investment capital over a certain
amount are eligible for incentives. Most sectors require a minimum
of US$1 Million of investment capital. Promoted sectors range from
agriculture to manufacturing, construction, civil works and
hotels.
Activities for which incentives are not
available are trading activities, transportation services, duty free
shops, restaurants and entertainment venues, business centers, media
activities, retailers and wholesalers, and professional
services.
Investments can still be made by a foreign
or Cambodian investor in these ineligible sectors or in other
non-promoted sectors, but such investments are not eligible for an
investment license and incentives from the CDC.
Investment
Guarantees
The Investment Law and Sub-Decree contain
a number of important guarantees for the investor, as follows:
Equal treatment of all investors.
No nationalization adversely affecting the property of
investors.
No price controls on products or services produced by licensed
investors.
Remittance of foreign currencies abroad.
Investment
Incentives
The following incentives are available to
investment projects in Cambodia:
Nine percent corporate profit tax.
Up to eight year exemption from corporate profit tax.
Five year loss carry-forward.
Exemption from import duties for the period of construction of
the project and first year of business operation.
Tax free repatriation of profits.
Tax free distribution of dividends and profits.
Employment of foreign expatriates where no qualified
Cambodians are available.
The two key incentives are the exemption
from import duties and the eight year tax exemption. Both of these
incentives are "negotiable" in the sense that the investor must
present a strong fact-based position to the CDC to obtain the
maximum period available under the law.
** Note : The Government is
currently reviewing the investment incentives and it is quite
possible that some of the current incentives available to investors
may be amended / removed in the not-to-distant future.
Available Forms of
Business Enterprise
The most popular form of business entity
for foreign investors in Cambodia is the company limited by shares.
Unlike many regional countries, Cambodia does not place formal
restrictions on the level of foreign participation in Cambodian
companies. As a result, a greater proportion of investors choose to
establish 100% foreign-owned limited companies in Cambodia than in
many other developing nations.
The usual forms are summarized in the
accompanying chart below, followed by a more detailed examination of
each form. It is important to note that although partnerships are
permitted under a Instructional Circular, their actual registration
does not appear to be practiced as of this date.
Form
Definition
Pros
Cons
LIMITED LIABILITY COMPANY
Closely held company in which liability of shareholders is
limited to capital contribution
Widely accepted
Minimum capital at 20 Million Riels (about US$5,500)
Acceptable for CDC approved investment project
Flexible forms
More appropriate for closely held companies
Taxable activities in Cambodia
Transfer of shares restricted
BRANCH OFFICE
Division of offshore parent company
Simplifies internal, legal and accounting structure
Not acceptable for CDC investment project
Exposes parent to liabilities of branch
Limited to special cases
Taxable activities in Cambodia
REPRESENTATIVE OFFICE
Local representative of offshore company
Rapid approval with minimum legal documentation
No taxable activity in Cambodia
Not acceptable for CDC investment project
Scope of permissible activity limited
Lacks legal definition
Cannot invoice
Cannot engage in business activities in Cambodia
BUILD OPERATE AND TRANSFER(BOT)
Contractual relationship usually for undertaking
infrastructure project
Lower administrative burdens
Only permissible for government project
Liability of offshore contractor unclear
Tax exposure of offshore contractor unclear
BUSINESS COOPERATION CONTRACT(BOC)
Contractual relationship with government entity
No legal entity required
Acceptable for CDC approved investment project
Reduces administrative burdens
Only permissible with government entity
Liability of contracting parties unclear
Tax exposure of offshore contractor unclear
2. GETTING SETTLED
Visas
Persons wishing to enter Cambodia may
apply for a visa at a Cambodian embassy or consulate overseas. There
are seven categories of non-immigrant visas. The most common are the
Tourist Visa (category "K"), Diplomatic Visa (Category "A"),
Official Visa (Category "B") and the Ordinary Visa (Category "E").
The ordinary visa is the visa under which most business persons
would enter Cambodia. Person entering Cambodia to undertake a
technical assistance contract would obtain a Category B visa.
Tourist Visas and Ordinary Visas may be issued at the Airport.
However, Diplomatic and Official Visa must be obtained through the
Ministry of Foreign Affairs and International Cooperation, of a
Cambodian embassy.
The period of authorized stay for any
foreigner entering Cambodia is one month for Tourist and Ordinary
(i.e. business) Visas, and three months for Diplomatic and Official
Visas.
Extensions of non-tourist visas are
possible upon application to the Department of Foreigners, Ministry
of Interior or at the Ministry of Foreign Affairs for United Nations
staff and those employed by humanitarian organizations. Extensions
can be obtained for most categories of visas for up to one year.
Repeated extensions are permitted for certain categories - such as
Ordinary Visas for business persons. For expatriate employees, the
individual must present his/her labor permit and work card as issued
by the Ministry of Labor, as well as proof of employment.
The Cambodian Investment Board (CIB) has
an office to assist investors in obtaining long term Ordinary Visas
for their employees. However, it is also possible to obtain the visa
directly from the Ministry of Interior. The fee will vary depending
on the length of the extension. At present, it is not possible to
obtain a long term employment visa outside Cambodia as the required
paperwork is only obtainable in-country. These documents include the
labor books and work permits, as well as a Health Certificate issued
by the Health Department of the Ministry of Labor. These
requirements must be met regardless of whether the employee obtains
a visa through the CIB offices or from the Ministry of Interior.
Once the required documentation is
submitted, and the fees paid, a visa extension is usually obtainable
within two weeks. The official visa fees are listed in the following
chart:
Official Fees as of September 1999 for
Visa Extensions
LENGTH OF EXTENSION
FEE
One Month
US$30
Three Months
US$60
Six Months
US$100
Twelve Months
US$180
Cambodian
Citizenship
Cambodian citizenship may be obtained
through marriage to a Cambodian citizen or through a naturalization
process. Although the requirements for such naturalization have been
specified by the Nationality Law, the sub-decree required to
establish the specific procedures has not yet been issued. In spite
of this gap, some individuals have obtained citizenship on a case by
case basis.
3. HIRING STAFF
Personal Income Tax
(Salary Tax)
Any payment of salary from an employer to
an employee resident in Cambodia gives rise to the salary tax. The
tax is a debt of the individual taxpayer that is collected through a
monthly withholding procedure by the employer at the time of each
salary payment. Both employee and employer are jointly responsible
for the payment of the tax regardless of whether the salary is paid
in Cambodia or overseas. If no withholding is made by the employer,
the employer will be held liable even if the tax is subsequently
paid directly by the employee. If the employer is overseas, the
fiscal representative of the employer in Cambodia is charged with
ensuring the withholding of the salary tax before the salary is paid
to the employee.
Salary Tax Rates
Monthly Salary in Riel
(3800 Riel = 1 US$)
Rate
500,000 ($132) to 1,250,000 ($329)
5%
1,250,001 ($329) to 8,500,000 Riel
($2,237)
10%
8,500,001 ($2,237) to 12,500,000 ($3,289)
15%
Above 12,500,000 ($3,289)
20%
These rates are applied such that a salary
of US$4,000 per month would be taxed at all four rates: 0% for the
amount from US$0-132; 5% for US$132 to 329; 10% for US$329 to 2,237;
etc.
Foreign
Employees
The 1994 Investment Law allows businesses
approved under that Law to employ foreign nationals and bring in
their dependents. However, permission will be granted only where the
qualification and expertise needed cannot be found in Cambodia.
The employment of foreign nationals is
also regulated by the 1997 Labor Law. Only foreigners satisfying the
following conditions may be lawfully employed:
Hold a "Labor Book" and "Work Permit" issued by the Ministry
of Labor;
Have entered Cambodia legally;
Have the right to reside in Cambodia;
Hold a valid passport;
Have good reputation and good behavior;
Have the physical qualifications for the job;
Have no communicable diseases.
The Ministry of Labor has established a
labor book and work permit mechanism and employers are required to
submit various documentation needed to have the Ministry of Interior
issue long term visas to foreign workers. There are no limitations
on appointing foreign workers to higher level positions. However, a
ceiling of 10% foreigners in an employer's total workforce is
enforced, with exceptions being made upon a showing of need to the
Ministry of Labor.
Reporting
Requirements
According to the 1997 Labor Law,
businesses must submit written notice to the Ministry of Labor when
starting and terminating their operations and when hiring and
dismissing employees. The Law details this process and the Ministry
of Labor has issued form notices for meeting these requirements. All
businesses must maintain a "Book of Labor Charges", a "Declaration
of Personnel" and a "Book of the Establishment". The format for each
of these is suggested by the Ministry of Labor (although some
modifications may be made) and each must be approved by the Labor
Inspector. In addition, each enterprise with eight or more employees
must have established Internal Rules which address issues such as
application procedures, salary information, leave policies,
disciplinary matters and the like. These Internal Rules must also be
approved by the Labor Inspector.
Employment
Contracts
Both written and oral employment contracts
are valid under Cambodian law for Cambodian nationals. Employment of
foreigners requires a written contract. A written contract cannot be
for more than two years or it becomes a contract of unlimited
duration. The probationary period for new employees cannot be longer
than one month for non-specialized labor, two months for specialized
labor and three months for regular staff.
The employment contract may be terminated
by either party if proper notice is given, subject to a number of
exceptions detailed in the Law. The employer must have reasonable
cause to terminate the contract. The Law sets out various notice
requirements based on the length of employment, ranging from four
days to three months.
The employer may be liable to compensate
the employee upon termination, depending on the circumstances of
termination. First, the employer is responsible for paying the
employee's salary during the statutory notice period. Second,
severance pay is owed when an employer dismisses an employee, except
where the employee has committed a "serious offense" or the
employment contract permits dismissal, in an amount ranging from
seven days' to six months' salary. The length of the notice period
and the amount of termination benefits depend upon the length of the
employee's service with the employer. The employee may also be
entitled to additional compensation for unreasonable ("wrongful")
termination, if so decided by a court.
Collective layoffs are permissible due to
a reduction in business or an internal reorganization. Labor
Inspectors must be consulted on collective layoff procedures and
criteria used. The Labor Laws specifies the order in which employees
must be laid off.
Finally, employers must issue the employee
an employment certificate upon termination. The employment
certificate describes the nature of the work performed.
Labor/Trade
Unions
The 1997 Labor Law explicitly grants
workers and employers the right to form employee or employer
associations. Employers are forbidden to discriminate against
employees because of their membership in employee associations.
Employees are entitled to elect shop stewards, with their number
dependent on the number of employees. Certain procedures must be
followed by employers and employees for the election of shop
stewards.
The 1997 Labor Law gives workers the right
to strike. However, the decision to strike must be made by workers
through a secret ballot. Seven days notice of the strike must be
given to both the Ministry of Labor and the Employer. The strike
must be conducted at the work premises in a peaceful manner and
non-strikers must be allowed to work without restraint and threat.
Wages
Currently no minimum wage has been
established except for the garment industry. In that industry, the
minimum wage is set at US$45 per month. For all other employers, the
wage must ensure "a decent standard of living compatible with human
dignity" but no further specificity has been put into
place.
Mandatory Employee
Benefits
The terms of employment, such as
compensation, maximum working hours, vacation leave, maternity
leave, family leave, employee complaint process, night and holiday
work, medical care, and special rules governing child and women
employees, are stipulated by law. Maximum working hours are normally
eight hours per day and 48 hours per week, with overtime to be
compensated at 1.5 to 2.0 times the normal wage. Some variation in
the number of hours worked is permitted by regulation under certain
circumstances, provided that certain maximum numbers of hours worked
per day are enforced.
Annual leave is set at one and a half days
for each month of employment, resulting in 18 days of leave per
year, with an additional day for each additional three years of
employment. Maternity leave is mandatory for 90 days during which
the employee receives half salary if she has worked for at least one
continuous year. Special leave, to meet an employee's family needs
(such as weddings, funerals, etc.), is set at a maximum of seven
days per year. These leave days can be deducted from the employee's
annual leave (if such is available) or can be compensated for
through extra hours of work for which overtime payment is not
required.
Employers with at least 100 women
employees must either provide a nursing room and child care center
for babies or pay for child care if such a facility cannot be
installed.
Work Place
Safety
Employers are required to keep all work
areas clean and safe and ensure workers' health. They must comply
with a number of specific regulations governing the work place,
including the number and standard of toilets and the provision of
hygienic drinks. If there are accidents in which an employee is
injured, either at the work site or in a direct commute between the
home and work site, the employer is responsible for arranging and
paying for all medical care. In addition, the employer is required
to report all work place accidents to the Ministry of Labor to
enable the Ministry to investigate its circumstances and determine
means by which to prevent a re-occurrence.
If an employee is off work for more than
four days due to an injury or illness, the employee is entitled to
compensation, but the amount is not specified. If an injury is
crippling or results in permanent disability, the employee is
entitled to an annuity. In cases of disability, the employer must
make all payments due within five days of the accident. A Ministry
of Labor regulation sets out the procedure for determining the level
of disability, and the resultant amounts due based on the employee's
average wage, for various types of injuries. The proportionate
amount due to a surviving spouse and/or dependents is also
specified.
Although employers in Cambodia are
considered responsible for work place accidents, the Labor Law also
allows a court to reduce the amount of payment to a worker if it
determines the accident was largely caused by the employee's own
"serious fault." Conversely, the amount paid to the employee can be
increased if the employer was at "serious fault."
Resolution of
Employment Disputes
Disputes arising from an individual
employment relationship should be brought before the Labor Inspector
before any legal action is taken. The Labor Inspector will act as
arbitrator and attempt to reconcile the parties. If a satisfactory
solution cannot be found, then the dispute can be taken to the
courts.
In the event of a collective dispute, the
Labor Inspector is notified and the Ministry of Labor is required to
appoint a mediator within 24 hours of learning of the dispute.
Mediation can last up to 15 days. If mediation fails, the dispute is
resolved through the provisions in the collective bargaining
agreement. If there is no such agreement, then the dispute must be
resolved by an Arbitration Panel appointed by the Ministry of Labor
within three days of mediation failing. The Panel is required to
reach a decision within 15 days. Its decision may be appealed, but
the Labor Law is unclear if the appeal is to the Ministry of Labor
or to the courts.
Although the 1997 Labor Law allows for the
creation of Labor Courts with jurisdiction over labor matters, this
has not yet been done. Until the formation of such specialized
courts, the provisional and municipal courts must be used as final
forum for adjudication of Labor disputes and issuance of labor
rulings.
4. PAYING TAXES
This section only provides an overview of
the various taxes applicable in Cambodia. The investor should
consult an expert in developing its tax planning structure for
Cambodia.
Please note that this section only address
taxes affecting "real regime" taxpayers since nearly all investments
will be classified as subject to the "real regime". Portions of this
section may not apply to taxpayers outside the "real regime", unless
specifically indicated otherwise.
Summary of Taxes
Relevant to Business
Following is a chart of the major taxes
that are likely to impact a business in Cambodia:
Tax
Rate
Profit Tax
20% (unless investment incentive rate of 9%
or 0%)
Withholding Tax
15% (other rates for certain activities) of
payment
Salary Tax
5% to 20% of salary, 20% of fringe
benefits
Minimum Tax
1% of turnover
VAT
10%
Import Duty
Varies
Export Duty
Varies
Specific Tax on Certain Merchandise and
Services
2%, 10%, 20% or 30%, depending on the
item
Liability to Pay
Cambodian Taxes
All individuals or legal entities defined
as being a "resident taxpayer" under the law are liable for
Cambodian taxes. A physical person is a "Resident Taxpayer" when any
one of the following three criteria exist:
The person is domiciled in Cambodia
The person has a principal place of abode in Cambodia, or
The person is physically present in Cambodia for at least 182
days
A legal person is a "Resident Taxpayer"
when any of the following criteria exist:
has a principal place of business in Cambodia;
is organized or managed in Cambodia;
is a fixed place of business, the branch of a foreign company
or agent resident in Cambodia through whom a non-resident carries
on its business in Cambodia (a "Permanent Establishment"); or
any other association through which a non-resident engages in
economic activity in Cambodia (a "Permanent Establishment").
A "Permanent Establishment", as defined in
the third and fourth criteria above, is only taxable on Cambodian
Source Income.".
All "Resident Taxpayers" are required to
be registered with the Taxation Department, Ministry of Economy and
Finance. A resident taxpayer includes legal persons satisfying the
above criterion, whether or not such taxpayer is officially
recognized in Cambodia. A "Resident Taxpayer" may also be government
institutions, charitable organizations or non-profit
organizations.
Profit Tax
A profit tax is levied on all businesses
and is calculated on the basis of either actual profit or estimated
profit, depending on the tax regime applicable to the taxpayer.
Companies are all classed under the real regime of taxation and are
subject to a flat profit tax rate of 30% (solely for natural
resource exploitation), 20%, 9% or 0%. The standard corporate rate
is 20%. A 9% rate may be awarded to certain investments promoted by
the Cambodian Investment Board. The Investment Board may also grant
a tax holiday to certain projects for a maximum of eight years, thus
reducing the investor's effective profit tax rate to 0% for that
period.
Basis for Profit
Tax
Taxable profit is defined under Cambodian
law as the net profit obtained from all results of all types of
operations realized by the taxpayer, including capital gains from
the sale of various parts of the assets during the operation or at
the close of the business, as well as income from financial or
investment operations and interest, rental and royalty
income.
Profit Tax Rates
The following are the applicable profit
tax rates as of January 1999:
Profit realized from:
Rate
activities of business enterprises
20%
oil or natural gas production sharing contracts or
exploitation of natural resources
30%
activities of business enterprises granted profit tax
investment incentives by the Cambodian Investment Board
9%
activities of business enterprises granted a tax holiday
by the Cambodian Investment Board (the tax holiday cannot be
for more than eight years)
0%
activities of sole proprietorships, based on graduated
scale
0-20%
gross premiums for insurance companies insuring Cambodian
risk
5%
Deductions
Allowable deductions include legitimate
expenses incurred in the operation of a business, including:
rent
interest
compensation to employees
payments or reasonable fees paid for services to an officer,
director, partner or relative
fixed tangible assets that are deductible through depreciation
charitable contributions (up to 5% of taxable profit)
Expenses that are specifically not allowed
to be taken as deductions include:
any expense on activities of amusement, recreation or
entertainment
personal or living expenses (except fringe benefits subject to
withholding tax under tax on salary)
losses on the sale or exchange of property between related
persons
Withholding
Taxes
A series of new withholding taxes were
introduced by the 1997 Tax Law. All withholding taxes are payable by
the 15th day of the following month.
Withholding taxes arising from local
transactions made by a resident enterprise or a resident individual
(when the payment by such individual is made in the course of
carrying on a business in Cambodia) to a resident person
include:
15% on payment made to individuals for services provided
(management, consulting, etc.);
15% on payment of royalties for intangibles, oil, gas,
minerals and interest (except interest paid to domestic banks or
savings institutions);
10% on payment for rental of movable or immovable property;
and
5% on interest paid by local bank to resident individual with
non-fixed term account.
No withholding is levied on payments to
tax exempt entities such as charitable associations.
A flat rate of 15% must be withheld from
any payment of Cambodia source income to non-residents, whether
overseas or within Cambodia. For payments to entities that are not
registered in Cambodia, i.e., the entity is not "carrying on a
business" or does not have a permanent establishment in Cambodia,
the 15% withholding requirement is applicable
This withholding tax does not apply to
dividends which are taxed separately.
Income that is considered as "Cambodia
source income" is defined as:
interest on debt obligations issued by a resident or by the
government;
dividends received from a resident enterprise;
income received from services provided in Cambodia;
income received from the rental of real or personal property
for use in Cambodia;
royalties from the use or the right to use intangible property
in Cambodia;
gains from sale or transfer of interest in immovable property
in Cambodia;
gains from sale of movable property (other than inventory)
when seller is resident in Cambodia; and
premiums for insuring or reinsuring risk in Cambodia.
Dividends
Cambodian enterprises making a
distribution of dividends to shareholders must retain for payment to
tax authorities a percentage of the dividends to be distributed.
This percentage will be equivalent to the profit tax rate applicable
to the enterprise. Thus, most enterprises will have a dividend tax
liability of 20% while those enterprises granted profit tax
investment incentives by the Cambodian Investment Board will have a
dividend tax liability between 0 - 9%.
All advance dividend tax payments may be
credited against the profit tax liability of the withholding
enterprise for the fiscal year in which the tax is withheld. If the
credit exceeds the tax on profit it may be carried forward and
become a tax credit for the following year. The dividend tax is
actually deemed an "advance profits tax", not a withholding tax. It
is intended to be an advance payment of annual profit tax for
companies which distribute interim dividends. The tax withheld on
dividends is a final tax and the individual or enterprise receiving
the dividend is not required to pay a tax on the dividend
received.
Customs Duties
All goods imported to or exported from
Cambodia are subject, in principle, to import and export duties as
set by the Customs Department and to a consumption tax. Duties are
collected regardless of the point of entry or exit on all goods
crossing the border, except those specifically exempted from customs
duties by law or proper authorities. Exempted goods include:
personal effects of individuals when being transferred to
their normal residence;
goods exempted from duties by international treaty;
humanitarian aid;
goods imported for a wedding or funeral;
goods related to international relations; and
certain donations to senior monks.
Import Duties
Import duties are set by the Year 2000
Customs Tariff Schedules. Duty levels are typically 0%, 7%, 15%, 35%
and 50%. Most duties are between 7% and 35%. Under AFTA, duties will
be gradually reduced to 5% or less over 10 years.
Export Duties
At present there are no export duties
applied in Cambodia other than those levied on restricted export
products, such as timber, rubber, some forms of seafood and other
special items.
Specific Tax on
Certain Merchandise and Services
The Specific Tax on Certain Merchandise
and Services is levied in addition to import duties. For imported
goods, it is assessed at the time of importation of those goods; for
domestically produced goods, it is assessed in the month following
sale of those goods.
5. TAKING YOUR MONEY OUT
Currency and Foreign
Exchange
Cambodia is primarily a cash based economy
with checks and credit cards only rarely accepted commercially. The
national currency of Cambodia is the Cambodian Riel which has
remained fairly stable since the 1997 at about 3,800 to the U.S.
Dollar.
In spite of a 1992 sub-decree prohibiting
transactions denominated in foreign currencies, the U.S. Dollar
remains in common circulation and is freely traded throughout the
country.
There are currently no restrictions on the
repatriation of profits or capital derived from investments made in
Cambodia nor on most transfers of funds abroad. The 1994 Investment
Law guarantees that investors may freely remit foreign currencies
abroad for the purposes of:
payment for imports and repayment of principal and interest on
international loans;
payment of royalties and management fees;
remittance of profits; and
repatriation of invested capital on dissolution of an
investment project.
Under the Foreign Exchange Law of 1997,
foreign currencies may be freely purchased through the banking
system. The Law specifically states that there shall be no
restrictions on foreign exchange operations, specifically including
the purchase and sale of foreign exchange, transfers and all types
of international settlements. However, the Law does require that
these transactions be performed solely by authorized intermediaries.
These intermediaries are the lawfully established banks in Cambodia
which are required to report to the National Bank of Cambodia
transactions in excess of US$10,000. There is no requirement that
the investor sending or receiving the funds make a report on the
transaction. The burden rests solely on the bank as the authorized
intermediary.
It is important to note that while foreign
exchange transfers are not currently restricted, the Law does allow
the National Bank to implement exchange controls in a foreign
exchange crisis. The events that would constitute such a "crisis"
are not specified.
6. ABOUT DFDL IN CAMBODIA
Standard Legal
Services
DFDL provides a full range of commercial
and corporate legal services to foreign and local investors
operating in the Mekong Region. The firm provides local legal
expertise for every phase of an investment - from initial contacts,
licensing, negotiations with the government and joint venture
partners, land purchasing, leasing, and financing, to operational
issues such as labor, taxation, corporate governance and other
contractual matters. DFDL's clients include many of the major
investors in Cambodia.
While there are other firms in the region
that may handle the initial stages of the investment process, there
are few which have the practical local experience and the in-country
presence to advise at every stage of a client's business. Not only
are we well equipped to handle the "upstream" licensing and
negotiation stages of the investment process, but also the
"downstream" legal issues that arise on a day to day basis.
Labor Compliance Guide. We
also provide a Labor Compliance Guide: a loose-leaf,
"do-it-yourself" guide to assist company management and in-house
legal staff to manage day to day labor issues efficiently and
effectively. A sampling of our "upstream" services are:
Providing legal opinions on local law and procedures;
Obtaining business or project licenses;
Drafting joint venture agreements and other legal
documentation;
Incorporation and registration of companies; and
Assistance with legal aspects of financing and banking.
Our "downstream" services include the
following areas:
Labor law, employment contracts and related matters;
Ownership, lease, titling and registration of land;
Registration and protection of intellectual property;
Taxation;
Corporate governance;
Dispute resolution.
Phnom Penh Office
Lawyer and Legal Adviser Profiles
Mr. David D. Doran is the managing
director of the Phnom Penh office, and a member of the California
and Washington State Bars in the United States. He has a Doctor of
Jurisprudence degree from the University of Washington School of
Law, where he was an editor of the Washington Law Review. Mr.
Doran also has a post-doctoral degree in law and economics from
L'Institut Universitaire de Hautes Etudes Internationales, in
Geneva, Switzerland. Before joining DFDL, Mr. Doran worked as a
legal consultant in Baker & McKenzie's Indochina Practice Group
in Bangkok. He has written many articles on Cambodian law and
investment topics in various law, business and news publications. He
was also named as one of Asia's "Leading Lawyers" by AsiaLaw in
1997. Mr. Doran specializes in cross border mergers and
acquisitions, and investment projects in the real estate, hotel,
agro-industry, manufacturing and other sectors. He is not admitted
to practice law in Cambodia. Languages: English and French.
Ms Lynn Peever holds a Bachelor of
Law (LL.B.) and a Graduate Diploma in Legal Practice from the
Australian National University. Lynn is admitted to practice law in
the Australian Capital Territory and the High Court of Australia.
Her background is in public sector law and industrial relations. In
Cambodia, she specializes in labor, trademark and general corporate
law. She also has a certificate in mediation and provides mediation
services to our clients. She is not admitted to practice law in
Cambodia.
Mr. Hem Hour Naryth has worked
closely with DFDL since 1995 as an associate counsel. He joined DFDL
as lawyer in May 1999, after having established his own successful
private practice with the "Angkor Law Group". Before becoming an
attorney, Naryth was a medical doctor and then a Chief Financial
Controller for the Minister of Economy and Finance. He has studied
economics in Vienna, Austria and law in Lyon, France under various
scholarships. Naryth will complete his LL.B at the National
Institute of Management in Cambodia in 2000. He is a member of the
Mekong Law Group and specializes in land development projects and
commercial litigation. He also is a member of the Cambodian Bar
Association. Languages: Khmer; French; English.
Mr. Ry Ouk is a lawyer with DFDL's
Phnom Penh office. He received his Bachelor of Laws (LL.B.) from the
University of Otago, New Zealand, and is completing final research
for a Master of Laws degree from Monash University, Australia. Ry is
a member of the New Zealand and Cambodia Bars. Languages: Khmer and
English.
Mr. Kong Chhung completed four
years of study at the Faculty of Law of Phnom Penh before the Khmer
Rouge vacated the city in 1975. In 1995, Chhung was one of the first
group of lawyers to receive their "Certificate d'Aptitude la
Profession d'Avocat" issued by the Ministry of Justice and is now a
member of the Cambodian Bar Association. He is also a member of the
Mekong Law Group. Languages: Khmer, French and English.
Ms. Mao Samvutheary is a lawyer
with over three years of experience in litigation and a variety of
commercial matters. She is admitted to the Cambodian Bar
Association. Languages: Khmer and English.
Ms Cecilia Huang is a legal
assistant for the Chinese Practice Group. She studied Social
Sciences at Marianopolis College in Montreal, Canada and was a
member of the law club. Cecilia received her Bachelor's Degree in
Arts, Psychology from York University. In 1997, she became a student
at the National Institute of management in Cambodia, where she
studies law. Languages: Chinese (Mandarin, Taiwanese), English,
French and Spanish.
Ms. Roberta Thami holds a Juris
Doctor degree from Northeastern University School of Law in
Massachusetts, USA and is a member of the Texas, Massachusetts and
District of Columbia Bars. After working four years at DFDL as a
senior attorney, Ms Thami now works on a part time basis. She is not
admitted to practice law in Cambodia.
Firm Contact
Information
CAMBODIA
LAOS
Mr. David Doran Mr. Hem Hour
Naryth Mr. Kong
Chhung
DFDL / Mekong Law
Group No 45, Preah Suramarit
Blvd Post Office Box 7 Phnom
Penh, Cambodia Tel: (855-23) 428 726; 360
545 Fax: (855-23) 428 227 Email:
dfdl-pp@bigpond.com.kh
Mr. David Doran Ms. Mary
Flipse Dirksen Flipse Doran &
Le
