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Cambodian Legal Update: Commercial Law – New Rules on Associations

Cambodian Legal Update: Commercial Law – New Rules on Associations

April 3, 2018

On 7 March 2018, the Ministry of Commerce (“MOC”) issued Prakas No. 088 MOC (“Prakas 088”) regarding the filing of business association statutes.

According to Prakas 088, as part of ongoing obligations after registration with the government authorities, all business associations must file their statutes with the MOC. The filing must include their statutes as well as other required documentation, such as, among others, general meeting minutes to establish the association, specimen of stamp and signature of the association’s president, and registration approvals. Business associations are also required to submit a report of their work activities annually to the provincial/municipal department of commerce where the association is located. They can also suspend their activities by notifying the MOC.

This filing requirement applies to all business associations, including foreign chambers of commerce, in Cambodia. Failure to file statutes with the MOC could result in the non-recognition of the association.

If there is any change in a business association’s corporate information, such as amendment of the statutes, change of registered address, or change of governing board structure, written notification must be provided to the MOC within 30 days of the change.

To avoid any rejection of legal recognition, all business associations are urged to file their statutes, submit annual reports of their activities, and notify the MOC of any changes as mentioned above.

If you have any questions regarding this legal update, or would like us to assist with filing your association’s statutes, notifying the MOC of any changes, or submitting an annual report, please contact me ([email protected]) or Mr. Alex Larkin ([email protected]). 

VDB Loi is a network of leading law and tax advisory firms with offices in Cambodia, Indonesia, Laos, Myanmar and Vietnam. We provide the highest quality solutions for transactions and taxation. Our general areas of practice are corporate, finance, licensing and disputes. Our principal specialized areas of practice are energy, infrastructure, real estate and construction, telecom, and taxation.

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Leung has over 15 years of experience advising both local enterprises and multinational corporations on banking, finance, M&A, employment, and insurance matters. He has assisted numerous clients in the financial, telecommunications and transportation industries with their M&A legal due diligence. He is particularly known for his deep knowledge of investment licensing, corporate law, commercial contracts and labor law.

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