Second Extension of Imposition of Penalties re: Application for E-Commerce Permit/Licence
On 3 March 2022, the Ministry of Commerce (“MOC“) issued Notification No. 0528 MOC.BRD on the Extension of the Imposition of Penalty in relation to the Application for E-Commerce Permit or License (“Notification“).
Per the Notification, all individuals, sole proprietorships, legal entities and branches of foreign companies (“Relevant Persons“) which carry out business activities through electronic platforms have until the end of June 2022 to apply for permits or licences for E-Commerce. Relevant Persons who carry out e-commerce activities without a permit or license will be subject to pecuniary fines and applicable penalties from 1 July 2022 onward.
Please note that this is the second extension of imposition of penalties in relation to the application for e-commerce permits or licences. The first extension, being until 1 March 2022, was set out in Notification No. 2908 MOC.BRD dated 1 December 2021.
Establishment of the Cambodia Competition Commission
On 17 February 2022, the Cambodia Competition Commission (“CCC“) was established pursuant to the Royal Government of Cambodia’s Sub-Decree
No. 37 ANKr.BK on the Organisation and Functioning of the Cambodia Competition Commission (“Sub-Decree“). CCC, which comprises 15 members from different ministries, will be in charge of implementing the Law on Competition in furtherance of helping consumers to access high quality, low price, and versatile products and services. CCC will also be tasked to receive complaints in relation to competition.
The Sub-Decree sets out the process for the appointment and grounds for removal of members, and the duties and functions of CCC.
For more information, click here to read our Legal Update.
Rules on the Management, Establishment, and Functioning of Trust
On 26 January 2022, the Non-Banking Financial Service Authority issued a new prakas, Prakas No. 003 OSH/Prokor on Rules on the Management, Establishment and Functioning of Trust (“Prakas“). The Prakas aims to set out the rules, conditions, and procedures in controlling, organising, and operating a trust in Cambodia. It is applicable to the operation of all trusts and the conduct of all persons related thereto in Cambodia.
Under the Prakas, a trust is defined as “the management and disposal of Trust Fund provided for by a Trustor for the benefit of a beneficiary in accordance with the Trust Agreement or regulation in force“.
The establishment of a trust requires approval for registration from the Director General of Trust Regulator in accordance with the Law on Trust, the provisions of the Prakas, and other relevant regulations in force.
The management, disposal and safekeeping of trust assets shall be done in accordance with the trust agreement and relevant applicable regulations. Assets under trust shall not be used or otherwise disposed of for the discharge of liabilities or debts of the trustee or any other persons notwithstanding for the purpose of rehabilitation, voluntary liquidation or dissolution, bankruptcy or any other similar purposes.
Not later than six months from the date of the Prakas, all trustees which have registered to operate prior to this Prakas shall apply for a license and/or approval with the Trust Regulator. Within the same period, all trustors which have established but have not registered trusts with the Trust Regulator shall apply for the registration of such trusts and comply with the relevant procedures as may be determined by the Trust Regulator under the Prakas.
For more information, click here to read our Legal Update.
Construction Permit by the Minister of Land Management, Urban Planning and Construction: Formalities and Procedures
On 20 January 2022, the Minister of Land Management, Urban Planning and Construction (“MLMUPC“) issued Prakas No. 013 on Formalities and Procedures for the Issuance of Construction Permit by the Minister of Land Management, Urban Planning and Construction (“Prakas 013“). Prakas 013 sets out the formalities and procedures for the issuance and extension of construction permits by MLMUPC for the purpose of implementing Sub-Decree No. 224 ANKr.BK (“Sub-Decree 224“). Prakas 013 applies to construction works which require a construction permit from MLMUPC as stipulated under Article 4 of Sub-Decree 224.
Prakas 013 sets out the prescribed form for the request letter and required documents for an application for a construction permit. For property development projects, an application for a construction permit will require the following additional documents:
- Land development licence/permit issued by the competent authority; and
- Land development master plan issued by the competent authority.
For more information, click here to read our Legal Update.
Cambodia's New Law on Investment
On 15 October 2021, the new Law on Investment was promulgated by virtue of Royal Kram No. NS/RKM/1021/014 (“Law on Investment“) on an urgent basis, and has been in force since 16 October 2021 throughout the country. The Law on Investment abrogates the old Law on Investment and its amendment. It applies to all qualified investment projects (“QIPs“), expanded QIPs and guaranteed investment projects (collectively referred to as “Investment Projects“).
An application for an Investment Project must be submitted online to the Council for Development of Cambodia (“CDC“) or the Provincial-Municipal Investment Sub-Committees (“Sub-Committees“) via this link that brings the users to CDC’s information technology platform. CDC or the SubCommittees will issue a registration certificate (“Registration Certificate“) within 20 working days if such proposed Investment Project is not listed in the “negative list” of prohibited or restricted business lines or sector.
The Registration Certificate is tied to a bar code or QR code, or other technology system that provides preliminary information pertaining to the registered Investment Project. The registered Investment Project will be automatically implemented upon obtaining the Registration Certificate.
Any person whose sector/investment activity is (i) listed in the Law on Investment; (ii) does not belong to the negative list; and (iii) is certified as a QIP is eligible to obtain basic tax and/or customs duties incentives in whole or in part.
For more information, click here to read our Legal Update.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
