Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Startups discuss reduction in registration fees

Startups discuss reduction in registration fees

Local tech startups discussed a possible reduction in the Ministry of Commerce’s business registration fees at a meeting on Saturday, to ease the initial financial burden on their businesses, given the difficulty in raising funds in Cambodia’s nascent tech market.

The meeting, organised by Impact Hub, a global network of entrepreneurs, investors and students, discussed easing the cost of starting a business and introducing policies to enable young entrepreneurs, as well the development of the high-speed Internet in the Kingdom and locally-developed apps.

Sarath Uch, co-founder of Inoover, which deals with digital marketing, website and mobile app development, said applying for a business license and registering with the tax department add to the costs that entrepreneurs have to foot upfront.

“When I started my first startup company, Snappy Shot, I tried to talk with Singaporean investors who were interested. But they asked me for a business licence, [but] we couldn’t afford to pay $1,000 for the cost,” Uch said.

He added that countries, like Malaysia, had lower registration charges for new businesses and said the Ministry of Commerce should take similar steps to encourage entrepreneurship.

Kruy Vanna, founder of keyboard app Khmer Smart Keyboard, who also spoke at the meeting, said that in order to raise finances from international organisations, like USAID, registering with the ministry helped his business raise capital, over the $9,000 he collected through crowd funding efforts.

“Before we didn’t want to apply for license, but we thought it would be easier to talk with other companies. We were able to receive $3000 from USAID because we had registered the business” Vanna said.

Sok Piseth, president at the Young Entrepreneur Association in Cambodia, said the ministry was working with startups to introduce more enabling policies to help them grow, as well as take the registration process online for all new businesses.

“I don’t think a startup fails because of the cost of registration fees, [because] if we compare to other countries I believe our registration fee is at a reasonable price” Piseth said.

The Ministry of Commerce spokesperson could not be reached for comment yesterday.

2

Comments

Please, login or register to post a comment
Lightness's picture

You guys should do a survey on it. I'm sure people think its expensive, especially for startups. If they want every business to register, lowering the price is crucial.
You can do at lot of things with 1000 USD, it's already a few months of a staff salary.

vandavid's picture

It would be also worthwhile noting that in Singapore, registering a company takes barely 10 mms via internet and payment of even just less than USD 10/= via Credit Card and one can even set up a company with just USD 2/= as paid-up capital (2 shares of USD 1/= each for 2 shareholders) as minimum requirement. Something worth pondering upon for our local bureaucrats here that have never have any business experience their whole life. It may be something difficult for them to comprehend and appreciate.

Latest Video

‘Why hold a trial if you’re not going to summon the accused?’

Cambodia National Rescue Party supporters gathered outside the Appeal Court in Phnom Penh early this morning in support of imprisoned party leader Kem Sokha.

Behind the scenes of the princess's ballet

Post Weekend in collaboration with Le Petit Journal - Cambodge got an exclusive look behind the scenes of the Royal Ballet of Cambodia, as they travelled to Hong Kong for their debut in the ci