Six ministries and state-run institutions have been integrated into a business registration system on an information technology platform that was launched on Monday by government representatives.
The platform intends to make the process of registering and opening a business in Cambodia easier and more efficient.
The six ministries and state institutions listed in the system are the ministries of Interior; Economy and Finance; Commerce; and Labour and Vocational Training, as well as the General Department of Taxation and the Council for the Development of Cambodia.
Speaking at the launch, finance minister Aun Pornmoniroth said the new system will improve the Kingdom’s investment climate and enhance overall competitiveness.
He said: “I am truly thrilled. I hold this new registration system in the highest esteem, which will allow businessmen to register their businesses at the Ministry of Commerce, register their taxes at the General Department of Taxation and announce the opening of an enterprise at the Ministry of Labour and Vocational Training at the same time. The whole process can be done in only eight days.”
The platform will help turn Cambodia into a modern and dynamic investment destination, especially in the context of changing global production chains and relocating of factories, he said.
“I encourage businesspeople to use the new business registration system and its mechanisms to the fullest extent possible.”
Phan Phalla, the secretary of state of the finance ministry and the chairman of the inter-ministerial registration system working group, said the system is the first of its kind in Cambodia.
The data exchange platform will allow data to be quickly transferred between ministries for review and approval, he said.
“All the processes will be done completely online. There are no tangible documents.
“All fees will be paid online and certificates issued by the ministries and institutions will also be provided in a digital format and can be self-published for official use,” said Phalla.
He said the system reflects the government’s commitment to reform by reducing complex procedures and saving time and costs. With the new system, businesses are only required to register once.
“The cost of registration under the new mechanism has been reduced by about 40 per cent. The patent tax for the year of registration has been reduced by 50 per cent and the registration taxes for new registration documents are now exempt.
“Businesspeople are no longer required to take a photo and scan their fingerprint immediately after listing,” he said.
Cambodia Chamber of Commerce vice-president Lim Heng said the new system would also help reduce bureaucracy and corruption.
He said: “We, in the private sector, welcome and strongly support the registration system and expect that it will attract more foreign investors to Cambodia.”
But, while the business registration system provides advantages, the government should focus on strengthening human resources so that the system is fully understood and information about it can be easily accessed, said Federation of Association for Small and Medium Enterprises of Cambodia president Te Taingpor.
He told The Post: “We welcome the launch of the online registration system, but we would like the ministry to launch a human resources training course to make sure people have a comprehensive understanding of it.”