1. Preamble

Effective May 5, 2025, any Cambodian or foreign national intending to establish or operate a new company, or who has not yet submitted a declaration of the opening and closing of enterprises, must notify the Ministry of Labour and Vocational Training.

The owner or director of the enterprise must submit this declaration prior to the permanent opening or commencement of operations.

However, for enterprises with fewer than eight permanent employees and that do not use machinery, the notification of opening may be submitted within 30 days after the permanent opening of enterprises.

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2. Laws and Regulations 

This article is based on the current laws and regulations of the Kingdom of Cambodia, including:

• The Labour Law, Royal Kram No. ជស/រកម/0397/01, dated March 13, 1997, as amended in 2007, 2018, and 2021.
• Inter-Ministerial Prakas No. 498, dated July 31, 2023, regarding the penalties Imposed on Individuals Violating Provisions of the Labour Law.
• Prakas No. 110/25, dated May 5, 2025, regarding the declaration of Opening and Closing Enterprises.

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3. Responsible Person 

The owner or director of the enterprise operating in industry, mining, commerce, handicraft, services, agriculture, or water or land transport, whether for public or private benefit, including free professions under any association or group, must apply for a declaration of enterprise’s opening with the Ministry of Labour and Vocational Training prior to its permanent opening.

Conversely, within 30 days, the owner or director of the enterprise must also notify the Ministry of Labour and Vocational Training after the date of permanent cessation of business activities.

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4. Application Procedures 

Applications for registration of the declaration on the opening and closing of the enterprise must be made through two methods:

• New Enterprises 

Newly opened enterprises must apply for registration of the declaration of enterprises' opening through the business registration platform (https://registrationservices.gov.kh) by entering information and attaching documents. Within 30 days of receiving the declaration, the owner or director of the enterprises must create an account in the Labour Centralized Management System (LACMS) via https://lacms.mlvt.gov.kh to fulfill various labour-related obligations.

• Existing Enterprises 

For enterprises currently in operation or not yet registered in the LACMS system for their declaration of enterprises’ opening, an account must be created via https://lacms.mlvt.gov.kh.

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5. Information Updates 

All owners or directors of enterprises are obligated to notify the Ministry of Labour and Vocational Training within 30 days of any changes to the following information:

• Name of the enterprise 
• Owner, representative, or director of the enterprise 
• Transfer or change of shareholders, details of governors, or amendments to the articles of association 
• Address 
• Type or format of the enterprise 
• Business objectives or activities 
• Tax identification number or updates to new patent tax card 
• Business suspension 
• Permanent cessation of business 
• Head of administration, human resources manager, or labour compliance manager 
• Banking information 
• Contact details including phone number, email address, or system user account 
• Other general information about the enterprise, such as number of employees, main products, brand names, order details, import of raw materials, and export activities.

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6. Penalties and Conclusion

Enterprises’ owners or directors are obligated under the Labour Law to declare the the opening or closing of their enterprises to the Ministry of Labour and Vocational Training (Articles 17 and 18 of the Labour Law).

In case of violation, the enterprises may face a fine of 5,040,000 Riels (approx. USD 1,260) from the Ministry of Labour and Vocational Training, not include other labour non-compliance issues. Please note that the director or person in charge of the enterprises who is considered as “employer” under the law, will also be jointly liable with the enterprises.

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Disclaimer 

• The information provided in this article is for general informational purposes only and does not constitute legal advice.
• Efforts have been made to provide accurate and up-to-date information, its accuracy cannot be entirely guaranteed.
• Readers should not act or refrain from acting based on the information presented in this article without prior professional legal consultation.
• Always seek advice from a qualified legal professional appropriate to your specific situation.