Digital Magazine Oct. - Dec., 2013
Cambodia Real Estate Market Crossing to O’smach via Chong Chom border
V I C T O R
I A
Explore the World Heritage Angkor Temples and immerse yourself in the Khmer empire. The Victoria Angkor Resort & Spa, inspired by 20th century colonial architecture and design, provides a sense of serenity with the nostalgic comfort and elegant renement of the French Art de Vivre. In total harmony ha ny with w its natural surroundings, roun ndings, the the resort is situated in the heartt of Siem hear m Reap, opposite o posite the th Royal Park. Locate Park Located d within cclose ose proximity prox to Angkor Temples Temples, the qua quaint old the Angko town market tow wn of SSiem iem Reap and 7 km. (4 from the InternaƟonal m miles) In ernaƟonal Airport. A Transport with Transp port yourself yoursel into the past p three limousines, our thre ee vintage Citroen lim ousines, for perso nalized airport transfers, tran nsfers, a trip tr personalized around the the town or a visit to the Temples. ples. VICTORIA ORIA ANGKOR RESORT & SPA Central al Park, P.O. Box B x 93145, 9314 Siem m Reap Town, Kingdom of Cambodia Tel: +85563 760 428 Fax: Fa +855 63 760 350 resa.angkor@victoriahotels.asia re resa.a gkor@victoriahotels.asia www.victoriahotels.asia hotels.asia
PUBLISHER’S NOTE Dear Readers, It’s hard to imagine anything that’s harder, more fun, and ultimately more satisfying, than completing the first 2.5 years of a new venture still standing. This issue of Cambodia Insight is our sixteen quarterly publication. It’s been, as the Navy promises, not a job but an adventure. Heartfelt thanks to our many readers. You’ve proven again and again that you’ll visit an online publication. We appreciate your attention, as well as your comments and suggestions. Every one of them was read, and many adopted. We’re grateful. Heartfelt thanks, too, to our advertisers. We don’t charge our many readers, and your generous support has made this possible. We hope that your business has benefited from the attention your ads garnered both locally and internationally. We’re grateful. Heartfelt thanks, as well, to our contributors. You’ve supplied us with interesting – indeed fascinating – insights into this Land of Wonder and its warm, welcoming people. The quality of your work shone brightly. We’re grateful. Heartfelt thanks, finally, to our staff. You’ve worked tirelessly and without complaint under the pressures of deadlines. 4
You’ve brought creativity to Cambodia Insight, along with a full measure of talent, hard work and good spirits. We’re grateful. As we look ahead to 2014, we’re encouraged that we’ve weathered the initial growing pains and can focus now even more on producing the leading publication about Cambodian life, business, culture, and especially responsible tourism. What will future issues bring? We’ll continue to spotlight the growing numbers of visitors and investors, the important role of investment and relations with our neighbors. And most of all we’ll continue to bring to our readers the wonders of the Land of Wonders, our adopted home. As always, your readership, your advertising support, and your comments will help us make this the leading publication of its kind on the internet. We’re truly grateful. Sincerely,
Charles R. Evans, Publisher H/P: 017.906.721 Charles@CorporateMarketingIntl.com
October - December, 2013
October - December, 2013
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CONTENTS Victoria Angkor Hotel 02 Crossing to O’smach via Chong Chom border 12 Start up Business in Cambodia
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The Changing Role of Women in Cambodian Society 20 Cambodia Real Estate Market
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Siem Reap Rental Siem Reap Properties
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Map 36
Ta Som Guesthouse Room Amenities • A/c rooms available • Fan Rooms Available • Cable/Satellite TV in room • Refrigerator in room • Hot/Cold Water
info@tasomguesthouse.com www.tasom-guesthouse.com
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#268 Nat. Route 6, (Airport Road,) Taphul Village, Siem Reap, Cambodia.
Hotel Facilities • Restaurant • Room Service • 24-hour room service • Laundry Services
• Tour/Travel Services • Travel/Tour Information • Free airport/ferry shuttle • Internet access in hotel
Tel: +(855)(0)63-964970, +(855)(0)12-830170, +(855)(0)12-772660 Fax: +(855)(0)63-967268
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A Quarterly Magazine on Business, Economy, Tourism, Culture and Society in English for Cambodia. Founded in Siem Reap City in January, 2010 by Evans Marketing
Charles R. Evans Don Finck Don Finck Kanyapat Evans Jeroen Mylhoff Savuth Sao Atchariya Priabnan Seriya Chan Bunleab Hong Mookda Jamsai Eric Larbouillat Peter Richards
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Publisher and Managing Director Editor - in - Chief Senior Creative Director Creative Director Art Director Manager, Graphic Design & Print Production Graphic & Web Design Sr. Webmaster & Programmer Jr. Webmaster & Programmer Production Assistant Sales Executive Thailand Bureau Chief
Evans Marketing Business Adviser Co. Ltd., Wat Damnak Village, 0453 Sala Kam Reuk Commune, Group 4, Siem Reap - Angkor, 17000, Kingdom of Cambodia Advertising & Subscriptions E-Mail: Advertising@CambodiaInsight.com E-Mail: Subscription@CambodiaInsight.com
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@ Copyright Evans Marketing Business Adviser Co., Ltd. All rights reserved. The name Cambodia Insight.com, in either English or Khmer languages, its associated logos or devices and the contents of this publication and website may not be reproduced in whole or in part, in print or electronically, broadcast, rewritten or redistributed without
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written permission of Evans Marketing Business Adviser Co., Ltd. Cambodia Insight.com is a wholly owned publication and
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website of Evans Marketing Business Adviser Co., Ltd. Licensed by the Ministry of Information. Although every care has been taken in the production of this magazine and website, no responsibility for errors or liability is assumed through the use of the information contained herein. Cambodia Insight.com is an independent publication dedicated to providing our readers with informative content presented in a positive light helping to boost business investment, tourism, cultural awareness and the image of the country.
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Siem Reap Riverside Hotel • Comfortable room with Fan & A/C • Cable TV with Satellite programs • Hot & Cold Shower, Clean Water • Full Internet Access, High speed in the room
• Roof top balcony for relaxing • Currency Exchange and Laundry • Helpful Service • Helpful Food Service • Sun bathing on the roof top
E-mail : booking@siemreapriverside.net sales@siemreapriverside.net Facebook: Siem Reap Riverside Website : www.siemreapriverside.net Address : #481, Sivatha Blvd, Svay Dangkom District, SiemReap Cambodia
Mobile: +855 (0) 12 517 000 Tel: +855 (0) 63 760 177 Fax: +855 (0) 63 760 277
Old Market area, Alongside of the river.
Crossing to O’smach via Chong Chom border
There are a/c minivans and non-a/c buses via Surin to Chong Chom border 70km, Prasat District to Chong Chom border 42km, located south of Surin or you can arrange a taxi around Surin bus station sanking to Kab Cherng district ( as Chong Chom border) Cambodian visas are issued on arrival at the Chong Chom - O’Smach checkpoint, from where you can get transport to Anlong Veng and then on to Siem Reap, which is 150km from the border crossing (start negotiations for a taxi transfer to Siem Reap at B350/car, but expect to pay slightly more).
Arriving from Cambodia,you can take bus bus or motorbike taxis travelers from the border checkpoint to the bus stop look at the sign to Prasat and Surin.
There have been reports of people on visa runs being asked for more money by officials on the Cambodian side, especially if they try to return to Thailand on the same day. There’s a casino on the Cambodian side, making this crossing popular with Thai gamblers.
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October - December, 2013
O’smach Cambodia border side O Smach in Cambodia is located 100 metres over the border checkpoint at Kap Choeng, Thailand. It is 70 Km south of Surin and 440 Km from Bangkok. From O Smach it is 150 Km to the world famous Angkor Wat or Siem Reap town. As at 2006 the road to Siem Reap was poor and the journey can take all day by truck. A road is being constructed to Siem Reap which will improve this journey markedly.If you are entering Thailand from Cambodia at this border crossing most nationalities will be granted a visa on arrival at no cost. Entering Cambodia from Thailand you are required to pay 1000 baht for a 30 day visa. The border point re opened in 2002 after being closed for a number of years to due fighting on the Cambodian side.
O Smach was the scene of heavy fighting in 1997 as the remnants of Sihanouk?s forces battled opposing forces. Peace came in 1998 and the military evicted local residents and sold off the land to the casino developers. The border at O’smach is definetly open for foreigners. Exited Cambodia there with one Thai registered bike and one Cambodian registration. Thai 30 day visas on entry and normal customs , but quick as no one goes thru with vehicles as they park on the Thai side a walk/songtow to the casinos just across the border. On the Thai side it is called Chong Chom The border post can be found by following Higway 214 south from Surin. From the Cambodian
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side the road from Anlong Veng to O’smach is very good, 100-120 kmh easy, demining going on along the road.The road up the escarpment is also good.
Takes a lot longer than the previous 5 minutes. Cambodian side, if you stop at the customs they want to see a Carnet, which of course you can’t get for a Thai rego bike.
Also a good road north from the SisophonSiem Riep road. An alternate border post for those sick of Aranyapratet.
After a while they just stamp the back of the Thai export paper if you agree to come back thru there on the way back, I never have because you normally can’t find anyone or I’m in a hurry. Interesting to note that there was no Cambodian customs at O’smach
Also noticed new tempory export procedures at Aran, now need to stamp passport out first, then back to customs, then to immigaration again for an airline crew(yes!) list , 2 copies of everything (B50 for copies-no receipt), then exit at immigration.
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Start up Business in Cambodia Phnom Penh is the capital of Cambodia, without interruption, since 1862. The functions of political and economic capital enable the city to have a GDP of approximately $1.4 billion
US dollars (2003) which is 28% of the national GDP. That is to approximately $1.140 per capita, three times more than the average of the country.
Very competitive investment incentives The promulgation of the new investment law means Cambodia now offers the best business incentive package in Southeast Asia; making the Kingdom’s outward-looking economy a very attractive place to invest. The following are the highlights of the new law :
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- 9% corporate/income tax - Tax holidays of up to 8 years - 5 year loss carried forward - Full import duty exemption - No withholding tax on dividends - Free repatriation of profits - No nationalization and price controls - No discrimination between foreign and local investors - Land leases of up to 70 years
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Market size and access The function of the capital and the integration of Cambodia in the ASEAN and WTO lead an important activity of business tourism. With more than 50 % of hotel rooms, 30 % of guest house rooms and 60 % of the travel agencies in the country, Phnom Penh has the
most important tourist activity of the country, ahead of Siem Reap but in a different capacity. As a Least-Developed Country (LDC), Cambodia has preferential access to some of the world’s richest markets for a number of products such as garments.
An open economy Cambodia has one of the most open economies in Asia. The index of Economic Freedom, compiled by the Heritage Foundation in the United States, ranked Cambodia 35th among 170 countries in 2003. Just ahead of Thailand (40th) and well ahead of several of its neighbors (Malaysia 72nd, Indonesia 99th, Vietnam 135th and Lao People’s Democratic Republic 153rd). Among the world’s Least-Developed Countries (LDC) covered by the index, Cambodia also ranks at the very top in market-friendliness.
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Abundant young & low cost labor force Its low-wage ($50 per month), trainable, and motivated work force is an asset in today’s increasingly competitive world economy.
Strategic location in greater Mekong sub region It is located between Bangkok and Ho Chi Minh City, at the center of the “Second East-West Corridor�.
Special promotions zone Industrial zones are to be developed in Phnom Penh, which will include export-processing zones and free-trade zones.
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October - December, 2013
Set up a new company in Cambodia The following are the requirements for forming a company in Cambodia: Deposit the required initial capital (minimum of CR2 Million or US$474.21) in any authorized bank. The bank will then issue a certificate of the deposit. Check the uniqueness of the company name at the Ministry of Commerce. This process costs about US$10 and takes five days to complete. Obtain a company registration form (CIB 01R) from the Cambodian Investment Board. This may also be downloaded from the CIB website – http://www.cambodiainvestment. gov.kh, and costs US$5-US$10. Companies are required to have company seals. These are usually made by the Ministry of Commerce but the company may choose to have it done elsewhere. The seal costs about US$15. An abstract of the company organization documents, such as the by-laws, memorandum and articles of association, must be published in a recognized public newspaper. This should contain the following: Name of the company Form of the company Summary of business objectives Office address Term of the company Total capital in cash Name and family name, occupation, nationality, address of a director and/or auditor The location where the company is to be registered Publication will cost around US$42 and will take seven days to be released. At least two copies of the approval of the newspaper and application documents must be secured for applying for registration.
Enrollment in the Commercial Register is required within one month of establishment and/or 30 days prior to the start of commercial operations. The following documents are required to be submitted to the Registrar at the Ministry of Commerce: 1) Copies of Registration Application Form 2) Memorandum and Articles of Association (2 copies) 3) Statement of Conformity (2 copies) 4) Application for publication in the authorized newspaper (2 copies) 5) Copies of identification cards or passports of directors and shareholders (2 copies) 6) Photos of directors and shareholders (2 copies) 7) Declaration of non-guilty of directors (2 copies) 8) Decision of share contribution (2 copies) The registration documents must then be stamped and approved by the Phnom Penh Tax Department. This can be accomplished in one day. The fee is US$26. Tax registration is required at the Real Regime Tax Office. The Ministry of Labor must be notified when starting operation and hiring or dismissing employees. More details Link: http://sihanoukvilla.com/ information
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The Changing Role of Women in Cambodian Society A couple of years ago, it was usual in Cambodia to say: “All what women do is moving around the stoves.” Today, things are changing. Only a few years ago it was still customary to hear the expression in Cambodia that “women belong near the kitchen stove”. Nowadays, through intercultural dialogue and globalization, especially among the younger generation, things have changed. “Women belong near the kitchen stove” is an old Cambodian proverb. Nevertheless, over time, this mode of thinking has changed in modern Cambodian society. For centuries, the role of women was singularly defined.
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Only in the past 10 years has there been a careful and slow change. Tradition says that women are responsible for looking after the house, for cooking and for bringing up the children. Apart from these, no other task was permitted. Sounds like a typical male chauvinistic society, right? However, it is interesting to note that for centuries that was the way that society operated. For instance, in the beginning schools were available only for boys, not girls.
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In the past, schools were not available for girls in Cambodia. The reason? Only men had a say and thought that schooling was not important for girls who would anyhow get married and then become housewife. To learn something else would be just a waste of time, they thought. No girl could therefore study something, and even if she did occasionally, she was not able to apply her knowledge because her job after marriage was confined to the kitchen stove. Others thought that, if both boys and girls were to go to school together, the boys would be distracted from learning by the beauty of the girls and would then think about love and
marriage rather than knowledge and this would not be good for society. Luckily, this time is now behind us. In modern, technological society and its new thinking, both boys and girls go to school. Men and women have nowadays the same rights and freedoms, and also their labour has the same value. Unfortunately, this modern concept is not yet accepted in all parts of the country, particularly in rural areas where old traditions still prevail. Here you find that “women still belong near the kitchen stove�.
Old traditions still play an important role in Cambodia, especially in the realm of religion. For instance, women are not allowed to touch many sacred items. They believe that if a woman touches certain items, something bad or unusual will happen. It’s one reason why girls are often compared to a ball of wool, while boys are compared to a diamond. The background to this comparison points to the fact that a diamond is much easier
to clean than a ball of wool when they both fall into the dirt. It means that, if a woman does not live up to expectations it is normal, just like the dirt on a ball of wool, whereas a man, like a diamond, can be cleaned and will look like new again, in other words, everything is forgotten.
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A few other Interesting Observations: • 60% of all people over the age of 25 are women • 30% of all women look after a household without a man (it happens often that a man will simply leave his wife and children behind and not return) • 60% of all workers in agriculture are women • 67% of all factory workers are women (often also girls from orphanages to earn money in government factories) • On average, a woman has 3 children during her lifetime and works more than 12 hours a day • 19% of all students are women (the role of the housewife is still prevalent in the culture).
Getting Married in Cambodia The U.S. Embassy would like to clarify the process U.S. citizens should follow when they intend to get married in Cambodia. You need to make an appointment for this service. To make an appointment, U.S. citizens should request marriage applications from the Legal and Consular Department of the Ministry of Foreign Affairs and International Cooperation (MFA) of the Kingdom of Cambodia, located at 3 Samdech Hun Sen Street, Sangkat Tonle Basac, Khan Chamkamorn, Phnom Penh. The application form lists seven supporting documents that must be provided by foreigners and attached to the application. The application also says that foreigners must legalize five of these documents at their respective embassies. Of those documents required, consular officers at the U.S. Embassy can only legally certify
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copies of a U.S. citizen’s passport and notarize affidavits of single status; the current Cambodian sub - decree governing marriages also only requires certification of those two documents. None of the other documents required by the MFA can be certified by the U.S. Embassy. The MFA has assured the U.S. Embassy that marriage applications in which only the passport copies and affidavits of single status have been certified, in accordance with both U.S. and Cambodian law, will be accepted by them, despite any written notices or instructions that indicate otherwise. According to new marriage requirements issued on by the Government of Cambodia on March 7, 2011, male U.S. citizens wishing to marry Cambodian women must:
Be under 50 years of age, and Have a monthly income of at least US $2,500
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The MFA also has requested that embassies attach a cover letter to those documents certified by embassies on behalf of their citizens. The U.S. Embassy will provide this cover letter when they certify the copies of U.S. passports and affidavits of single status for U.S. citizens. Please note that the U.S. Embassy also has blank affidavits of single status for the convenience of U.S. citizens seeking to get married in Cambodia. While it is not required that you use the affidavit of single status provided by the U.S. Embassy, using an affidavit from another source may cause difficulty with your application, since officials at the MFA may question the source and validity of affidavits that have a different appearance from those they usually see. Upon obtaining and certifying the necessary documents, U.S. citizens must fill out the application form, and submit it to the MFA. Although the MFA may begin charging a fee later, currently, there are no fees charged by anyone at the MFA for this process – the application is free. The MFA reviews and gives advice on the application and accompanying documentations of the foreign applicant, and if all documents are in order, the application is forwarded to the MOI.
The MOI will review and register the application of the foreign applicant that was forwarded from MFA and inform appropriate officials in the province, city, district, khan and commune where the Cambodian applicant is domiciled about the marriage application, before providing feedback and returning the application to the foreign applicant. The foreign applicant must then submit the application to the civil registrar at the commune/sangkat where the Cambodian applicant is permanently domiciled. The Cambodian applicant will also need to submit the marriage application to the civil registrar at the commune/sangkat where they are domiciled, together with the marriage application of the foreign applicant. The civil registrar at commune/sangkat has the duty to review and decide on the marriage applications of foreigners and Cambodians based on the laws and related regulations of the Kingdom of Cambodia. The U.S. Embassy plays no role in determining whether a marriage application is approved or refused, and cannot represent U.S. citizens in this process, or in any way influence the decision of Cambodian authorities on marriage applications.
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Cambodia Real Estate Market Land prices in Cambodia continued to recover in the last half of 2012, especially in urban areas, following a collapse of the market in 2008, real estate investors say. Prices continue to rise the most in Phnom Penh, with rentals leading the way and low interest rates offered for home buyers, but investments in tourism outside the city have also helped raise land values. Keuk Narin, vice president of Asia Real Estate Cambodia, told VOA Khmer that commercial land prices along Phnom Penh’s main boulevards, Monivong and Norodom, have gone from $3,000 to $4,000 per square meter and in some cases as high as $5,000 per square meter.
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by allowing the banks to offer loans at low interest rates. Noun Rithy, managing director for the Bonna Realty Group, said construction is on the rise in commercial buildings, factories, hotels and houses, raising land prices. That includes sites in the provinces of Battambang, Preah Sihanouk and Siem Reap, where tourism investment is high. “The movement of buying and selling real estate in those provinces has increased,” he said. “We could see more investors from Japan investing money to build hotels or condos.”
In the last half of 2012, the number of business transactions in real estate increased, and prices rose about 13 percent for residential areas and 16 percent for commercial areas, he said.
Construction has emerged in recent years as a major economic driver for Cambodia, adding to the garment, tourism and agriculture sectors. The Ministry of Land Management approved some 1,600 construction projects in 2012, worth $2 billion, an increase of nearly 70 percent over the year before.
Apartments are currently the top-selling real estate, and condominiums are highly sought after for rent by South Korean clientele, he said. The stable growth of the sector has helped improve the housing market, too, he said,
Beng Hong Socheat Khemro, a spokesman for the ministry, said the increase was due to political stability, “a good legal framework,” the economic recovery and the growth of the tourism sector.
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How difficult is the property purchase process in Cambodia? Foreigners cannot own land in Cambodia, under Article 44 of the Constitution. Nevertheless foreigners can establish control over land in four ways: o o o o
Land can be bought through a local company. Land can be leased. Acquiring Cambodian citizenship brings the right to buy land, a route actively encouraged by the government. Land is sometimes bought through a Cambodian nominee, but this has been ruled to be against Constitution, and is unsafe.
The Four Ways Of Establishing Control Over Land 1. Buying land through a locally - incorporated company Foreigners often hold land in Cambodia through a company. This structure offers the least risk for the foreign investor, who can be an individual, or a legal person. More than one piece of land can be held. But setting up a landholding company is expensive, and there is a high maintenance cost, and taxes on rental income are quite high (see above).
The applicable legislation is the Law on the Investment of the Kingdom of Cambodia (Chapter VI, Article 16), which states that ownership of land can be vested in “legal entities in which more than 51% of the equity capital are directly owned by natural persons or legal entities holding Cambodian citizenship”. Moreover, “use of land shall be permitted to investors, including long-term leases of up to a period of 70 years, renewable upon request”.
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There are 3 layers of security in the land-holding company structure: o
Different classes of shares. The land holding company must be 51% Cambodian
owned, but is usually structured with 2 classes of shares having different rights, one class held by foreign investor, one by local investors. For example the Cambodian entities or persons might have lesser rights to transfer shares and to nominate directors, and company decisions might require a 2/3rds majority.
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Minority control document. A series of private agreements are usually drawn up by which the Cambodian shareholders grant the foreigner special rights – e.g. a permanent majority on the board, or different powers of attorney, or blank shareholder transfer forms.
o Land Security. The landholding company often registers a mortgage on the land, which means that the land cannot be transferred without the consent of the foreigner.
The result is not 100% bullet proof - the main risk is always the Cambodian partner. Because the Cambodian courts are corrupt and decisions are normally bought, the buyer should also methodically undertake due diligence on the local partner to reduce the likelihood of an issue arising in future which will reach the courts.
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“In 10 years, we have only had 2 problems,” says Martin DeSautels, managing director of DFDL Mekong Phnom Penh. “But if you have a problem and you have to go to court, sorting things out can cost a lot.”
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The following are the requirements for forming a company: o Deposit the required initial capital (minimum of CR2 Million or US$474.21) in any authorized bank. The bank will then issue a certificate of the deposit. o Check the uniqueness of the company name at the Ministry of Commerce. This process costs about US$10 and takes five days to complete. o Obtain a company registration form (CIB 01R) from the Cambodian Investment Board. This may also be downloaded from the CIB website – http://www.cambodiainvestment.gov.kh, and costs US$5-US$10. o Companies are required to have company seals. These are usually made by the Ministry of Commerce but the company may choose to have it done elsewhere. The seal costs about US$15. o An abstract of the company organization documents, such as the by-laws, memorandum and articles of association, must be published in a recognized public newspaper. This should contain the following: o o o o o o o o
Name of the company Form of the company Summary of business objectives Office address Term of the company Total capital in cash Name and family name, occupation, nationality, address of a director and/or auditor The location where the company is to be registered
Publication will cost around US$42 and will take seven days to be released. At least two copies of the approval of the newspaper and application documents must be secured for applying for registration. o o o o o o o o o o o o
Enrollment in the Commercial Register is required within one month of establishment and/ or 30 days prior to the start of commercial operations. The following documents are required to be submitted to the Registrar at the Ministry of Commerce: Copies of Registration Application Form Memorandum and Articles of Association (2 copies) Statement of Conformity (2 copies Application for publication in the authorized newspaper (2 copies) Copies of identification cards or passports of directors and shareholders (2 copies) Photos of directors and shareholders (2 copies) Declaration of non-guilty of directors (2 copies) Decision of share contribution (2 copies) The registration documents must then be stamped and approved by the Phnom Penh Tax Department. This can be accomplished in one day. The fee is US$26. Tax registration is required at the Real Regime Tax Office. The Ministry of Labor must be notified when starting operation and hiring or dismissing employees.
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2. Taking control of land through a lease. Long-term leases are another common way for foreigners to control land in Cambodia. For instance, the super-luxurious Phnom Penh Raffles Le Royal Hotel is held on a long-term lease. A long term lease gives the lessor all necessary rights to develop the land – e.g., he can get construction permission in his own name. This is a very simple structure, but is less secure than the company structure.
There is no maximum term for which land can be leased from a private owner – the period is indefinite in the Land Law. Leases commonly last 50 years, 70 years, or 99 years. Leases longer than 15 years must be registered at the Land Office. On state land, there is a 40 years maximum, with the possibility of extension. A background check on the owner is essential, as in the case of the landholding company structure. Leasing from a greedy, politically well-connected owner can be disastrous.
Safeguards typically built into the lease contract involve: o Dispute resolution is often placed by contract outside Cambodia, e.g. in Singapore. This is less effective than widely believed, as many land disputes do not involve disputes over the contract itself, but over other matters. In addition, Cambodian courts often refuse to recognize foreign arbitration, or revisit issues already decided in the Court of Arbitration. o o
A clause is often inserted requiring the owner to get the lessee’s permission to sell. Or preventing the owner from selling, unless the new owner recognizes the lease. In addition, a ‘block sale notice’ can be registered with the Land Office, instructing the office not to sell the land without the lease owners’ permission.
There are currently two problems with the lease structure. Problem 1 – ownership of the buildings at expiry of lease It is not settled who owns the buildings after the lease has finished. The 2nd and 3rd floors of buildings clearly belong to the lessee, who can register title. Because the owner of the 1st floor also owns the land, according to the Land Law, once the lease is finished the owner of the building is the landowner. But according to the Law on Investment (covering companies registering for tax incentives) the buildings are owned by the lessor.
The issue could be settled by changes in the revised Land Law and elsewhere: “The Cambodian authorities are reportedly thinking of setting up a separate registry to registed the ownership of buildings. This would be a massive step forward,” says Matthew Rendall of Sciaroni & Associates. Such a register would give effect to the Law on Investment provisions.
Problem 2 – leases not recordable at Land Registry Hitherto leases been recordable on title deeds at the Land Registry. “I have heard that now that they are registering,” says Rendall. “If this is true, it is another significant development,
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which would greatly improve the leaseholder’s security.”
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3. Buying land by acquiring Cambodian citizenship. Taking out Cambodian citizenship is one way of getting the right to buy land, which the government is encouraging.
dia. It is important to ensure that the Ministry of the Interior, the Council of Ministers, and the President, all agree to the grant of Citizenship.
Citizenship applications will be considered if a significant investment is being make in Cambo4. Buying land through a nominee structure Often used by investors because it is simple and cheap, the nominee structure ignore the Constitutional prohibition on direct ownership of property by foreigners, and is illegal and strongly discouraged by all land lawyers. The following is how the structure works. The
investor signs a trust agreement with the holder of the land: “I hold this land for you.” The land is then mortgaged, and leased to the foreigner. The consequence of adopting this structure could be expropriation by the state, or forced sale of the land.
Land titles Between 1975 and 1979, there was no private land ownership in Cambodia. Almost all judges were killed during this period, and all records destroyed. In 1989 a Land Law was issued. In 2001 a new Land Law was issued. A further revision is in preparation.
Although ‘soft title’ is somewhat weaker, it applies to almost all land in Cambodia. “My experience is that the local level registration is just as secure as the national level registration,” says Sciaroni’s Matthew Rendall. “There is not that much risk, and you do avoid the registration cost.”
There are two kinds of land title, in terms of documentation:
However, leases and mortgages cannot be registered on a possessory right title.
‘Soft title’(possessory right), which is based on the right of possession and is issued by the local village chief officials. ‘Hard title’, which is registered with the Land Office, and trumps claims of ownership based on possessory right.
Possessory rights over private land can be converted into hard title, but this involves paying a 4% transfer fee and is time-consuming. Most landlords prefer to wait for the conversion to be done by World Bank titling scheme, which will not involve the 4% transfer fee.
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Boundary issues One of the most common land ownership problems is boundary disputes. It is important to register boundaries, otherwise the foreign owner is likely to become involved in un-winnable
legal disputes. Similarly, the foreign owner should guard against squatters, for instance by erecting a fence and employing guards.
What a title search can reveal It is important to conduct a title search. It is important to know who it is, so that the buyer does not pay the wrong person. The title search will also reveal registered mortgages and other encumbrances. Bear in mind that there can be other impediments to transfer which are not visible in the
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title search, e.g., a claim by a senior politician. Often the buyer will not be given the actual title for the search, because this is the sellers’ only evidence of ownership. So the buyer will get a copy of the title. It is important to make sure it is a recent copy.
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Transfer of title The Land Office will not complete the transfer till they see the receipt certifying payment of the transfer tax and land office fees. Though the registration fee is officially 4%, this amount is in practice never levied. Each cadastral office calculates a certain amount in obscure ways, usually amounting to around 1.5%-2%. Normally, the cadastral officers will write a transaction price on the contract which is different to the real price. “In only two case have I ever seen the 4% paid,” says a local realtor. “One was a World Bank transaction; the other was a German who wanted to report the real price to his company.” In addition to the 4% (in practice 1.5% - 2%): o There is US$800-US$1000 ‘service fee’, paid to the cadastral office, which covers all other ‘service fees’. o A tax is payable according to the absolute size of the land and building, according to type – commercial, residential, or rural. o On sale, there is an unused land tax, calculated by the cadastral officer.
Payment for the land usually takes 3 stages: Deposit 10% Second payment of 10% Balance – 80%. Typically the balance is not paid until the title is converted into ‘hard title’. The whole process of registering property can take around 56 days to complete. Few Cambodians would use a notary or lawyer. “You pay double,” says the local real estate agent. “If you go through a lawyer, he just does that the cadastral officer does. So choose a good cadastral officer, and use a lawyer to do due diligence, but pay him for just that job.” However the foreigner will need to set up a landholding company or create a watertight lease structure, and the complexities of this process make it more or less essential to employ a lawyer. Link: http://www.globalpropertyguide.com/Asia/ Cambodia/Buying-Guide
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Siem Reap Rental Properties
Over the last five years, Evans Marketing, dba: Cambodia Business Investment.com, Siem Reap Rental. ASIA and Corporate Marketing Intl. have changed in many ways. Siem Reap has become a thriving city attracting expats from a range of different countries. Here at Siem Reap Rental, we strive to keep abreast of these changes and adapt our services to meet the current market. We understand the 32
requirements of our customers and offer a full after sales service. We have, Chinese, English, French, Khmer, Korean, Chinese and Russian associates to meet the needs of the current community here in Siem Reap and our staff are always prepared to go the extra mile to ensure that our customers are 100% satisfied with our service.
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There are many different residential locations here in Siem Reap, and preference is no more than a personal choice. If you’re looking to enjoy the livelier side of the city then you may want to consider a house or apartment in the central areas of Siem Reap town. Those families or individuals who are looking for a quieter abode, may prefer to look outside the town towards the old French Quarter of villages of Wat Bo, Sala Kam Reuk or Wat Damnak and many others. We have residential and commercial properties available in every area of Siem Reap province and are confident that we can help our customers to find the home or business of their dreams. Why choose us? Property dealings in foreign jurisdictions can be fraught with dangers and pitfalls. So, whether you want to buy, sell, rent or invest in property
in Cambodia you will need the assistance and advice of professionals. Our professional team of expatriates, Khmers and Thais, with over thirty five years property experience (8 of which has been gained in Thailand & 6 in Cambodia), has developed a reputation for honesty and integrity, and maintains the highest standard of professional ethics in all our client services.
Contact
Chinda Sovan-Sales Manager, Kanyapat Evans- Social Media/ P.R. Manager or Charles Evans, Director to find your perfect property or business! E-Mail: info@SiemReapRental.ASIA www.siemreaprental.asia/ www.CambodiaInsight.com or www.CambodiaBusinessInvestment or www.CorporateMarketingIntl.com
October - December, 2013
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House: For Rent Location:Siem Reap Bed:4 | Bath: 5 List ID:HFS1002120365 Rent: 650 $(USD) / Sale: $(USD)
House: For Rent Location:Siem Reap Bed:2 | Bath: 2 List ID: HFS0927120362 Rent: 350 $(USD) / Sale: $(USD)
House: For Rent Location:Siem Reap Bed:6 | Bath: 4 List ID:HFS0926120361 Rent: 800 $(USD) / Sale: $(USD)
House: For Rent Location:Siem Reap Bed:2 | Bath: 2 List ID:HFS0926120360 Rent: 550 $(USD) / Sale: $(USD)
House: For Rent Location:Siem Reap Bed:4 | Bath: 6 List ID:HFS0920120353 Rent: 1000$ $(USD) / Sale: $(USD)
House: For Rent Location:Siem Reap Bed:3 | Bath: 4 List ID:HFS0919120351 Rent: 400 $(USD) / Sale: $(USD) October - December, 2013
Let’s Start Our Travel to
Cambodia
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Camb dia Insight
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Siem Reap Map
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Angkor Palace Resort
Taphul Village Area
Old French Shinta Mani Quarter
Sivatha Blvd
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Hotel De La Paix Vong Tep dech
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Siem Reap City Map (Town Center)
CorporateMarketing Integrated Marketing Strategies
Restaurant & Bar
Shopping / Boutique
Tour/Travel Agent
Spa / Massage
Jayavarman VII Hospital Borei Speak Neak Inn (Performances by Beatocello) H
Hotel with restaurant
Bank / ATM
Sofitel Royal Angkor (Couleurs d’Asie Located Inside)
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Tara Angkor Asia Craft Centre(ACC) Online D’mouj
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200m
250m
Wat Kesararam
Bou Savy Guesthouse
Airport Road
Ta Som Guesthouse
Prince d’Angkor
ACLEDA
Kazna Hotel
Street 05
Cambodian Red Cross/ Angkor Panaorama
Helistar
European New Apsara Guesthouse Market Peace of MotherHome Guest House Angkor Tours Home Sweet Home GH Two Dragons
Street 21
La Résidence of Angkor
Samdach Tep
Wat Bo Area
Paris Saigon Vong Street
Viroth’s Restaurant
Angkor Hospital Angkor Rivieara Hotel/Gingkgo Spa ANZ Royal Bank Charming Cambodia for Children Adidas Tours Common Grounds UCB Selantra Pich Reamker Asian Trails Central Boutique Frangipani Spa Street 22 Good Nah Hotel de la Paix Angkor ng Street Vo Tep Terre Cambodge Le Café The Villa Siem Reap Senhoa Nail Spa Ivy Samdach City River Hotel Phsar Guesthouse The Emerald Lotus Kandal Street 23 Boutique Hotel (Center Viroth’s Hotel MPA Naga Guesthouse Market) Bopha Angkor Soria Moria it Stands King AngkorVilla SBC Phnom Penh Fresh Fru Street 24 Sorya Transport Hong Kong Restaurant Canadia PROVINCIAL Shadow of Angkor II Happy 2 thHerb Pizza HOSPITAL Tany Family Lodge Wat Preah nou Street 25 Intra Co. Stre Prom Rath et Happy Special Pizza Relax Massage Khmer Butterflies Gardent Vattanac Bank Home Cocktail Happy Angkor Pizza Street 26 Blue 7 Massage Dead Fish Tower Bodia Spa Tell Restaurant U-Care Maharajah Singing Tree 7 Girls Khmer Massage Be VIP Khmer Massage Tourex Asia Café Little Traditional Brickhouse Bar Happy Angkor Pizza Pumpkin Banana Leaf India Kokoon/Blue Movie Mall Angkor Candles Angkor Trade Center Temple Club/Balcony Traditonal Curry CAB Bank Angkor Street 27 Island Massage Viva Khmer (Pizza Co., Swensens) Rajana Cambodian Walla 2 Night ViVa Khmer Family Champey Senteurs Shadow of Angkor BBG Market d’Angkor Le Grand Red Piano Rehab Craft Chamkar Amok Mekong Guilts Les Orientalistes Body Tune Massage McDermott Gallery Neak Garden Village Sao Mao Aha Krorhorm Kampuccino Guesthouse Molly Malone’s Cherry Blossom Boutique Baca Villa Sala Bai
Zone One Salina Hotel
Wat Bo
Sam Veasna Center
Apsara Theater Angkor Village
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Leu Phsar Thom Thmey
Wat Bo Road
Curry Walla 1
Achar Sva Street
Nest Mekong Bank
Mekong Angkor Palace
Angie’s Villa
Home Cocktail Angkor World Travel Claremont Angkor and Street 20 East India Curry
Siem Reap River
hello point
Oum Chhay Street
Tany Khmer Family Kitchen
Pokambor AV
Royal Day Camintel Inn Angkor POST Casa Angkor Resort OFFICE Oum Khun Street L’Escale des Shinta Mani Arts et des Sens
Angkor Market Master Suki Soup
Green Garden Home
Angkor Wat in Miniature (Artist Dy Proeung) Borann I’Auberge des Temples
Not to Scale Mom’s Guesthouse
MC Dermott Gallery Red Gallery Visaya Spa FCC Angkor
Street 03
Not to Scale
Yaklom Lodge & Sawasdee Food Garden
Park and Promenade
SBC
Old French Quarter
Obriot Gallery
14 Street
Taphul Village Area
Sivatha Blvd
Taphul Road
Lucky Mall (Lucky Supermarket lucky Department, Store, Monument Toys...)
Khmer Inn Angkor
Street 02
Golden Mango Inn (150 meters) Dara Reang Sey Hotel (350 meters) Bus Station (800 meters) Roluos Group (12km) Phum Stoeng Trocheat (13km) Phnom Penh (314km) Reaksmey Star Travel/CTV Phsar Samaki Freedom Hotel
La Noria Hotel and Restaurant
Royal Residence
Ya-Tep Shrine
Mysteres d’Angkor
Cathelic Church Golden Orange Angkor Discover Inn
Royal Independence Preah Ang Chek Gardens Preah Ang Chorm Shrine
Victoria Angkor Angkor Shopping Center National Route No 6 Panida CAB Bank
Caltex
Jasmine Lodge
Wat Po Lanka
Angkoriana Hotel Tonle Chaktomuk and Chaopraya Coffee Tourism Department
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La Villa Mona d’Angkor Shining Angkor Boutique
Wat Preah An Kau Sai
Dragon Royal 7 Makara ECU (Office)
Royal Yoga Madamsachiko: Angkor Cookies & Café Puka Puka
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Hidden Cambodia Adventure (workshop)
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Angkor Village Resort
Hidden Cambodia Adventure Tours(office)
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Old Market Bridge
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Sawasdee Angkor Inn
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Mandalay Inn Divine Lotus Inn Angkor Friendship Inn Angkor Spirit Palace
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Wat Damnak
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Peace of Angkor Palm Garden Lodge
Siem Reap Hospital
Alliance Café
Passaggio Boutique Hotel
DAMNAK AREA
Golden Banana IKTT Five Star Villa Siem Reap Reverside (50 meters) Sayon’s House (300 meters)
Wats Up Golden Banana Boutique Resort
Green Village Palace
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Phokeethra Country Club (5km Past Baray) National Silk Center (16km from town) Dragon Rayal City - Puok Dragon Royal City - Kralanh
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Khiri Travel The Kool Hotel
Prasat Ta Ney
Prasat Dounso
Banteay Kdei 66 B
Prasat Ta Prum
Angkor Oasis Vietnam Airlines
Preah Enteak Kosei
Prasat Prey Khan Kraol Romeas Angkor Thom Bayon
Angkor Wat
Nokor Krau
Prasat Banteay Thum
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Prasat Takaeo Thommanon Chao Say Tepda
Phimeanakas
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Ta Prohm Ke Prasat Baksei Cham Krong Baphuon
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Phnom Bakheng
Prasat Reaob Kanda
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Prasat Prey
Cambodia Angkor Air
Prasat Patri
Prasat Kraom Prasat Ta Noreay Siem Reap Airport Western Mebon
Prasat Prel Wat Chedei
Prasat Kaoh Ho Western Baray Pralay
Abacus ACLEDA
Prasat Kouk Pou
Prasat Ak Yum
Prasat Phnom Rung
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Angkor TK
To Po ip
Healthy Hand Massage The One Massage Bangkok Airways Angkor Home
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Te m Ar p ea le
Dragon Royal Hotel
Earthwalkers
Prasat Toep
Kroi koPrasat Prey Neakpean
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Kuk Talech
Prasat Banteay Prei
The Sothea
Angkor Palace Resort & Spa
67 Prasat Leak Neang
Prasat Kravan
Royal Angkor Resort Empress Angkor Angkor Miracle Resort & Spa
Prasat Kamnap
Prasat Prey Roup Prasat Ta Som Eastern Mebon Prasat Bat Chum
Pacific Hotel Royal Angkor Inn Hospital
Cambodian Cultural Village
Prasat Ou Koek
Prasat Touch Prei Prasat Kule n
To Phno
To Ph
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Prasat Banteay Srey
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Phnom Bok
Eastern Baray (dried up)
Air
Airport Road
National Route #6 between town center and the Siem Reap International Airport
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Multi - Cultural Integrated Solutions PROMOTIONS, EVENTS PUBLIC RELATIONS
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F: H/P //P : +855 (0) 17.906.721 Charles@CorporateMarketingIntl.com Charles@C l @ CorporateMarketingIntl.com C Co Corp
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WHEN BUYING OR SELLING A BUSINESS IN CAMBODIA H/P : +855 (0) 17.906.721 Charles@CorporateMarketingIntl.com www. CambodiaBusinessInvestment.com
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October - December, 2013