Compliance: Co-owned Building Development Business

According to Sub-Decree No. 050 dated 2 February 2023 on the Management of Real Estate Development Business, all co-owned building development business shall prior obtain license or permit from the Real Estate Business and Pawnshop Regulator (the “RPR”) or the Municipal/Provincial Department of Economics and Finance (DEF).

License or permit for the co-owned building development business has been classified into two types as follows:

• Type 1: granted to any developer who has completed construction, before sales and lease announcements; and
• Type 2: granted to any developer who starts construction while also announcing progressive sales or leases.

Any person who is intended to conduct co-owned building development business shall:

1. Maintain a minimum capital of 20% of construction cost for license Type 2;
2. Maintain a capital 100% of construction cost for license Type 1;
3. Provide business guarantee deposit;
4. Open a real estate development account at a commercial bank in Cambodia;
5. Prepare a project development business plan; and
6. Other conditions determined by the RPR.

Any person who is conducted co-owned building development business without any license from the RPR shall be fined from 150,000,000 Riels to 500,000,000 Riels and shall suspended such business immediately. Furthermore, any person who is conducted co-owned building development business without any permit from the DEF shall be fined from 25,000,000 Riels to 50,000,000 Riels and shall suspended such business immediately.