Legal and Tax Updates

Issue: No. 024P/03 June 2021

Following the Law on E-commerce, Sub-decree No 134 dated 27 August 2020 on “the Classification of types, forms, and procedures for granting E-commerce license or permit to intermediary and e-commerce service providers as well as the exemptions of licensing requirements”, and Prakas 290 dated 9 October 2020 on “the Granting of Permit or License for E-commerce”, the Ministry of Commerce (“MOC”) has a reminded once again on this 26 May 2021 on the applying for Permit or License for E-Commerce. Failure to comply with such legal requirement, the violating person is subject to banning from operating and to monetary penalty.

Under the Prakas 290, the Permit and License applies for the following case:

• E-Commerce Permit (with 2-year validity) is applicable for a natural person and sole proprietor; and
• E-Commerce License (with 3-year validity) is applicable for a legal entity and branch of foreign company.

Please also be reminded that under a joint Prakas No. 316 dated 12 May 2021 of MOC and the Ministry of Economic an Finance, the unauthorized e-commerce transactions/business is subject to a fine of 10,000,000 KHR or approximately USD 2,500, which is much higher than its Permit and License Fee.

We hope that the above legal compliance alert is helpful for your investment and help you to invest more confidently.

Disclaimer

The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:

	SON Sokeng, Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870	Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX).
	NOEUM Sokvichhai, Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785	Atty. Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.

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