Tom Starkey
DFDL Cambodia and Impact Hub joined forces to support sustainable businesses with an informative session on business registration for Micro, Small, and Medium-sized Enterprises (MSMEs). The event, titled “Updates on Business Registration for MSMEs,” brought together seasoned professionals from DFDL to guide entrepreneurs through the complex processes of registration and compliance in Cambodia.
The session featured presentations by senior consultants from DFDL, including:
- Samnangvathana Sor, Senior Consultant
- Julie Keo, Business Development & Consultant
- Vajiravann Chamnan, Tax Partner
- Vattanakpagna Chhun, Senior Accounting Manager
The Right Registration Type Is Crucial For Compliance
Julie emphasized the critical role of MSMEs in Cambodia’s economic landscape. “MSMEs are the backbone of economic growth in Cambodia, driving innovation and job creation,” she noted. “This event is designed to equip entrepreneurs and startups with the knowledge they need to navigate challenges and seize opportunities, ensuring they can scale up and thrive in an increasingly competitive market.”
Samnangvathana kicked off the presentations by underscoring the importance of selecting the appropriate business registration type. “Choosing the right registration type is crucial for compliance, especially for SMEs,” she explained. “Our session aims to guide participants through the registration process with the relevant authorities and help them meet ongoing corporate compliance requirements.”
Proper Accounting Can Enhance Transparency
Vattanakpagna then provided an insightful overview of essential accounting practices, covering key documentation such as balance sheets, profit and loss statements, and financial reporting. She highlighted how proper accounting can enhance transparency, aid in risk assessment, and support investment planning. Vattanakpagna also addressed compliance with the Accounting and Auditing Regulator (ACAR) in Cambodia, detailing the steps for registration, obtaining financial reporting identification numbers, and adhering to audit requirements.
The session culminated in a panel discussion featuring the key speakers alongside Melanie Mossard, CEO of Impact Hub, and Steven Gargadennec, Managing Partner at Klapyahandz.
When asked about the ideal timing for business registration, Mossard emphasized the importance of market traction and strategic timing. “There comes a point when companies will lose potential customers and partners if they are not registered,” she said. “But before registering, businesses need to assess whether they have the necessary financial management in place. It’s also essential to understand how to properly close a business if necessary.”
Read More: Explainer: ACAR and Unaudited Financial Statements in 2024 – DFDL
Owners Don’t Anticipate The Costs Of Registration
Mossard further elaborated on the challenges businesses face in Cambodia when it comes to registration. “One of the challenges we’ve encountered is that some business owners don’t anticipate the costs of registration or how it might affect the sustainability of their business. Others attempt the process on their own, which can lead to mistakes, given its complexity. Accessing accurate information, such as through the tax department’s ChatBot, and maintaining proper financial management is crucial.”
Mossard noted that Impact Hub’s support for events like this stems from a desire to promote sustainable businesses. “We want to ensure entrepreneurs have the necessary information on registration and compliance to thrive.”
Steven Gargadennec of Klapyahandz highlighted the importance of transparency for creative businesses. “We always encourage our artists to register, as it not only ensures compliance but also opens doors for sponsorships from bigger companies,” he explained. “In our work with brands and sponsors, taxes and VAT are always part of the equation, so being registered is key to doing business and contributing to Cambodia’s economic development.”
Through this comprehensive session, DFDL and Impact Hub provided MSMEs with invaluable insights into business registration and compliance, reinforcing their commitment to supporting Cambodia’s growing entrepreneurial ecosystem. Click here to find out more from DFDL Cambodia experts.
