BANKING AND FINANCE
MANAGEMENT OF PLEDGE AND SECURITY BY TRANSFER BUSINESSES
Prakas No. 030 SHV.PK, issued by the Ministry of Economy and Finance dated 13 January 2017
This Prakas aims, among other things, to ensure effective management and control of pledge and security by transfer businesses and to create legal fast cash supply system other than banking system. In addition, this Prakas aims to determine mechanisms, rules, and procedures for management and control of such businesses transactions in Cambodia. This Prakas is to apply to any activities related to pledge and security by transfer in Cambodia.
According to this Prakas, conducting such pledge and security by transfer businesses required obtaining a license or an approval from the Ministry/Department of Economy and Finance (“MEF/DEF”) and certain requirements must be met in order to obtain such license or approval.
By this Prakas, the previous Prakas No. 028 SHV.PK., dated 12 January 2010, on Licensing to Pledge Business and Sale-Purchase of Collateral and Security by Transfer Business is repealed. All previous licenses of pledge business and/or security by transfer business issued by the MEF prior to entry into effect of this Prakas remain valid until their expiration.
CORPORATE & COMMERCIAL
SECURITIES – DISPUTE RESOLUTION
Prakas No. 012/17 of the Securities and Exchange Commission of Cambodia, dated 12 September 2017
This prakas provides conciliation and resolution mechanisms and procedures for certain types of disputes arising between securities investors and entities regulated and licensed, or otherwise permitted or recognized, by the Securities and Exchange Commission of Cambodia (“SECC”), including securities firms, derivatives brokers and securities issuers, among others. Under this prakas, a party may file a complaint for conciliation with the SECC for disputes related to the securities sector, after which the SECC will appoint one of more conciliators. The conciliation decision is non-binding. In the event there remain any unsettled issues follows the conciliation process, a party may file a complaint for dispute resolution with the SECC or with an arbitration tribunal if agreed by the parties or with a competent court.
FORMALITIES AND PROCEDURES FOR GRANTING OF CERTIFICATE FOR SEED QUALITY
Prakas № 375 dated 6 July 2017, issued by the Ministry of Agriculture, Forestry and Fisheries (“MAFF”).
This Prakas establishes formalities and procedures for granting of certificates for seed quality for the purpose of managing business activities involving seeds.
Under this Prakas, all business activities relating to any variety of seeds in Cambodia, including production, processing, importing and exporting of seeds are subject to application for a certificate for seed quality and seed registration in the national list of seed varieties to be obtained from the General Department of Agriculture (“GDA”) of the MAFF, the regulatory authority in charge of seed management.
The Prakas also requires any person engaging in seed-related business to obtain a business permit from the GDA, subject to fulfillment of requirements pursuant to the Law on Seed Management and Plant Breeder’s Rights dated 20 May 2008. In addition to the above business permit, a permit issued by respective provincial Department of Agriculture, Forestry and Fisheries (“DAFF”) must be held for seeding or distribution of seeds within specific provincial or municipal market.
Separately, research institutes and laboratories providing seed-related businesses or seed technical services are also subject to a permit from the MAFF.
In order to import or export seeds, a permit from the GDA must be obtained, in addition to obtaining a certificate for seed quality. Further, an advertisement of seeds can only be made after obtaining a permit from the GDA.
Any transfer of a permit relating to seeds businesses is subject to prior authorization from the GDA or the relevant DAFF which issued the permit.
LABEL CONTAINING INFORMATION TO BE DISPLAYED ON THE SEED PACKAGE
Prakas № 378, dated 07 July 2017, issued by the MAFF.
This Prakas sets requirements of information to be displayed on the package of seeds of any kind being traded or distributed in Cambodia, for the purpose of safety and quality of seeds.
Under this Prakas, any person who applies for a business permit relating to seeds must request from the GDA for a sample of seed information label. A completed seed information label will then be reviewed and evaluated by the GDA in accordance with the seed labelling requirements under this Prakas. For instance, the seed information label must be in Khmer language which is readable, understandable and not easy to fade away and it must contain important information of the seeds for users, including among others, the seed name, seed variety, category, trade name, humidity rate, germination rate, pureness of the seeds, date of production and packaging and its expiration date, usage, name and address of the company/country of origin, name and address of the company/country of destination and the quantity of the seeds.
In addition to the seed information label, this Prakas also requires that any person conducting any business relating to seeds or distribution of seeds in Cambodia market to obtain a sign confirming the certified seed quality from the GDA to be displayed on the seed package prior to conducting such business or distribution. Apparently this sign is additional to the certificate for the seed quality issued by the GDA (as required under the above Prakas 375).
EMPLOYMENT – FOREIGN EMPLOYEE QUOTA
ONLINE QUOTA APPLICATIONS OPENED FROM 1 SEPTEMBER 2017 TO 30 NOVEMBER 2017
Notification 272, dated 31 August 2017, issued by the Ministry of Labour and Vocational Training (“MLVT”)
Under Notification 272, quota application for foreign employees must be submitted via the MLVT online system from 1 September 2017 to 30 November 2017. Once the foreign employee quota approval is secured, work permits must be obtained or renewed for each foreign employee from 1 January 2018 to 31 March 2018 via the MLVT online system. Please bear in mind that this requirement applies to every employer in Cambodia, including representative offices, branches, limited liability companies and NGOs.
Foreign employees must hold a valid work permit in order to apply for a multiple entry business visa (also known as a Visa E).
Failure to comply with the foreign employee quota and work permit requirements could result in fines being imposed by the labour authority and other relevant authorities in Cambodia. In serious circumstances, imprisonment for up to three months and/or deportation orders may be imposed upon the foreign employee concerned.
We would be pleased to assist your organization in preparing and submitting the 2018 foreign employee quota and work permit applications.
MANAGEMENT OF PROFESSIONAL ON APPRAISAL SERVICE ON REAL ESTATE AND REAL ESTATE SERVICE
Prakas № 636 dated 29 June 2017 issued by Ministry of Economy and Finance
This Prakas is established with a goal to determine a rule and procedure on management and supervise professional on appraisal service on real estate and real estate agent service in Cambodia.
This Prakas provides the classifications of professional certificate and license on appraisal service on real estate and real estate agent service, supervisor authority, method of controlling these business activities, function and obligation of the certificate and license holder, dispute resolution and penalty for non-compliance.
Under this Prakas, all professional certificates and licenses for appraisal service on real estate and real estate agent service are required to obtain a professional certificate and license on appraisal service on real estate and real estate agent service issued by the Ministry of Economy and Finance.
License on Appraisal Service on Real Estate is divided in three categories as follows:
- Appraisal Service on Real Estate License;
- Real Estate Agent License; and
- Immovable property Management License.
Professional Certificate on Real Estate is divided in two categories as follows:
- Real Estate Evaluation Certificate; and
- Real Estate Agent Certificate.
The business operating license and professional certificate are valid for 3 years (renewable) and are cannot be transferred or sold.
SERVICE FEES AND COMMISSIONS FEES FOR PROFESSIONAL ON APPRAISAL SERVICE ON REAL ESTATE AND REAL ESTATE SERVICE
Prakas № 761 dated 31 July 2017 issued by Ministry of Economy and Finance
This Prakas aims to provide a basic determination of service fees and commission fees for professionals on appraisal services on real estate.
Under this Prakas, the period of valuation of immovable property which has been valuated greater than 2 years commencing from the latest date of valuation, is required to be re-valuated.
This Prakas requires all real estate agent companies to provide a table of professional service fees and commission fees to their customers before providing their services.
*The information provided is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situation.
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