In this issue we present Cambodian regulations and information touching on the following:
- Pronouncement on licensing of financial lease companies
- Order on business names of factories and handicrafts
- Instruction on development of coastal areas of the Kingdom of Cambodia
- Promulgation of the Law on Control of Drugs
- Tax collection on all kinds of transportation means and vehicles for the year 2012
- Establishment of Special Economic Zone Administration of Neangkok-Koh Kong
- BANKING 2012
LICENSING OF FINANCIAL LEASE COMPANIES, Prakas # 7-011-242 (NBC), 27 December 2011
This Prakas aims to set up, promote and develop the financial lease industry in the country as well as to strengthen the supervision over and administration of financial lease companies by providing guidance for the licensing and regulation of companies engaged in financial leasing. This Prakas covers financial lease companies operating in the Kingdom of Cambodia. This refers to institutions solely engaging in the financial lease business. The minimum registered capital of a financial lease company is KHR 200,000,000 and the registered capital shall be the paid-in money.
No person, whether natural or legal, shall carry on a financial lease business unless the person holds a license issued by the National Bank of Cambodia. The application for a license shall be drawn up by a duly authorized person. The National Bank of Cambodia shall provide written notification of its decision within three months from the receipt of complete set of application. A financial lease company must fulfill all conditions set forth in the principle approval letter before receiving a license from the National Bank of Cambodia. The license is valid for a period of five years from the approval date and it can be renewed. Any person or company engaged or engaging in the financial lease business without a license shall apply for a license from the National Bank of Cambodia within six months from the date of this Prakas.
- BUSINESS/COMMERCE 2012
BUSINESS NAME of factory and handicrafts, Order #001 (MIME), 16 January 2012
This Order aims to urge the operation of factories and handicrafts to comply with the Law on Management of Factories and Handicrafts, and the Prakas on Procedure for Implementing Provisions on Operation of Factories and Handicrafts, all factories and handicrafts shall be required to have a business name.
The purposes of the naming of factories and handicrafts are: (a) to be effective in managing factories and handicrafts; (b) to strengthen responsibility of the owners of factories and handicrafts for complying with the laws and regulations; and (c) to increase effectiveness of the business and business relations. Owners of factories and handicrafts shall be required to pronounce the names of factories and handicrafts when submitting an application to establish a factory and handicraft at the Ministry of Industry, Mines and Energy or to register at the Departments of Industry, Mines and Energy in municipalities-provinces.
- ENVIRONMENT 2012
DEVELOPMENT OF coastal AREAS OF THE KINGDOM OF CAMBODIA, Instructional Circular # 01 (RGC), 3 February 2012
This Circular aims to instruct all relevant ministries-institutions and the sub-national administration to implement the principles for managing, using, maintaining, protecting and developing the coastal areas of the Kingdom of Cambodia including the land, islands and marine territory. This Circular states that all assignments for the private investment and development in the coastal areas of the Kingdom of Cambodia shall comply with the determined principles of the Government. All developments on the coastal areas, islands and economic and tourism activities shall ensure the public, social and environmental safety.
- CRIMINAL LAW AND PROCEDURE 2012
PROMULGATION OF THE LAW ON DRUGs CONTROL, Royal Kram # NS/RKM/0112/001 (Royal Palace), 2 January 2012.
This Law aims to prevent, protect, fight against drug offenses, to control all legal activities in relation to drugs in the Kingdom of Cambodia, and to ensure the implementation and obligation of the Kingdom of Cambodia, which is a party to the Conventions and Protocols of the United Nations related to drugs.
The goals of this Law are: (i) to reduce the planting, production, trafficking, circulation, keeping and distribution of illegal drugs; (ii) to prevent and eliminate illegal drug use; (iii) to treat/cure, restore rehabilitate and integrate drug addicts back into society; (iv) to protect and promote the well-being of people; and (iv) to contribute to protecting public order and social security and safety. This Law extends the scope on all activities related to drugs in the Kingdom of Cambodia. The National Authority for combating drugs shall be an institution for implementing the policy of the Royal Government in fighting against drugs. The legal norm under the Law related to the Law on Drugs Control shall continue to have an effect for implementation until the new legal standard is replaced except for any provisions which are contrary to the spirit of this Law.
- TAXATION 2012
TAX COLLECTION ON ALL KINDS OF TRANSPORTATION MEANS AND VEHICLES FOR THE YEAR 2012, Prakas #042 (MEF), 10 February 2012
This Prakas aims to inform owners of all types of transportation means and vehicles that tax on transportation for the year 2012 shall be collected from 15 February 2012 until 15 July 2012. The annex table concerning the tax payment for respective types of transportation is attached to this Prakas.
- INVESTMENT LAWS/INVESTMENT COMPANIES 2012
ESTABLISHMENT OF NEANG KOK-KOH KONG SPECIAL ECONOMIC ZONE ADMINISTRATION, Decision #03 (RGC), 13 January 2012
It is decided to establish a Special Economic Zone Administration of Neangkok-Koh Kong located in Neang Kok village, Paklang commune, Mondulseima district in Koh Kong province.