MINIMUM REGISTERED CAPITAL OF BANKING AND FINANCIAL INSTITUTIONS, Prakas № B7-016-117-Pro.Kor (NBC) 22 March 2016
This prakas aims to redefine the minimum registered capital for banking and financial institutions. The objective of this Prakas is to strengthen the capital base of such entities.
Based on this prakas, commercial banks incorporated as foreign branches, whose parent bank is rated “investment grade” by a reputable and international independent rating agency, must have a minimum registered capital of at least KHR 200,000,000,000 (two hundred billion riel).
Foreign branches are required to inform the National Bank of Cambodia immediately if their parent bank’s rating is downgraded below “investment grade”. Foreign branches must maintain the same minimum registered capital as a bank specified in article 4 of this prakas in the event that its parent bank does not have “investment grade” rating.
This prakas requires banking institutions to maintain minimum registered capital as follows:
All banks and financial institutions are required to increase their registered capital as defined in articles 3, 4, 5, 6, and article 7 of this prakas within 2 (two) years following implementation of this Prakas.
The following previous provisions are repealed:
LEGAL FORMS OF COMPANIES AND PARTNERSHIPS, Prakas № 137 P.N Ch B P .Br.K (MOC) dated 23 March 2016
This prakas sets out specific words which must be used to identify the legal form of a business entities which must be placed at the end of or below the name of companies and partnerships, as follows:
GOVERNMENT ROLES AND RESPONSIBILITIES
ORGANIZATION AND FUNCTIONING OF THE COUNCIL FOR THE DEVELOPMENT OF CAMBODIA, Sub-Decree № 60 A.N.K dated 05 April 2016
Of important note to investors who are looking to invest in Cambodia, under this sub-decree, the Council for the Development of Cambodia is required to seek approval from the Council of Ministers for any investment project that:
The Council for the Development Cambodia acts as the Royal Government of Cambodia’s “one-stop” service organization responsible for reviewing and approving private investment projects involving exploration, researching, exploitation of oil, gas and natural resources even though those project do not hold investment incentives. The involvement of other competent ministries in the review and approval process must be conducted within the “one-stop” service framework.
This sub-decree abrogates the previous Sub-Decree No. 486 A.N.K dated 14 October 2013 on the organization and functioning of the Council for the Development of Cambodia.
THE AMENDMENT OF ROLES & RESPONSIBILITIES OF THE MINISTRY OF ENVIRONMENT & MINISTRY OF AGRICULTURE, FORESTRY, Sub Decree № 34 (RNKrBK) 04 March 2016
This sub-decree changes the competence of the Ministry of Agriculture, Forestry and Fisheries (“MAFF”) and Ministry of Environment (“MoE”) regarding Economic Land Concessions (“ELC’s”) and Protected Areas, Protected Forests and Fisheries.
Previously, the main government agencies responsible for regulating ELC’s were the MAFF, MoE and provincial offices. Pursuant to this sub-decree, all ELC’s that were under the control of MoE will be transferred to the MAFF. In respect to the management of Protected Areas, Protected Forests and Fisheries, the MoE will take over the MAFF’s responsibility.
LABOR AND EMPLOYMENT
RE-REGISTRATION OF EMPLOYEES WITH THE NATIONAL SOCIAL SECURITY FUND, Notification № 127 (MoLVT) 02 May 2016
As part of the strategic development plan for labour and vocational training and specifically for the launching of health care insurance and pension schemes, the Ministry of Labour and Vocational Training (“MoLVT”) requires enterprises covered by the Law on Social Security Schemes for Persons Defined by the Provisions of the Labour Law to re-register their employees with the National Social Security Fund (“NSSF”).
To re-register with the NSSF, certain identification documents are required such as identity card or passport, a copy of birth certificate, family book and residence book.
The notification does not, however, stipulate a deadline for enterprises to complete re-registration of their employees at the NSSF.
PRAKAS 093/16, DATED 7 MARCH 2016, ON DETERMINATION OF PHASE AND DATE OF IMPLEMENTATION OF SOCIAL SECURITY SCHEME ON HEALTH CARE
This Prakas sets the implementation date for the social security scheme on health care for persons governed by the Cambodian Labour Law as 1 May 2016. There are two phases of implementation. The first phase begins with members of the NSSF that are registered for the health care scheme, victims suffering from permanent disability and survivors (spouse and children being direct dependents of the members of the NSSF deceased due to occupational risks). The next phase will be implemented with dependents of the members of the NSSF including spouse and children.
As an experimental step, the implementation of the health care scheme will start primarily with certain enterprises / establishments located in Phnom Penh, Kandal Province and Kompong Speu Province. We understand from the NSSF that a notification letter will be issued by the NSSF to any enterprises/establishments determined by the NSSF as qualified for this experimental implementation step of the health care scheme.
While the date of implementation is fast approaching, the MoLVT has yet to issue any regulation determining the contribution rate payable by employers and employees.
STRENTHENING THE FOREIGN MANPOWER INSPECTION IN THE KINGDOM OF CAMBODIA, Prakas № 2703P (MOI) 10 March 2016
This prakas aims to provide rules and legal conditions regarding the inspection work of foreign manpower for owners or directors of enterprises and establishments, and foreigners who invest in or are running businesses in Cambodia.
The owners or directors of enterprises or establishment must present the following required documents to the Foreign Manpower Inspection Joint Group:
The prakas empowers the Foreign Manpower Inspection Joint Group as the sole authority having power to conduct foreign manpower inspection at companies and enterprise based on the joint authorization letter issued by the General Department of Labour and General Department of Immigration. Inspection by the Joint Group can be done with or without prior notice.
The prakas reiterates that owners or directors of enterprises who employ foreign personnel or foreign personnel who work, without holding employment card and work book will be subject to penalties, as stated in the provisions of Chapter 16 of the Labour Law and Chapter 6 of the Law on Immigration. The Joint Prakas No. 2662 dated 16 July 2014 on Foreign Manpower Inspection Work or any Prakas or Decision with contents contrary to this Prakas will be abrogated.
*The information provided for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.