Profound commerce legal amendments enter effect
Profound commerce legal amendments enter effect
Two bills amending the Law on Commercial Enterprises (“LCE”) and Law on Commercial Regulations and the Commercial Register (“LCRCR”) have been promulgated into law.
The bills – along with another one authorising the ratification of the Cambodia-Korea Free Trade Agreement – were enacted into law by a single Royal Code signed by the King on January 29, exactly one month to the date after the National Assembly unanimously passed (102-0) the three documents.
Ministry of Commerce spokesman Pen Sovicheat told The Post on February 3 that the amendments bring the LCRCR more in line with the actual situation and in accordance with international norms.
And the adjustments to the LCE address the limited number of business categories that commercial enterprises had to choose from, which will now cover online operations and keep up with the latest global developments, he said, noting that his ministry initiated the two bills.
Cambodia Chamber of Commerce vice-president Lim Heng told The Post that the amendment would be very important for business management in the Kingdom, creating a fair playing field for local and foreign investors, and prevent misconduct and perceived injustices involving trademarks or tax payments.
He called out online sellers that do not pay the corresponding taxes imposed on registered brick-and-mortar businesses for engaging in “unfair competition”.
He said the specific provisions of the amendments would hold all businesses accountable to the law in case of wrongdoing related to taxes and trademarks, and ensure proper tax collection.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post that the amendments would regulate many business-associated costs, better prevent and manage trade disputes, and improve and strengthen the spirit of commercial law.
“Most importantly, the new laws bring the various operations falling under the jurisdiction of the Ministry of Commerce up to speed with the emergence of new forms of business, as well as the evolution of global trade as a whole,” he said.
Aiming to facilitate doing business in the Kingdom, the amendments are also designed to allow various automated systems to run smoothly and transparently, at the high level of standards required by the global business world.
