Steady increase in IT business platform registration

Steady increase in IT business platform registration

This is an uptick from 20,693 companies registered in the beginning of 2023 with a cumulative share capital of $5.8 billion, according to the Online Business Registration Service.

Six ministries as well as the General Department of Taxation and Council for the Development of Cambodia were integrated into the business registration portal in its initial phase, which was launched on June 15, 2020.

Following that, the second phase was launched on September 15, 2021 with the third phase on June 22 with additional ministries and institutions participating in the system.

Based on the company profile, 38 per cent of those registered comprise female-owned companies.

In terms of the business sector, construction accounted for the lion’s share at $1.08 billion or 13.1 per cent, followed by real estate ($921 million; 11.2 per cent), accommodation services ($898 million; 10.9 per cent), management consulting activities ($475 million; 5.8 per cent) and manufacturing ($475 million; 5.8 per cent).

Apart from that, 15,992 other companies have applied for reservations and two have been rejected.

Cambodia Digital Tech Association (CDTA) president Chhin Ken told The Post on August 9 that in recent years, the adoption of IT in Cambodia has steadily risen due to the important role technology is playing in social activities around the world.

“I noticed that after the government announced the introduction of the IT platform for company registration, the number of companies that applied for registration increased significantly.

“The growth of business registration companies now is due to the fact that most business owners are aware of their obligation and know how to use technology to apply for registration,” he said.

In a bid to accelerate Cambodia’s economic growth, Chhin Ken said Cambodian children must strive to develop their technological skills to be able to compete with their regional neighbours and the rest of the world.

Cambodia Chamber of Commerce vice-president Lim Heng observed that since its launch more than two years ago, business owners and companies have registered their businesses, which has reduced many complicated procedures that require a lot of documentation and filing in different places.

Digital registration forms not only help the private sector save time and money, but also enable the government to gather information on the number and status of existing businesses, as well as manage tax revenue.

“The private sector always wants procedures that are easy, fast and cost-effective. On the other hand, the use of technology also facilitates the registration of people from anywhere,” he said.

Minister of Economy and Finance Aun Pornmoniroth at the launch of the “Information Technology Business Registration Platform, Phase III” on June 22, said digitalisation and digital transformation is a key priority that Cambodia is pursuing by creating a new digital economy model, increasing productivity and ensuring a strong economic growth.

In line with that, the government set out two long-term policies - the Cambodian Digital Economic and Social Policy Framework 2021-2035 and Digital Government Policy 2022-2035.

“The vision is to build a smart and vibrant digital government, economy and society,” he said, adding that the establishment of an IT business registration system is an important reform in the process of building a digital government, economy and society.

phnompenh post