OBRS listing nears 34,000, $10B capital

THE total number of companies enrolled through the Online Business Registration System (OBRS) via IT Platform phase I – commonly known as Single Portal – had reached almost 34,000 as of February 25, as reported by OBRS.

Six government institutions were incorporated into the registration portal during the initial phase, launched on June 15, 2020, incorporating four ministries – Economy and Finance; Interior; Commerce; and Labour and Vocational Training – along with the General Department of Taxation (GDT) and the Council for the Development of Cambodia (CDC).

Subsequently, the government announced the initiation of the second and third phases of the project on September 15, 2021, and June 22, 2023, respectively.

According to OBRS, 33,986 businesses had successfully listed through the system as of February 25, totalling a registered capital or $10.22 billion. Of these, women-owned enterprises accounted for 38%.

At the beginning of 2024, there were 32,323 companies registered with a total capital of $9.6 billion.

Broken down by industry: the construction sector accounted for approximately $1.16 billion of the registered capital, or 11.3%; real estate ($1.06 billion, or 10.35%); accommodation services ($1.01 billion, or 9.88%); management consulting ($600 million, or 5.87%); garment manufacturing, excluding fur ($542 million, or 5.31%); and other sectors ($5.85 billion, or 57.37%).

OBRS noted that an additional 18,382 other ventures have applied for licensing, along with three applications that were rejected.

Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post on February 28 that the increasing number of registrations is due to legal enforcement by authorities and business owners’ growing awareness of their obligation to legitimise their operations.

He noted that complete registration of all businesses would yield numerous benefits for both authorities and businesspeople.

Heng said that for authorities, it would mean more efficient management, simplified planning, support and notably enhanced tax revenue collection, while the private sector would gain access to technical training tailored to their business categories, aiding in reducing sales misrepresentations and more.

He added that the simplification of registration procedures and enhanced technological literacy among business owners are also key factors driving the uptick in listings.

“Business registration is crucial as it curtails competition and nontransparency, while aiding in augmenting tax revenue for the national budget,” Heng stated.

Chin Ken, president of the Digital Technology Association of Cambodia (DTAC), highlighted that streamlined registration processes and stringent law enforcement are prompting more business owners to register.

Ken said that given the substantial number of small and medium-sized enterprises (SMEs) in Cambodia, especially those unregistered, he anticipates a continual rise in the number of listed companies.

“Complete business registration will positively impact both the government and the private sector,” he added.