JOINT PRAKAS 315 AND 316 ISSUED BY THE MINISTRY OF COMMERCE AND THE MINISTRY OF ECONOMY AND FINANCE, dated 12 May 2021

The Ministry of Commerce (“MOC”) issued a new announcement (“Announcement”) on the Granting of E-Commerce Permits and Licenses on 26 May 2021. Eligible applicants may now apply for e-commerce permits or licenses with immediate effect from the MOC through an online portal – www.ecommercelicensing.moc.gov.kh – or submit hard copy applications to the Department of Business Registration.

This Announcement comes in the wake of the enactment of the Law on E-Commerce, Sub-Decree on Classifications, Formalities and Procedures on the Issuance of Permits and Licenses (and Exemptions thereto) to Intermediaries and E-Commerce Service Providers, and Prakas on the Issuance of E-Commerce Permits and Licenses. Individuals and sole proprietors conducting e-commerce activities must apply for an e-commerce permit. Legal persons or branch offices of foreign companies on the other hand must apply for e-Commerce licenses.

The MOC and the Ministry of the Economy and Finance (“MEF”) issued Joint Prakas 315 on 12 May 2021, which sets out the official fees for e-commerce permits and licenses (“Prakas 315”), and Joint Prakas 316 on fines that may be levied by the MOC on 12 May 2021 (“Prakas 316”). Prakas 315 and Prakas 316 came into effect on 26 May 2021. The relevant fees and fines are as follows:

Before applying for an e-commerce license, legal persons and the branch offices of foreign companies must first obtain an online certificate from and register a domain name with the Ministry of Posts and Telecommunications. We understand from the MOC that, for individuals and sole proprietors, this requirement is not compulsory.

Should you require any legal support in preparing the application for an e-commerce permit or license, please contact our team at [email protected].

SANCTIONS UNDER JOINT PRKAS 316

The MOC and MEF have recently published details of certain new monetary fines under Prakas 316 as set out below:

Based on Article 228 of the Law on Commercial Enterprises (“LCE”), a public limited company issuing securities to the public that remain outstanding and are held by more than one person must file a copy of its financial statements and accompanying documents with the MOC. Strictly applying Article 228 of the LCE, only public limited companies issuing shares and bonds to the public are subject to the requirement to file a copy of financial statements with the MOC. However, based on our understanding, the MOC requires all public limited companies (including non-listed public limited companies, such as those operating in insurance, finance and securities sectors) to file the financial statements with the MOC.  

With respect to timing, we understand from the MOC that the financial statements may be filed together with the annual declaration of commercial enterprise (“ADCE”) in accordance with Prakas 107 on the filling of ADCE, issued on 05 April 2017.

Joint Prakas 315 and 316 replace and supersede all previous regulations. Any rules or legal provisions that contradict these are considered abrogated.

Should you require any legal support in the above matters, please contact our team at [email protected].

The information provided here is 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.

Contacts

Sophorne Kheang

Partner 

[email protected]

Nearirath Sreng

Deputy Head of Cambodia Banking, Finance and Technology Practice

[email protected]

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