Starting up a food business in cambodia

As what I know, you should register for patent to get rid of government officier's threaten since they usually ask for money from business owner. Normally most local small shop owners never register for anything, just pay some money if officer approaches their place.

BKK IS THAILAND.
GET CAMBODIA BUSINESS VISA,$300+ AT PPHEN AIRPORT ON ARRIVAL. GOOD FOR ENTIRE YEAR (NO 30 DAYS BORDER RUNS LIKE THAILAND) IN THAILAND YOU MUST HAVE THAI AS PART OWNER. CAMBODIA-  NO RESTRICTIONS ON ANY OR ALL BUSINESSES. NO LOCAL NEEDED AS  PARTNER, BANKING IS WEIRD. NO PAPER CHECKS. S'VILLE HAS NO STREET ADDRESSES. NO MAIL DELIVERY. POST OFFICE CALLS YOU IF MAIL COMES.HOUSING IS INEXPENSIVE( MANY BRAND NEW UNITS). FOOD IS HIGH. IF YOU TRY TO BRING VEHICLE YOU WILL BE TAXED HEAVILY. REAL ESTATE WEB SITES WILL SHOW AVAILABLE FOOD SITES.  YOU ARE MUCH BETTER OFF WITH YOUR BUSINESS IN CAMBODIA. MARK MY WORDS! 8 GRAND BEACHES,9 CASINOS, IMPROVING INFRASTRUCTURES (ROADS,ETC). FRIENDLIER LOCALS. I HOPE THIS HELPED.

@Gozillaj...I would suggest spending some time on the ground in PP, carry out on the ground research, due-diligence, speak to other business owners as they have been through the process and can point you in the right direction.

Other posters are correct in saying that you do not need a local business partner, as foreigners can own 100% of any business. You will need to apply for a business license and once you have that, you will also require a Work Permit as the WP rules are now being enforced.

BKK is a good location, but due to this, rental prices are extremely high. It may pay to look towards up-and-coming areas such as Toul Tom Poung, Boueng Tom Poun, or even Ta Khmau.

There are hundreds of restaurants in PP, so you would need to bring something unique to the market if you want to succeed. I have seen dozens of businesses open and close within a matter of months once they realise that there is little to no profit to be made.

Most importantly....make sure you have enough money in the bank to cover all of your expenses for at least 12 - 24 months.


@David...

When talking about Phnom Penh, BKK refers to the Boueng Keng Kong (BKK1, BKK2, BKK3) neighbourhood.

Also, it would be great if you turned your caps lock off and stop shouting at everyone.

I know they're common in the US, but paper cheques are not commonly used in most countries these days. Just for your information, you can still get paper cheques in Cambodia, most banks will issue you a cheque book if you open a cheque account, but hardly anyone uses,or accepts, them.

As to the E-Type (Ordinary/Business) Visa, you only get 30 days on arrival at the airport, then you need to have it extended elsewhere.

david gaetke, I really think you need to up-date yourself somehow.

First, let me say that I am NOT in Cambodia, I am here researching a possible move soon to VN or CAM; that said I bought a restuarant in Colombia 3.5 years ago with Colombian partners and we have operated that business until just recently when I sold my half to my partners. 

I have something important to share with you as I have spent a great deal of time and energy observing and experimenting with a native restaurant.  We bought a long established restaurant with a Grade A location 15 steps from a Grade A+ location.....there is a saying in real estate Location Location Location!

We have made a profit on a yearly basis for all three years YET it has not been easy and we work 12-14 hours per day 7 days per week [many weeks] and take a few days off on slow midweek days per month when things are slow.  Every spring we have to operate at a loss for three full months trying to break even at best as sales fall off the cliff after Christmas / New Years and the kids return to school.   The town is broke after six weeks of fiesta, Christmas and buy new stuff for the kids to restart school.  You will probably have a similar time wherever you are unless you have discovered a new country I have never read about.

As the economy slowed in the last two years we have recieved 120% more competition.  We had 12 new restaurants open up in ONE 3 MONTH PERIOD last summer in a small town of 12,000 people and only a modest tourist trade... WHY, HOW?  Because the locals are poorly educated to doing business and lacking in business acumen, when they see the economy slowing due to low coffee and oil prices the drives of the CO economy or got laid off from their labor jobs growing coffee in the hillsides they borrowed money or used savings to open more restaurants because of 'celoso' or in English 'jealousy' as they ignorantly assumed that life was easy for us business owners with restaurants.  16 months later we have three new restaurants, large ones..but on balance 50% of all the restaurants that opened are closed or sold within the 12 months after opening.   But they have done a significant damage to our income so I am trying to get to a real point here you need to understand.

In these poorer countries you will be competing with locals who are willing to work and live on 25-35% of what you are willing to live on.  They will do without hot water, a/c, internet, wifi, cellphones, new clothes, refrigeration, yaddy yaddi.   Do not put yourself in the position of competing head to head with a local.  They will grind you down through business stupidity in pricing and they will work for nothing. It's like the Ho Chi Minh prophecy in VN about the Americans and before the French metastized in currency.. "You will kill 10 of our men, and we will kill 1 of yours, and in the end it will be you who tire of it." Old Ho

So my suggestion for you is to find an opportunity that makes a little money and if you can't saturate the market fast and then sell out to another expat for profit before SHTF, coop any appearing competition and make them partners with a solid honest documented sharing and crush any competition which takes you on from that day forward.  It's their country, they aint going nowhere!  So you best have a plan.

Pal444 wrote:

First, let me say...

Good post

Pretty sure he was talking about the area commonly known as BKK1, which is not in Thailand.

Do you need an investor?

Yes I do wish I had off when I lived there last year.

Blair

Partners?  Uffffff! This is a subject that could occupy weeks of discussion yaddi Yaddy.  If anyone wants or decides that want a partner and in particular in a restaurant I really really want to advise you on a couple of things.  Money changes everyone... period.   Power changes what's left.

#1) Mandatory.  The partnership must be written down and every possible detail agreed to before commencing operations. The golden rule must apply, he or she who put in the most gold gets to make the money decisions and receive the bulk of the net profits.  On the other hand if the other party is contributing something of equal value like a solid successful background that counterweighs the Golden Rule then so be it but it must be in writing.  Someone has to be able to make decisions and be held accountable for them.  If both parties are equal 50/50 owners then you are set for hard times because no one person can do the above.  In the event both parties demand 50% then I suggest you have in the agreement an agreed method for resolving conflict; otherwise you will end up in a war and both fail....probably.   Being and old boy from Texas I like to use the a West Texas Coin Toss resolution.  If at any time the two parties can't agree on a decision the either party can demand resolution immediately with the WTCT.  Grab a coin agree which side is heads vs. tails and flip it into the air and land on the ground...whomever is the winner makes the decision and both parties walk away satisfied and agree to accept moving forward in good faith...no a-hole behavior just because you don't win.  I got the WTCT from hearing about West Texas ranchers turned oil men who made and lost millions many times and they will tell you a sour partnership will always cost you money,...never never make you money.  No signle decision will be as important as maintaining an upright ship and sailing smoother waters.  Many people are incapable of being a good partner so choose your partner in enslavement carefully.  Petty arguments have ruined ....everything that every could have been....well I don't really need to explain that do I? The WTCT resolution should be included in the agreement by the way for 50/50 partnerships.  I knew of a couple of restuarant partners who entered into the purchase of a restaurant in Florida that was already a huge success, they had been best friends for most of their lives...within 5 years of working a restaurant together..7 days and nights per week they wanted to kill each other and finally had devolved into passing in the dining room and kitchen and not even saying a word, now almost 10 years into it and they don't speak at all... and BTW they now make about $1 million each per year on a single restaurant.  Money and power changes everyone, have a good agreement and if things need to change agree and draft an addedum and move forward....all disputes should be handled by the partnership agreement and if applicable the WTCT.


#2) Everything should be written down, rules, list of allowed vendors, how payments are made and accepted, recipes, ...everything!  All docs and forms to be used in the business are managed via #1.

#3) One partner works full time, maybe lots more hours than the other owner?  Set for trouble! The owners should pay themselves for every hour working just like an employee but at minimum agree hourly rate so that one who works more gets some additional scratch to compensate over and addition to whatever the weekly or monthly net profit split is.  Do this and no one can use it as a reason to get overworked and underpaid.

...the list could go on and on but maybe, just maybe I have helped anyone out there thinking about this to at least stop! Stop! ...think it through and then think again and work towards concensus before the first nail is driven....before you loose a lot of money and years of your life.  If it isn't written down and both parties agreed to then I can only say....too  bad!   BTW: 'Been there and done that!' as we say.

Excellent advice!