Opening an education business in Cambodia

TL;DR

• Opening an education business in Cambodia means two layers of authorisation: first a company registered with the Ministry of Commerce (MoC), then a sector licence from the Ministry of Education, Youth and Sport (MoEYS) specific to the educational activity.
• MoEYS regulates, licenses and recognises private and international schools, from pre-school to secondary; for higher education, the Accreditation Committee of Cambodia (ACC) accredits institutions allowed to award degrees.
• Demand is strong (private K-12 schools, international schools, language and test centres, vocational/TVET), but the licence requires an approved curriculum, compliant premises and qualified teachers — do not sign a lease before the MoEYS file is scoped.

Sector overview

Cambodia’s private education sector is one of the most dynamic in South-East Asia, concentrated in Phnom Penh and Siem Reap, with year-round demand. Four main segments:

• Private K-12 schools: kindergarten, primary and secondary following a reinforced national curriculum (often bilingual Khmer/English).
• International schools: foreign curricula (Cambridge IGCSE, IB, French baccalaureate via the AEFE, US AP). Expatriate and upper-middle-class Khmer families.
• Language and test centres: English, Chinese, French, Korean; IELTS / TOEFL / HSK preparation. The easiest entry point.
• Vocational training / TVET (Technical and Vocational Education and Training): IT, hospitality, trades, adult continuing education.

Step 1 — Set up the company (general setup)

Like any commercial activity in Cambodia, a private education business must first exist as a company registered with the MoC:

• The Co. Ltd. (Private Limited Company) is the standard — 100% foreign capital is allowed in education, except for land ownership. See setting up a company.
• To choose between Co. Ltd., single-member company, branch, etc., see the business structures comparison.

This step follows the standard procedure (registration via the single portal, tax registration with the GDT, annual patente). What makes an education project different is Step 2.

Step 2 — The MoEYS sector licence

The MoEYS is the authority responsible for the opening, recognition and closing of private schools (from pre-school to secondary), and for regulating international schools operating in Cambodia. The licence covers several areas:

Licence / recognition of the institution

• File an opening application with MoEYS (the relevant department depends on the level: pre-school, primary, general secondary).
• Official recognition of the institution as a private educational institution.

Curriculum (programme approval)

• Curriculum approval by MoEYS.
• Private institutions providing general education must include a Khmer programme as a fundamental subject — including international schools enrolling Cambodian pupils.

Premises and safety standards

• Compliance of the premises (classrooms, floor area, hygiene) and adherence to the safety standards (fire, evacuation, sanitation) required for an institution receiving children.

Teacher qualifications

• Teachers must hold the required qualifications. Foreign teachers additionally need an EB visa and a work permit (see below).

Higher education: ACC accreditation

If your project awards degrees (Bachelor, Master, PhD), it falls under higher education and must be accredited by the Accreditation Committee of Cambodia (ACC):

• Only ACC-accredited institutions may confer Bachelor, Master and PhD degrees.
• Accreditation is institutional and assesses governance, academic quality, programmes and faculty qualifications.
• Two statuses: provisional accreditation (reviewed at 3 years) then full accreditation (5-year mandate).

Tax angle

Once the company is set up and the institution licensed, tax follows the general rules, with a few specifics worth knowing:

• VAT — certain education services are exempt. The GDT lists education among VAT-exempt supplies. Note: “exempt” is not “0%” — an exempt supply charges no VAT but cannot recover input VAT on its purchases. The exact scope of exempt education services should be confirmed case by case with the GDT (a commercial language centre and a general school are not necessarily treated alike). See the VAT guide.
• Investment incentives (QIP). QIP status may, depending on the project and the promoted sector, grant exemptions (income tax, customs duties). Its application to a purely educational project is not automatic: check with the Council for the Development of Cambodia (CDC) before structuring.
• Patente (annual business tax): due from registration, as for any company. See the patente guide.
• Tax on Income (ToI) and salaries (ToS): the institution files its corporate income tax and withholds ToS on salaries (teachers, staff). See business structures.

Foreign teachers: visa and work permit

An education business often employs foreign teachers. Each needs an EB visa and a work permit tied to your company. The procedure is the same as for any foreign employee — see the work permit guide. Budget this cost and lead time into your recruitment plan.

Common pitfalls

FAQ

Do I need a Cambodian partner to open a school?

Not for the company: education allows 100% foreign capital via a Co. Ltd., except for land ownership (reserved for Cambodians, hence the long lease). The MoEYS licence is required regardless of the shareholders’ nationality.

Does a language centre need the same licence as a school?

Not always. A language centre or short course (under one year) may go through the one-window office (OWSO) rather than a direct MoEYS filing, which is lighter. A full K-12 school goes through MoEYS. To be confirmed for your exact format.

What is the difference between the MoEYS licence and ACC accreditation?

MoEYS licenses and recognises schools from pre-school to secondary. The ACC accredits higher education institutions allowed to award degrees (Bachelor, Master, PhD). If you train without awarding a university degree, you stay on the MoEYS side.

Is tuition subject to VAT?

The GDT classes certain education services among VAT-exempt supplies. But the scope is not universal, and “exempt” also means no recovery of input VAT. Get confirmation, supply by supply, from the GDT or an adviser. See the VAT guide.

How long does it take to open, in total?

The company is set up in a few weeks via the single portal. The MoEYS licence (curriculum file + premises inspection) is the limiting factor: expect several months depending on the level and the premises’ compliance. For higher education, ACC accreditation is longer still. Plan around the education step, not the company step.

Where can I find existing schools to benchmark?

Our schools in Cambodia guide lists the main institutions (LFRD, ISPP, NISC, iCAN…), their curricula and fees — useful to scope your positioning and pricing.