Opening a restaurant in Cambodia (F&B)
Opening a restaurant in Cambodia as a foreigner — 100% foreign-owned company, Ministry of Tourism restaurant licence, MoH food hygiene, patent, VAT, alcohol.
- Difficulty
- Moderate
- Reading
- 7 min
In 3 bullets
- A foreigner can own a restaurant 100% in Cambodia: food and beverage is not a reserved sector. It is a popular but highly competitive market (mostly Phnom Penh, Siem Reap, Sihanoukville).
- Beyond the usual company setup (MoC registration, patent tax, taxation), F&B requires sector licences: a “Restaurant” licence from the Ministry of Tourism (art. 32 of the Law on Tourism) and a food hygiene certificate from the Ministry of Health (MoH).
- Sector-specific taxes: 10% VAT, patent tax, signboard tax, and if you serve alcohol/tobacco, 5% public lighting tax — each detailed below.
1. Overview for a foreign owner
Running a restaurant is among the most common projects for expats in Cambodia, and nothing in the law reserves it to Cambodians: a foreigner can own 100% of a food-and-beverage company (land ownership, by contrast, stays reserved — hence the systematic use of a commercial lease for the premises). General eligibility rules are published on the OBR / registrationservices.gov.kh portal.
2. Company setup (the common base)
A restaurant is not a legal form in itself: you first create a company, then add the F&B licences on top. To avoid duplication, see the dedicated guides:
- Choosing the form: in 95% of cases, a Co. Ltd. (Private Limited Company). See which structure to choose and the full company setup guide (Co. Ltd.) for minimum capital, shareholders and the single-portal incorporation procedure.
- Patent tax (annual business tax) is due from registration: brackets and the 31 March deadline in the patent tax guide.
- Hiring floor and kitchen staff (Cambodians): contract, MLVT declaration, NSSF, salary — see hiring a local employee.
3. Sector F&B licences and competent authorities
This is where a restaurant differs from an ordinary shop. Four levels of authority are involved.
a) Commercial registration — Ministry of Commerce (MoC)
The company registration and its entry in the Commercial Register are handled by the MoC through the single portal. This is the prerequisite for any sector licence (detail in company setup).
b) “Restaurant” licence — Ministry of Tourism (MoT)
The Law on Tourism explicitly classes restaurants among the tourism businesses that require a licence:
- Art. 30 (a): “Tourist restaurants and food stores” fall under the direct responsibility of the Ministry of Tourism.
- Art. 30 (b): “Domestic restaurants and food stores” fall under shared responsibility (Ministry + other authorities).
- Art. 32: “No person shall be able to operate a tourism business without a licence if so required by the Ministry of Tourism or Provincial–Municipal Department of Tourism.”
The “Restaurant” licence is listed in black and white in the Ministry’s official list of tourism licences (alongside Hotel, Guest House, Beer Garden, Karaoke, Resort…). It is now obtained online through the OBR portal (phase 2) in coordination with the Ministry of Tourism, with an indicative turnaround of 7 working days once the file is complete. In Phnom Penh, the Municipal Department of Tourism processes it in practice (art. 38).
c) Food hygiene — Ministry of Health (MoH) and CamControl
Food safety at end-use places (restaurants, cafeterias, food courts) falls under the Ministry of Health (MoH), which issues:
- the certificate of good hygiene practice, and
- the certificate of hygiene for food at the end-use place.
In practice, a large restaurant holding the certificate of good hygiene practice does not need to also apply for the certificate of hygiene for food. Separately from the MoH, CamControl (Camcontrol, under the MoC) handles compliance and fraud repression on foodstuffs, in particular on imports — relevant if you import wine, cheese, meat or pre-packaged products (labelling).
d) Municipal permit and signboard (Khan / Sangkat)
Beyond the ministries, the local authority (the municipality, via the Khan and Sangkat) is involved in the siting of the business and the signboard. The signboard tax is due to the GDT and its amount varies with location, whether the sign is illuminated, and the nationality of the script used (a sign in a foreign language only costs more than one in Khmer). A lit sign facing the street triggers this tax.
e) Alcohol and tobacco
If you serve alcohol, note that Cambodia currently has no finalised dedicated alcohol law (a draft sponsored by the MoH is still in process). In practice, alcohol sales run through the commercial registration (MoC) and, for tax purposes, trigger the public lighting tax (see the tax section). For alcohol production, an approval from the Ministry of Industry is required — outside the scope of a restaurant.
4. Sector-specific taxes
Beyond corporate income tax (TOI, 20%) common to any company, a restaurant meets the following taxes (GDT rates):
| Tax | Rate | Base / what is concerned |
|---|---|---|
| VAT | 10% | Sales of meals and drinks (real regime). Monthly return. |
| Patent tax | KHR 400,000 / 1,200,000 / 3M+ | Annual flat amount by taxpayer size. See patent tax guide. |
| Signboard tax | Variable | Based on location, illumination, nationality of the sign’s script. |
| Public lighting tax (PLT) | 5% | On alcohol and tobacco sales — so it hits a restaurant/bar that serves them. |
| Specific tax (SPT) | Variable | ”Special tax” on certain merchandise/services (incl. some beverages) — check against your menu. |
| Accommodation tax | 2% | On hotel accommodation services — only if the restaurant is attached to a hotel. |
5. Common pitfalls
FAQ
Can a foreigner own a restaurant 100% in Cambodia?
Yes. Food and beverage is not a reserved sector: a 100% foreign-owned Co. Ltd. can run a restaurant. Only land ownership is closed to foreigners — hence the use of a commercial lease for the premises. See which structure to choose.
Which licences are needed on top of company registration?
At a minimum: the “Restaurant” licence from the Ministry of Tourism (art. 32 of the Law on Tourism) and the hygiene certificate from the Ministry of Health (MoH). Add the municipal siting permit, the signboard tax, and — if you serve alcohol — the alcohol-related obligations (framework still in flux) plus the public lighting tax.
Who inspects a restaurant’s hygiene?
The Ministry of Health (MoH), which issues the certificate of good hygiene practice and the certificate of hygiene for food for end-use places. On food imports, CamControl (under the Ministry of Commerce) checks compliance and fraud.
What VAT and taxes apply to a restaurant?
10% VAT on sales, an annual patent tax, the signboard tax, and the 5% public lighting tax if you sell alcohol or tobacco. The 2% accommodation tax applies only if the restaurant is part of a hotel. Details in the patent tax guide and with the GDT.
How long and how much to open?
Allow for company setup (a few days to a few weeks) plus the sector licences (the Tourism licence is announced within 7 working days once the file is complete). On budget, beyond administrative fees, the bulk goes into the lease, fit-out and kitchen: plan a comfortable cash buffer and several possible months of losses at launch.
Sources (4)
Every fact in this guide comes from official documents or government sites. An access date is recorded for each source.