Guide to Setting Up a Hotel in Cambodia as a British Citizen
With approximately 6.7 million visitors visiting the country from different parts of the world in 2024, the tourism sector of Cambodia has been experiencing a lot of growth. The country is home to some of the top tourist destinations like Siem Reap, Phnom Penh, Sihanoukville, Kampot, and others. This is exactly what brings in tourists to this country. This, in turn, is also prompting individuals with the necessary business knowledge to open their hotel in the country.
From Americans to Britishers, nationalities from different parts of the world. Well, are you a UK citizen who is planning to do the same and planning to travel with a Cambodia business visa online Then count your business among the approximate 4600 UK-owned hospitality businesses in the country. However, this process isn’t as easy as it seems. So you must start the process by gaining the necessary knowledge.
Travel Requirements for British Citizens
Well, before you start your hotel in Cambodia, you will have to really know the place. This is necessary to complete the steps that come before opening your hotel. So, start your journey by meeting the travel requirements for your visit. Some of the things that you will need for your travel are:
Have a Passport
Your passport must stay valid 6 months beyond your travel date. Other than that, it should also have at least two blank pages and be in machine-readable condition, where all your information is clearly visible.
Get Your Visa
The next thing that you need to do is start your Cambodia evisa application process. You will be required to get a business visa as you are traveling with the motive to start a business and take part in other types of business activities. This is a single-entry visa that allows you 3 months’ validity from its date of issue. However, you are only allowed a stay of 1 month. The steps of getting this visa are:
- Visit the Cambodia business visa online application site.
- Fill out your application form with accurate details related to yourself and your visit.
- Add scanned copies of the necessary documents, like a valid passport, a recent passport-sized photograph, documents supporting your business visit, bank statements, and other things required by the authority.
- Pay the fee for the visa through a valid debit or credit card.
- Wait around 3 to 5 business days to get your visa application processed.
- Receive the approval letter in the email ID that you added on your application form. Get a few scanned copies of the letter to the airport during immigration.
Note: Inform the Helpdesk if you do not receive the letter in time.
Legal Considerations for British Citizens
Running a successful hotel business doesn’t end with getting a Cambodia business visa online. Rather, it starts with that and moves on to complying with the legal requirements. There are a few things that you will have to get sorted out, including:
Can a Foreigner Own a Hotel in Cambodia
Yes, they can. Foreigners are allowed to own 100% of a business. However, they cannot own any land in the country. Due to this, you will be required to explore options like leasing land.
Other than that, they can also opt for using a nominee structure to open a hotel in Cambodia. This allows a British individual to indirectly control the ownership and operations of the hotel, making a way around the Cambodian laws that restrict direct foreign ownership of land and property. For this, you will be required to have a Cambodian citizen as the nominee who will legally own the hotel’s assets. But you will be the one who maintains control through agreements and a security arrangement.
Company Registration Process
Getting your company registered is a must for all. For this, you will have to start with;
- Choosing a business structure, a private limited company is the most common selection.
- Offer the necessary documents like application form to the Phnom Penh or Mayor, a copy of the company’s articles of incorporation (in case of a limited company), documents related to a partnership business, a copy of the business license, a copy of the passport, a photo of the business’s entrance, and a lease agreement or ownership for the land.
- It will take around 7 to 10 working days for the application to be processed.
Licensing and Permits
Remember to apply for the permits necessary for your business operations. This includes:
- Hotel license from the Ministry of Tourism
- Construction permit only if you are building from scratch
- Certificates regarding fire safety, hygiene, and health protection
- Approval from the local authority
Note: You can work with local agents, consultants, or a lawyer to avoid bureaucratic hurdles and legal risks.
Finding and Acquiring Property
Finding the perfect location for your hotel isn’t tough when you know how it’s done. We have already discussed the possibilities of leasing or owning land. Other than that, you can also choose between building a new property or choosing an existing one, depending on what you want. Both come with their perks, so evaluate which one is suitable for you.
However, the most important consideration in this is to choose an appropriate location. In our opinion, you should pick a location depending on your hotel type, whether it is luxury, eco-lodge, or backpacker hostel. Other than that, you should also research what the upcoming hotspots for tourism development are, simultaneously when getting a Cambodia business visa online. In case you are into spending a good amount of money, you can pick a location near the popular tourist attractions.
Staffing and Operations
When planning operations, you should remember that your aim should be to blend Khmer hospitality with international standards. This way you will be able to create a hotel that looks a part of the culture, all while introducing international excellence.
One can choose between hiring local and foreign staff, although in our opinion, the first one is better. This is because locals are better at understanding the culture, making them better at offering an authentic experience. In case you choose to bring foreign staff, you will have to arrange work permits for all. Overall, you should remember to respect the labor laws and follow fair employment practices in the country.
Banking, Finance, and Taxes
Having a bank account in the country is a must for all. So, make sure you open a business bank account in banks like ABA Bank, Foreign Trade Bank of Cambodia, ACLEDA Bank Plc. and others. Some of the requirements that you will have to meet for this account are to have a valid passport, get a Cambodia business visa online, residency proof, and a minimum deposit. This deposit completely depends on the terms of the bank.
Next, you will have to research the types of taxes for the country. Some of these include corporate tax, VAT, withholding, and tourism-related taxes. Managing taxes is tough, so it is best to hire a local accountant or tax advisor.
Marketing Your Hotel
As your hotel starts nearing its opening date, you should start coming up with different marketing strategies for your hotel. This is as important as filling out the Cambodian evisa application on time. For this, you can opt for both digital and physical marketing as both have their perks. Moreover, you can also take the help of social media and do paid collaborations with travel bloggers and influencers to spread the word regarding your hotel. This will help you build your brand in the best way.
Above all, always remember that it is extremely important to reach the right audience, which ideally should be European tourists (they frequently visit the country) and digital nomads. For this, you can also use OTAs (Online Travel Agencies) like Booking.com, Agoda, and Expedia.
Feeling Confident to Start Your Hotel in Cambodia as a UK Citizen
Opening your very own hotel in Cambodia as a British person might seem intimidating. However, this gets easy when you uncover the simple steps of doing it. Your journey starts with completing the Cambodia evisa application for business purposes and ends with achieving success with your hotel. In the middle, you are required to get multiple permits, register your business, and arrange for other necessary things that are required for your hotel. Other than that, you should also do your research, build local connections, and consult professionals to effectively complete all the steps.