Cambodian Commercial Law

Cambodian commercial law is the law that governs commercial activities and businesspeople practicing their their business in Cambodia, so they should pursue to know and understand it clearly because it gives so much benefit to them. The followings are being detailed about its characters, its promulgation and its function.

Characters of the commercial law are two types systems that exist the Civil and Common Law systems, but the most of which are presently the common law system due to the government’s decision. The following laws have been actually promulgated to implement in Cambodia.

• Commercial Code (1950)
• Law on Commercial Rules and Registers (1995&1999)
• Law on Management of Quality and Safety of Products and Services (2000)
• Law concerning Marks, Trade Name and Acts of Unfair Competition (2002)
• Law on Commercial Enterprises (2005)
• Law on Commercial Arbitration (2006)
• Law on Insolvency (2007)
• Law on Secured Transactions (2007)

Function of Each Law:

Law on commercial Rules and Registers determines the general rules for doing business and merchants’ obligations for registration their business that the Ministry of Commerce. It is also determining what the commercial activity is, who a merchant is, how to resolve the commercial disputes, etc.

Law on Commercial Enterprises applies to classify the types of the company carrying on business in Cambodia. It is also provided the rights and obligations to establish, to manager and to run them, and it strongly protects company investors, such as shareholders, stockholders.

Law on Secured Transactions is the law who gives an opportunity to businessman to bring the movable assets to secure with the banks or other creditors in order to increase their capital or to assist their operations in a business.

Law concerning Marks, Trade Name and Acts of Unfair Competition is the law that protects the intellectual property rights registered in creations and using trademark, service mark, trade name (name of business) and doing business in fair competition.

Law on Commercial Arbitration is the law in which defines how to resolve the commercial disputes by commercial arbitration, alternative dispute resolution. It is also gives an opportunity to the government that helps to establish the National Center for improving this area in order to increase foreign investors coming to Cambodia.

Law on Insolvency regulates the traders’ situation while they are failed in doing business and going to bankrupt. In this case, the law points to the court who is only competent to declare a merchant who is insolvent.

Law on Management of Quality and Safety of Products and Services defines the standard of goods that will be used to do business and prevents the bad producers in order to safety consumers and a business community, and

Commercial Code in 1950 was combined from the three law books separately that had been a General Business Book, Bankruptcy and Liquidation Book and Commercial Court Book. According to article 158 (new) of Cambodia Constitution, provisions of the previous laws can apply to enforce until there are the new law previsions instead of them. Therefore, this code is still applying to commercial matters, but it has a little provision can do that because Cambodia now has many laws above governing those affairs.

In summary, to learn and follow up the Commercial Law is the good ways for merchants because they can know its characteristics, its development and its meaning. These will assist their business in Cambodia going better in the future, especially be able to joint in the international community.

By: OUCH VUTTHY, A.L.C.E, LL.B.

Lecturer, Business & Intellectual Property Law

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Reference :

- Norton University Newsletter, September 2010 / January 2011, Page: 65.