Logo of Phnom Penh Post newspaper Phnom Penh Post - Inter-ministerial prakas sets fines for business violations

Inter-ministerial prakas sets fines for business violations

Content image - Phnom Penh Post
An unopened showroom covered with the brand logo of US electric automaker Tesla Inc, along Russian Federation Boulevard in the western Phnom Penh district, across the road from the commerce ministry. Heng Chivoan

Inter-ministerial prakas sets fines for business violations

Businesses found in violation of a list of business and e-commerce laws, and other commercial regulations could be landed with a fine of between 200,000 and 10 million riel ($50 and $2,500), according to an inter-ministerial prakas issued publicly on May 25.

Signed by commerce minister Pan Sorasak and finance minister Aun Pornmoniroth on May 12, the prakas centres on six classes of violations, ostensibly setting fines proportional to the severity of the offence.

“Unregistered adjustments and other changes” at the commerce ministry carry a one million riel fine, while companies failing to file an annual declaration could be slapped with a two million riel penalty, the prakas said.

According to the commerce ministry’s online business registration website: “Failure to file annual declarations for three consecutive years will result in a repeal of the business’s registration and licence to operate in Cambodia.”

The prakas added that providing false information or forged documents required for registration is punishable by a one million riel fine, while conducting unauthorised e-commerce transactions can result in a 10 million riel charge.

Submitting company reports, notes or other documents to the commerce ministry found to contain false information can attract a penalty of two million riel, it said, adding that failure to send copies of financial statements to the commerce ministry will incur a two million riel fine.

Additionally, applications for the re-registration of trademarks, brands and other intellectual property more than six months past expiration will be levied with a 200,000 riel fee, the prakas said, stressing that collected fines and fees will go to the national budget.

Commerce ministry spokesman Pen Sovicheat noted that the prakas generally applies to all individuals – both physical and legal entities.

He told The Post that the prakas “is to facilitate the effective implementation of our administrative measures set by various regulatory documents related to business registration, commercial laws and trademark registration.

“In the past, we have implemented guidance and education through repeated notifications for those who failed to comply.

“Therefore, the prakas allows the ministry to impose fines for any offences related to non-compliance as stated. Trademark [and] intellectual property infringement is already enshrined in all our existing intellectual property laws,” according to Sovicheat.

Last year saw 7,860 new businesses register with the commerce ministry, down by 40.72 per cent from 13,259 in 2019. Sole proprietorships accounted for 2,183 or 27.77 per cent, down by 44.24 per cent from 3,915 in 2019.

At the same time, the ministry dissolved 500 businesses last year, marking a 187 per cent increase from 174 in 2019.

Meanwhile, Phnom Penh municipal Department of Commerce deputy director Ly Kong on May 24 led a team that included Por Sen Chey District Administration officials to inspect an unopened showroom covered with the brand logo of US electric automaker Tesla Inc, along Russian Federation Boulevard in the western Phnom Penh district, across the road from the ministry.

According to Kong, while the team did not chance upon the showroom director, it did meet with representatives, calling on them to register the Tesla trademark and car brand at the commerce ministry, and to apply for a trademark permit with the Phnom Penh Municipal Administration.

The appeal comes nearly two months after a sizable billboard advertisement for Tesla sprouted up on the showroom, which has sparked a flurry of comments and images on social media fanning rumours surrounding the US electric car giant’s presence in the Kingdom.

Kong told The Post: “We merely went to keep track of things and directed them to follow the law. We haven’t seen an outcome yet, but we’ll have to wait and see after one or two more inspections.”


  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration