The government has reiterated a call for online business owners to properly register their businesses before July 1 to avoid fines, aside from the six categories of e-commerce businesses that are exempt from registration requirements.
Ministry of Commerce undersecretary of state and spokesman Penn Sovicheat stressed that his ministry will start fining online businesses that do not have the proper permits, based on the provisions of the Law on E-commerce.
“We want all businesspeople to understand that business registration is an obligation that must be fulfilled, for our society,” Sovicheat said, explaining that the deadline had been extended twice, with no order issued for an additional extension.
“The Ministry of Commerce has been working closely with the Ministry of Post and Telecommunications to monitor sales activities and use of online networks to do business. So far the ministry has just received over 300 licence applications. Before being able to apply for a licence, businesses must first be registered,” he said.
Mak Chamroeun, co-founder of local business-to-consumer (B2C) e-commerce platform Smile Shop, called for online traders to register their businesses and obtain the relevant licences, to embark on an entrepreneurial journey with standards, and the ability to successfully expand to international markets.
He suggested the commerce ministry offer new online businesses a crucial window of time to grow, develop and gain footing before being required to register and apply for licences.
According to Sovicheat, the six categories of e-commerce businesses exempt from the registration requirements are – firstly, advertisers that do not list prices of, or directly sell goods to services to consumers, and are not subject to a contract.
Secondly are information providers involved in interactions such as negotiations that do not take deposits for their services or directly create sales contracts, such as booking services.
Thirdly are operations of individuals or sole proprietorships with revenue from the sale of goods or services below the lower income threshold of the lowest tax bracket; and fourthly are family-owned, temporary or seasonal businesses, such as those in agriculture.
Fifthly are vendors who sell their own artworks; and sixthly are providers of online private tutoring, training, workshops or similar education services.
