Ministry of Economy and Finance (“MEF”) issued Prakas No. 089 SHV on 20 January 2020 on Management of Real Estate Development Business (“Prakas No. 089”)

Objective and scope

The objective of the Prakas is to define mechanisms, rules and procedures of management and control of real estate development business in the Kingdom of Cambodia. This Prakas is applicable to all the relevant activities of real estate development business in the Kingdom of Cambodia.

Authorized institutions

The Ministry of Economy and Finance is responsible for the management and control of a real estate development business.

The Ministry has a Department of Real Estate Business and Pawnshop, of the General Department of Financial Industry, as a general staff to perform its functions and duties.

The Capital/Provincial Department of Economy and Finance is in charge of coordinating and supporting the management and control of real estate development business at a capital/ provincial level as a general staff of the General Department of Financial Industry of the Ministry of Economy and Finance.

Business operations and license

Operations

• All the operations of real estate development business for the purpose of sale or long-term lease must hold a license issued by the Ministry or a business permit issued by a Capital/Provincial Department in advance.
• The business of housing development or co-owned building of 04-30 flats or 04-30 villas or 04-30 units, or land parcel development of 10.000 square meters (1 hectare) must hold a business permit issued by a Capital/Provincial Department in advance.
• The business of housing development or co-owned building over 30 flats or 30 villas or 30 units, or land parcel development over 10.000 square meters (1 hectare) must hold a license issued by the Ministry in advance.

License and permits

The licenses of housing development and co-owned building development issued by the Ministry, or the business permits issued by the Capital/Provincial Departments, which are under the provisions of this declaration, are divided into two categories as follows:

• A license and business permit in the category 1 shall be granted to any developer who only makes a sale following a definitive construction project completion;
• A license and business permit in the category 2 shall be granted to any developer who simultaneously undertakes a construction project and makes sales.

A license or business permit shall be granted for the only development location.

In the event that the housing development or co-owned building project is the only one and divided into many phases, the license shall be granted for each phase of such development project.

License and permit fee

The fees for licenses and business permits shall be determined based upon their categories and sizes as follows: