Deadline for online business registration now extended to July
Uncertainty over trading conditions and the impact of the spread of Covid-19 prompted the Department of Commerce to delay issuing fines until July for online business owners who delay applying for permits or e-commerce licenses.
The ministry announced last week that the postponement of fines for late filing of applications for e-commerce authorizations and licenses, originally due March 1, has now been extended until July 1.
“At the request of traders, sole proprietorships and corporations, coupled with the re-emergence of the new outbreak of Covid-19 variant of Omicron in the community, the Ministry of Commerce has decided to extend the deadline until July 1, 2022 to allow enough time for them to apply for permissions and licenses,” the ministry said.
He, however, pointed out that companies conducting e-commerce operations without permission would still be subject to fines and penalties, as provided for under the e-commerce law system.
The ministry added that to legally conduct e-commerce operations in Cambodia, all foreign business owners, sole proprietors, legal persons and affiliated companies must apply for a permit or license according to standard procedures.
Hong Vanak, director of international economics at the Royal Academy of Cambodia, told The Post that advances in technology, especially amid the spread of Covid-19, have led to rapid growth in e-commerce across the country. around the world – including in the Kingdom.
However, he noted that the rapid pace of development in the industry means that legislation and regulations devised by the authorities “have not been 100% effective”.
Requiring all e-commerce owners to register and apply for licenses with the ministry would build trust among stakeholders, including authorities, business partners and customers, Vanak added.
“The decision to issue this extension was made because the Department of Commerce wants all e-commerce owners to be prepared [for this change]. Have the right record [or e-commerce] license will also provide trust and legitimacy,” he said.
Sam Sokha, a seller who sells car styling accessories online, said he had been aware of the requirement to register with the Department of Commerce for “about six months”.
But he admitted he was not ready to register his business because, once listed, the state will demand payment of various taxes on it – despite its low sales and rarely replenished site.
Sokha said that if he had to pay more taxes, the price of his goods would have to be increased. “Now that there are more sellers, if my price is higher, who would buy them? »
He added that he will take a “wait and see” approach – observing how others in similar businesses react to the registration of permissions or licenses in the coming months – before proceeding.
This will be the third time the Department of Commerce has decided to grant a reprieve to all e-commerce business owners. Previously, he had set the deadlines for December 1, 2021 and March 1.