Background
The Accounting and Auditing Regulator (ACAR) contributes technical advice on accounting, auditing and compliance matters and participates in regulatory reviews that affect business governance in Cambodia. A sub‑decree in Cambodia is a delegated regulatory instrument used to detail procedures required by law and to assign responsibilities to ministries and agencies.
The draft under review is titled the “Draft Sub‑Decree on the Classification, Commencement, Operation, and Termination of Business of Small and Medium Enterprises” and addresses the administrative framework for how small and medium enterprises (SMEs) are classified and how they begin, conduct, and formally close business activities. The proposal was discussed at a meeting convened at the Ministry of Economy and Finance on 31 August 2026, with participation from ACAR officials, the Permanent Secretary of State and representatives of relevant ministries and institutions.
Scope of Application
The draft sub‑decree applies to enterprises identified as small and medium enterprises under Cambodian administrative processes and concerns four procedural areas named in the title: classification criteria, commencement of business operations, operational requirements, and termination or closure procedures. The document under review is a draft instrument and has been subject to inter‑agency consultation rather than final promulgation.
Key Provisions or Decisions
Participants at the 31 August 2026 meeting reviewed the draft text that organizes rules into the four headings of classification, commencement, operation and termination. The meeting was chaired by H.E. Dr. Chou Vichith, Permanent Secretary of State of the Ministry of Economy and Finance, and attended by ACAR leadership including Director General Bou Tharin and Mr. Ly Kosal, Director of the Legal Affairs and Compliance Department, together with technical officials and representatives from other ministries.
Implications for Investors, Businesses, or Compliance
If adopted, the sub‑decree would establish formal administrative procedures for SMEs that intersect with registration, compliance reporting and formal closure processes; businesses and advisors should monitor the final text for specific operational obligations and timelines. The draft’s emphasis on classification and commencement procedures suggests that implementation will affect how enterprises are registered and how administrative responsibilities are allocated among agencies.
Official Source
Source: Accounting and Auditing Regulator (ACAR) Facebook post, 31 August 2026. URL: https://www.facebook.com/acarcambodia/posts/pfbid0SvzoTgRZwK1tf7zohk9PS6e27HiL1LHB4xNGUoSQEzv2nbQfj66nTKbkHtwLtHqnl
