Registration Tips
Memorandum and Articles of Association
The Memorandum and Articles of Association belong to the required
documents to register. This document gives you all the basic details
about how the company works. It is very similar to an organizations
constitution. It contains the objects, powers, and scope of the company:
another way to define it is, it is the ID card of the company. It
defines the relationship between the company itself and its environment.
- Company name
- Purpose of the company
- Share capital
- Organization of the company
- Shareholder meetings
Please ensure each page (both Khmer and English) is signed by all Directors and at the end of the document.
The calculation of the Share Value
Why calculate your share value ?
To register your business as a Limited Liability company, you need to calculate your share value, which is a legal requirement to register your business. The reason for this is to be able to divide the shares between all the owners of the business. Example, one investor might not invest any money but instead put in more time. This person may manage the setup of the business and hence put in 6 months of their time rather than money. The reward for this may be a percentage of the shares (or ownership) in the business. Agreements like this are developed between all of the investors (owners).
How to calculate your share value ?
The two most important points of share valuation are the total amount of capital and the percentage each investor or owner receives. For a private company the actual share value has little importance as it does not change how much of the business each investor owns or how much the total business is worth.
However the share price must be evaluated for legal reasons and the simplest method is:
Capital refers to :
How to interpret the share valuation ?
The amount obtained is the price, on the market, of one share. If you are several associates, depending on how much each of you invested in the business, you proportionally distribute the shares. It determines the ownership (eg. if you own 30% of the share you own 30% of the business). If you decide to sell parts of your enterprise you sell some shares of the business.
To register your business as a Limited Liability company, you need to calculate your share value, which is a legal requirement to register your business. The reason for this is to be able to divide the shares between all the owners of the business. Example, one investor might not invest any money but instead put in more time. This person may manage the setup of the business and hence put in 6 months of their time rather than money. The reward for this may be a percentage of the shares (or ownership) in the business. Agreements like this are developed between all of the investors (owners).
How to calculate your share value ?
The two most important points of share valuation are the total amount of capital and the percentage each investor or owner receives. For a private company the actual share value has little importance as it does not change how much of the business each investor owns or how much the total business is worth.
However the share price must be evaluated for legal reasons and the simplest method is:
- first, to evaluate the capital of your enterprise
- second, divide the capital by 1000.
- Evaluate the capital of your enterprise – $6000 USD
- Divide the capital by 1000 – $6000/1000 = $6 per share price.
- Each owner receives 500 shares @ $6 per share, or more importantly, each investor owns 50% of the business.
Capital refers to :
- financial resources: cash and funds held in deposit accounts
- tangible machinery, production equipment, and all types of manufacturing facilities
- buildings needed for the storage, production, and distribution owned by the enterprise
- all the material used and consumed as part of the manufacturing process
How to interpret the share valuation ?
The amount obtained is the price, on the market, of one share. If you are several associates, depending on how much each of you invested in the business, you proportionally distribute the shares. It determines the ownership (eg. if you own 30% of the share you own 30% of the business). If you decide to sell parts of your enterprise you sell some shares of the business.
Opening a Bank Account
How to open a business bank account?
You can apply to open an account through any bank account
Required documents for a business account
The bank offers many types of products and services. The bank gives you access to internet banking for an easy day-to-day use of your account. The account you are required to use is a deposit account. Among the deposit category, there are two types that we may recommend. Both of them will be recognized by the related Ministries for your registration process.
Opening a current account
Opening a current account requires a deposit of $1000. Moreover, your balance should always be over $500, which means you can not allow yourself to go under this limit. The advantage of the current account is that you can receive a check book, which is not the case with a savings account.
Opening a savings account
The savings account is recommended if you don’t have a lot of funds. The minimum deposit to open this type of account is $10, and the minimum balance is $10 as well.
You can apply to open an account through any bank account
- Name, phone number, email, address
- Upload your ID card
- Choose the type of account you want to open
- Which currency you want to choose (US dollars are recommended)
Required documents for a business account
- Memorandum or articles of association
- Business registration certificate
- Identification card/passport of account owner
- Authorized Letter of functioning
- Identification card/passport of member or board of directors
- Proxy letter or resolution of board of directors
- Other valid documents
The bank offers many types of products and services. The bank gives you access to internet banking for an easy day-to-day use of your account. The account you are required to use is a deposit account. Among the deposit category, there are two types that we may recommend. Both of them will be recognized by the related Ministries for your registration process.
Opening a current account
Opening a current account requires a deposit of $1000. Moreover, your balance should always be over $500, which means you can not allow yourself to go under this limit. The advantage of the current account is that you can receive a check book, which is not the case with a savings account.
Opening a savings account
The savings account is recommended if you don’t have a lot of funds. The minimum deposit to open this type of account is $10, and the minimum balance is $10 as well.
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