Legal Update: Monetary Penalties under the Jurisdiction of the Ministry of Commerce
Issue: No. 023P/21 – 02 June 2021
In general, any company that fails to comply with the obligation imposed by Ministry of Commerce will get penalties.
Recently, the Ministry of Economy and Finance and the Ministry of Commerce has issued a Joint Prakas No. 316 dated 12 May 2021, which provide a list of penalty to be imposed on any person violating the provision of Law on Commercial Rules and Commercial Register, Law Concerning Marks, Trade Names and Acts of Unfair Competition, Law on Commercial Enterprises, and Law on E-Commerce. The penalty will be applicable from 26 May 2021 and will be collected by the Ministry of Commerce.
This Joint Prakas has mentioned a list of offense types and penalties amount as follows:
| No | Type of violate | Amount of Penalty (Riels) |
| 1. | Unregister any modification and other changes at the Ministry of Commerce | 1,000,000 |
| 2. | Failure to submit the annual declaration of commercial enterprise | 2,000,000 |
| 3. | Providing counterfeit information and fraudulent documents for registration | 1,000,000 |
| 4. | Unauthorized e-commerce transactions | 10,000,000 |
| 5. | Providing counterfeit information on the report, minute of meeting, or other documents of the company to be kept at the Ministry of Commerce | 2,000,000 |
| 6. | Failure to transmit the copy of the financial statement to keep at Ministry of Commerce | 2,000,000 |
| 7. | Renewal of a trademark registration later than six months period | 200,000 |
We hope that the above legal update is helpful for your investment and help you to invest more confidently.
Disclaimer
The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:
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SON Sokeng,
Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870
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Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX). |
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NOEUM Sokvichhai,
Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785
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Atty. Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company. |
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