Doing Business in India VS Cambodia – A Comparison
Entrepreneurs and investors often face the challenge of choosing the right destination for their business ventures. Both India and Cambodia offer unique opportunities, making the decision even more complex. While India is known for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Cambodia stands out with its economic openness and investor-friendly policies. This article provides a comprehensive comparison to help you make an informed decision.
Key Comparison Points
Business Environment
- India: India boasts a stable political environment with a robust legal framework and increasing government support for startups and foreign investments.
- Cambodia: Cambodia offers a pro-business government with fewer regulations, making it easier for foreign investors to enter the market.
Taxation
- India: Corporate tax rates in India are 22% (15% for new manufacturing companies), with attractive tax incentives for startups and specific sectors.
- Cambodia: Cambodia’s corporate tax rate is 20%, and it provides tax holidays and exemptions for businesses in priority sectors.
Ease of Company Incorporation
- India: India has a streamlined incorporation process supported by digital infrastructure and an improving regulatory environment.
- Cambodia: Cambodia offers a relatively simple company incorporation process with minimal bureaucratic hurdles.
Cost of Living and Business Operations
- India: India is cost-effective for small businesses, with affordable office spaces and lower living expenses compared to many other countries.
- Cambodia: Cambodia also offers low operational costs, making it an attractive destination for cost-conscious entrepreneurs.
Access to Markets
- India: India has strong global connectivity and trade agreements, providing businesses with access to a massive domestic and international market.
- Cambodia: Cambodia benefits from its membership in ASEAN and trade agreements with key global markets, enhancing its export potential.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
India |
Cambodia |
Business Environment |
Stable political environment, robust legal framework |
Pro-business government, fewer regulations |
Corporate Tax Rate |
22% (15% for new manufacturing companies) |
20% |
Capital Gains Tax |
Applicable with varying rates depending on the asset |
Applicable with exemptions for some sectors |
Ease of Incorporation |
Streamlined with digital infrastructure |
Simple and minimal bureaucratic hurdles |
Business Costs |
Low operational costs, affordable office spaces |
Low operational costs |
Market Access |
Strong global connectivity, trade agreements |
ASEAN membership, export-friendly policies |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or Cambodia, partnering with a reliable corporate service provider like 3E Accounting can make all the difference. With expertise in starting a business in India, a step-by-step guide to India company registration, and India company incorporation, 3E Accounting ensures a seamless setup process tailored to your needs. For company setup or any other assistance, feel free to contact us. Choose 3E Accounting for a hassle-free experience and focus on growing your business with confidence.
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Frequently Asked Questions
India offers a stable political environment, robust legal framework, and lower operational costs. Learn more about starting a business in India.
Incorporating a company in India ensures legal protection and access to global markets. Explore more about India company incorporation.
3E Accounting is a leading corporate service provider in India, offering tailored solutions for entrepreneurs and investors.
From company incorporation to tax compliance, our services cover all aspects of business setup.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.