The government last week unveiled a pilot project that will transfer more power to the Battambang and Siem Reap district councils, allowing them to directly approve new businesses in their region.
The project aims to provide a streamlined “one-window” approval system for those wanting to create new businesses, instead of requiring investors to seek authorization from several different governmental departments, Sum Manit, secretary of state for the Council of Ministers and acting secretary-general of the Council of Administrative Reform, said Thursday.
“One-window service would bring about significant benefits such as reducing corruption, increasing credibility to the government by the general public, and particularly by domestic and foreign investors,” he said.
Currently, investors wanting to start a business in Cambodia must apply for authorization from provincial offices, the Ministry of Interior, the Council for the Development of Cambodia and several other administrative bodies.
Under the pilot plan, investors would send only one application to the district council, which would directly contact the appropriate ministry.
For example, if the application involved the start-up of a new hotel, the district council would work directly with the Ministry of Tourism to investigate it.
The “one-window service” would also allow the district councils to grant investors vehicle licenses, land titles and construction permits.
The process would save money and time for small- and medium-sized business registrations, taking about three days instead of the current 14-day waiting period for approval, Sum Manit said.
He said the project is expected to begin in October, but the government, which is initiating the project, has not yet secured funding for it and the costs involved have not been determined.
Some of the costs will be covered by the European Union and Germany’s Konrad-Adenauer Foundation, said the foundation’s representative, Peter Koeppinger.
Initially the project will be limited to Battambang district and Siem Reap district and could later expand, Sum Manit said.
Not everything will be under the jurisdiction of the district councils, however, said Pa Socheatevong, the second deputy governor of Battambang. Some licenses and approvals must still be sought from the provincial or national level, he added.
Pa Socheatevong warned that district council officials will have to work harder and learn more skills quickly so they can successfully carry out the project.
