Strategic Success in Cambodia: How Employer of Record Unlocks Seamless Market Entry and Legal Compliance

Developing one’s activity internationally is often an ambitious dream for companies seeking growth. However, establishing oneself in a new country remains a path full of obstacles: administrative formalities, legal constraints, recruitment, tax compliance… so many steps that can slow down — or even jeopardize — an expansion project.

In Cambodia, where economic dynamism attracts a growing number of foreign investors, Employer of Record imposes itself as an agile, safe, and effective solution. This model allows companies to deploy their teams without immediately creating a local legal entity.

A flexible lever for international expansion

Employer of Recordl is based on a clear principle: a third-party company becomes the official employer of the employees deployed in the host country. It assumes all obligations related to employment — payroll management, social coverage, taxation, contracts, visas, and legal compliance — while the client company retains full control over operational management.

This mechanism offers a major strategic advantage: it drastically reduces the risks of non-compliance and accelerates the establishment of a local presence. For foreign companies that want to test a market, recruit international talents, or manage a temporary mission, Employer of Record is an ideal bridge between flexibility and legal security.

Confluences, a key player in le portage salarial in Cambodia

Present in Phnom Penh for nearly a decade,

Confluences has established itself as a trusted partner for companies wishing to establish themselves in the Kingdom. With strong multisectoral experience and local anchoring, the company now supports more than forty organizations — embassies, public institutions, and private companies — eager to secure their operations. "The Employer of Record was essential for SgT in managing its operations in Cambodia. Confluences provided us unwavering support regarding visas, payroll, and compliance," says Asela Udayanga Pathirana, Country Manager of SgT Cambodia, a textile company based in Hong Kong.

"Thanks to their expertise, we operate with full confidence while focusing on our core business: delivering quality solutions to our clients around the world."

This testimony highlights Confluences' central role in professionalizing the local market and facilitating foreign establishments.

A comprehensive offering, from recruitment to compliance

With Confluences, Employer of Record becomes a global solution. Its expertise covers the entire human resources management cycle:

1. Recruitment: identification and selection of local or expatriate profiles via its specialized partner Convergences Executive Search.

2. Compliance: full management of employer obligations, including contracts, tax declarations, and respect for Cambodian labor law.

3. Ongoing management: monthly salary processing, local social protection, and reporting adapted to international standards.

The client company retains direction and evaluation of its teams while benefiting from a stable and transparent operational framework. This model reduces administrative burden while ensuring legal integrity and the company's reputation abroad.

A strategic bridge for investors

In a transforming Cambodian economic environment, Employer of Record stands as a competitiveness tool. It allows combining rapid expansion with strict compliance — a dual requirement that has become essential in the post-pandemic context and facing regional legal developments, notably within the ASEAN space.

More and more European companies, attracted by Cambodia’s sustained growth in the textile, services, energy, and digital sectors, rely on this approach to build hybrid teams, both local and international, while maintaining solid governance.

Focus on what matters: growth

By entrusting Confluences with legal, fiscal, and administrative aspects, leaders can fully focus on their strategic goals: innovation, performance, and business development. This partnership creates a virtuous circle where administrative simplicity nourishes operational efficiency.

Employer of Record is no longer just an alternative to creating a subsidiary — it is a sustainable path for a successful establishment, founded on trust, rigor, and risk mastery.

To learn more about Confluences’ Employer of Record and Employer of Record services, contact Sotheavy Mermillon, Head of the Portage Salarial service:📧 ** | 💬 Telegram : sotheavy.mermillon@confluences.asia