Short answer
Vet a distributor on four things: that the business exists and is properly registered, that it has the storage, logistics and finance to do the job, that principals it already represents will vouch for it, and that its commercial terms fit your plan. Visit the premises, call references and start with a limited trial before you grant exclusivity.
This checklist reflects general commercial practice rather than a legal source. Have your own lawyer review any distribution agreement.
1. Define the role
Write down the territory, channels, product range, volumes and service standards before you meet anyone. A clear brief lets you compare candidates on the same terms and keeps you from adapting your needs to the first distributor you meet.
2. Source from several channels
Use more than one source of candidates, such as trade associations, chambers of commerce, retail and wholesale visits, your existing customers and industry contacts. A list from a single source reflects that source’s relationships, not the market.
3. Verify the business
- Ask for the company’s registration documents and check that the legal name, address and shareholders match what you were told.
- Ask for tax and business licences relevant to your product category, and confirm any product-specific permits.
- Request trade references from principals the distributor already represents, and call them.
- Ask for a bank reference or financial statements to understand payment capacity.
4. Check capacity in person
- Visit the warehouse and offices, and check storage conditions suited to your product.
- Look at the sales team, vehicles and coverage of the territory.
- See how competing or complementary products are displayed and sold.
- Meet the owner and the person who will run your account.
5. Settle the commercial terms
- Territory and whether it is exclusive, and what happens if targets are missed.
- Pricing, margins, payment terms and credit limits.
- Minimum purchases, stock levels and after-sales responsibilities.
- Marketing commitments and use of your brand and intellectual property.
- Term, renewal, termination and what happens to stock on exit.
- Governing law and dispute resolution, agreed with your own counsel.
6. Know what the relationship does to your tax position
Who invoices the customer and who imports the goods changes the tax treatment. A local distributor buying from you is a different transaction from you importing and selling directly, and the customs, VAT and withholding treatment differs. If you are considering a Cambodian entity of your own, the corporate income tax standard rate is 20% with a 1% minimum tax on turnover, and an independent audit is compulsory for a Qualified Investment Project. Work the tax consequences through with licensed Cambodian counsel before signing; see our guide on tax and incentives.
7. Start small
Begin with a limited term, a trial order or non-exclusive rights, and review performance against agreed measures before granting exclusivity or large credit.
Where Invest Cambodia fits
Our distributor matching service runs this process for you: criteria, longlist, verification, shortlist and introductions.
Questions investors ask
Should I give a distributor exclusivity?
Only after you have verified the business and seen performance. A common approach is to start with a limited term or non-exclusive rights and tie exclusivity to agreed targets.
Sources
- Deloitte: Cambodia Tax Highlights 2025
- PwC Worldwide Tax Summaries: Cambodia — Taxes on corporate income (last reviewed 2 April 2026)
General information only, not legal, tax or investment advice. Laws, rules and figures change. Confirm the current position with licensed Cambodian professionals before acting.