What Type of Land Developments Must be Approved by the Competent Authorities?

• 5 August 2020
• Local News
• 7583 Views

The land is a type of immovable property that has great potential in the real estate business and many services in Cambodia, especially in the metropolitan and development areas which have recently been booming.

Land development is defined as an activity of land organisation by changing the type of land use, changing land use functions, integrating parcels, compacting land parcels, changing the structure of the land and/or increasing the density of land use for residential, commercial buildings, service or industry in accordance with legal standards.

To develop or do any business on land, any person or company is required to apply for “Permit of Land Development” from the competent authorities, even if the development project is located in a rural area or far from national roads, railways, tourism resorts or heritage sites. The Ministry of Land Management, Urban Planning and Construction (MLMUPC) has determined the forms of land development requiring a permit as following:

– The conversion of land use for construction projects
– Land development for parcel conversion projects
– Land development project to organise lots
– Land development to change the land structure
– Land development for urban development projects
– Land development to organise the development of a borey or residential building projects
– Land development to organise the development of commercial, service and diverse area projects
– Land development to organise the development of industry, industrial parks and factory area projects
– Land development to organise the development of economic zone projects
– Land development to organise the development of urban infrastructure projects
– Land development to organise the development of tourism area projects
– Land development to organise other development projects.

However, land development in agricultural areas for building family housing, factories in an economic land concession and for handicrafts or factories for agricultural purposes do not require a permit except where specified by law, according to the Prakas No. 087 D.N.S.PRK/ Nik. dated 11 May 2018 on Land Development.

Any person or real estate company must apply for a permit at the MLMUPC for any project with more than 30,000 m2 of land and apply from the governor of the municipality or provincial governor’s board for any project with less than or equal to 30,000 m2 of land. Additionally, for any project with less than or equal to 5,000 m2 of land, the applicant has to apply for a permit from the governor of the municipality, district and Khan if those administrations have a land-use plan already approved.

Notably, after obtaining a permit for land development, the person or company must go on to apply for a license or permit for real estate development business at the Ministry or Department of Economy and Finance to do business legally on those land projects. (Read more)

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