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General Investment

Investment service in general activities by Industry and Commerce Sector

1. Establishment and registration of enterprise certificate

Establishment and registration of enterprise certificate to operate the business in Lao PDR are under 4 categories, 3 forms and 4 types in line with the Enterprise Law.

 

1.1 Enterprise of 4 categories:

1)      Private Enterprise;

2)      State Enterprise;

3)      Mixed Enterprise;

4)      Cooperative Enterprise;

1.2 Enterprise of 3 forms:

1)      Individual Enterprise;

2)      Partnership;

3)      Company;

1.3 Enterprise and company of 4 types:

A. Enterprise consists of 2 types:

1)      Ordinary Partnership;

2)      Limited Partnership;

B.   Company consists of 2 types:

1)      Sole Limited Company;

2)      Limited Company;

 

2. Enterprise registration and its outcomes

2.1 Enterprise registration

It is the Government legalization of the enterprise registration to both domestic and foreign person,and legal entity in the business operations in Lao PDR.  Enterprise registration is done only one time throughout the business movement time.

2.2 Outcomes of enterprise registration

  1. Make the partnership and the company in the legal entity status which is different from stockholders.  It gives rights, duties, responsibilities in accordance with its objective scope and regulations.

  2. Make the enterprise able to operate the business in accordance with the business activities determined in the enterprise registration certificate.

  3. The content of document files declared in the enterprise registration is open.

  4. It is the registration of enterprise and tax at the same time.

2.3 Businesses for Lao citizens that are not necessarily declared for enterprise registration

-        Production of agriculture and handicraft for family economy by using family members’ labour without hiring non-family member persons.

-        Vendors comprise of: small-scale minimart business operators,peddlers,stall merchants with regular income below 100.000 Kip/day.

-        Small-scale minimart business operators,peddlers,stall merchants with regular income below 100.000 Kip/ day.

-        Seasonal traders or business operators.

(based on the Announcement of Non-Registered Business No. 2037/IC.ERM28/10/214).

 

3. Scope of responsibility in enterprise registration

3.1 Central level (Enterprise Registration and Management Department, MoIC)

  • Services of enterprise registration:

1)      Inspection and approval of enterprise name;

2)      Establishment of foreign enterprise branches (legal entity) in Lao PDR;

3)      Establishment of state-enterprise(approved by the Prime Minister);

4)      Establishment of public company, including the change to the public company;

5)      Type of business or activity that ministries reserve rights to consider before approving the enterprise registration;

6)      Enterprise establishment in businesses:oil import (except for cooking gas) and vehicle import (all engine vehicle types);

 

3.2 Central and municipal levels(provincial and municipal Industry and Commerce Section)

  • Service of enterprise registration

1)      Registration in specific book following up the movement of enterprise branches (legal entity) in the country;

2)      Approve enterprise name;

3)      Establishment of enterprise approved by provinces (Provincial Governor or Major);

4)      Apart from business types determined in 4.3.1 (5 and 6) the provincial and municipal Industry and Commerce Section can register all type of enterprises, enterprise forms and in any domestic and foreign stock ratio;

5)      Enterprise registration at the provincial and municipal Industry and Commerce Section can be done for only the enterprise whose main officer is located in the its locality;

 

3.3 District level (Industry and Commerce Office of District)

It is the provincial, municipal Industry and Commerce Section to consider, in accordance with the actual capability conditions of each district, which to be transferred to Industry and Commerce of district levels to register the enterprise in line with 3-Construction Policy.

         

Decentralization processes at central and local levels

 

Remarks: Scope of rights in considering the enterprise registration between central, local and district levels is different, the details are determined in the notice No. 1618/IC.ERM, dated 28 August 2013.

 

4. Procedure and time frame for enterprise registration

 

5. Complementary documents for enterprise registration.

-        For individual enterprise, the required documents are: 1 set of Application for individual enterprise registration declaration;

-        For (ordinary partnership, limited partnership, company limited, sole company limited, public company, state company and joint venture company) 4 sets of:

1)      Proposal for enterprise name reservation;

2)      Contract for enterprise establishment(except for sole company limited);

3)      Application for enterprise registration;

4)      Regulations of the enterprise;

 

6. Fee for application forms and levies for enterprise registrations.

1)      Application for enterprise registration: 10.000 Kip/set;

2)      Proposal for name reservation: 10.000 Kip/set;

3)      Contract for establishment: 10.000 Kip/set;

4)      Regulations: 30.000 Kip/set;

5)      Fee for printing enterprise registration certificate and fee for the application for individual enterprise registration: 40.000 Kip;

6)      Fee for printing enterprise registration certificate plus the fee for the application for individual enterprise registration: 70.000 Kip;

7)      Fee for photocopying the enterprise registration: 2.000 Kip;

8)      Fee for issuing enterprise registration certificate, based on the enterprise registered fund as determined in  Decree No. 03/President, dated 19 November 2008 (in the annexes).

Remarks:After the enterprise registration, the concerned enterprise must:

-        Make stamp;

-        Follow the procedures of business operations in accordance with the law;

-        Operate the business within 90 days;

-        Transfer funds into Laos (for foreigners) within 90 days;

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Last update: 10 November 2016.