In Laos, the Ministry of Industry and Commerce is where companies are registered (MOIC). After submitting a fully completed application to the Ministry of Industry and Commerce, the typical processing period for company registration in Lao PDR is between two and six weeks (MOIC). Due to the complexity of the Lao legal system and the company incorporation process in the Lao PDR, it may be difficult to complete the process on your own. Upon receiving instructions, the company incorporation procedure typically takes six (6) weeks. If the business is a limited corporation, it must first sign a lease before submitting the registration form. A copy of the investor’s passport, a resume with information about him or her, and bank statements that show the investor is financially stable are also needed.
Business registration procedures in Laos
The following are the steps for registering a business in Laos.
Obtain and prepare corporate papers
The following forms must be filled out and submitted to the Ministry of Industry and Commerce (MOIC) to support an application for company establishment:
- Articles of Association
- board/shareholders’ resolution approving the proposed company establishment (including the proposed company name and registered capital)
- Application form for the ERC
- Power of attorney to choose someone to incorporate the company on your behalf
- Business strategy for Lao PDR (including, if necessary, a translation into Lao)
- contract of incorporation (if there are multiple shareholders)
- resumes of legal representatives and directors
All paperwork must be completed in Lao and following MOIC templates. Each of the aforementioned documents must be submitted with two (2) original copies when applying for an enterprise registration certificate.
Application for a Certificate of Enterprise Registration (ERC)
The ERC is a legal document that attests to the company’s correct registration in Laos. The key details are presented, including the company’s registration number, approved activities, tax identification number, managing director and shareholder names, and more. The managing director of the proposed entity must complete an application for an Enterprise Registration Certificate (ERC), which is a standard MOIC document template outlining the intended business operations, shareholding, and registered capital of the proposed entity.
Operating permit (if required)
Certain commercial endeavors (such as those involving energy and resources) call for operating permits from the relevant government body (i.e., the Ministry of Energy & Mines). Only once the ERC has been issued may a request for an operating license be made. After the enterprise registration certificate has been issued, applying for, and getting industry-specific operating licenses is a separate process from company incorporation and can take anywhere between two and six months, depending on the industry and the responsiveness of the relevant ministry.
Application for tax registration
To receive a Taxpayer Identification Number, the business must apply using a standard government template to the Tax Department of the Ministry of Finance.
Application for company seal
Obtaining a Company Seal Requires Applying Using a Standard Government Template to the Ministry of Public Security.
Depositing in a bank
The Company must create a Lao PDR bank account before a capital importation certificate (explained below) can be issued. The business would conduct all its financial transactions through the bank account.
Capital import authorization document
The Company must apply for a capital importation certificate to the Bank of Lao PDR (BOL) within thirty (30) days following the ERC’s release. Within ninety (90) days of the ERC’s issuance, the Company must import 30% of its registered capital; the remaining 70% must be imported within twelve (12) months of the ERC’s issuance.
After completing the processes, the Company will be completely incorporated and able to run its business.
