The Processual for Operating the Trading Import and Export Company in Laos
To establish and operate the business in Laos, the local investor will have to register the Business license there is no provisions for the chartered capital. After that local investor will have to get registration of the Taxpayer Identify Number at the Tax Department, they do not have to get the Permit License from the Internal Trade Department.
① Get the Business License
A. Process
The process takes not more than 30 business days from the date of receiving the application. The procedure and time limit for considering the registration of an enterprise shall be as follows:
1) To file a notification to the Department of Industry and Commerce in accordance with the classification considered in Article 9 of the Decision No. 0023/MOIC.DERM
2) Upon receipt of the document, the registrar of the enterprise must check the accuracy of the document as specified in Article 12 of the Decision No. 0023/MOIC.DERM to be completed within one hour and immediately respond to the applicant in each case as follows:
2.1) Documents are complete and correct; the registrar of the enterprise must provide a receipt to the applicant. The receipt of the document must include the date, the date of receipt of the application and the date of the appointment to receive the enterprise registration no later than the official date from the date of receipt of the receipt.
2.2) Incomplete or inaccurate documents, the registrar of the enterprise shall notify the applicant immediately and recommend to correct by pointing out the points that need to be corrected and sign the instructions in the document. After the revision is complete and correct, the application will be in the process as specified above.
B. Mandatory documents
When attending the office to register a business, you should bring three copies of the following documents:
1) A completed business application form for the type of business you wish to register;
2) A photo copy of your Passport or ID card or Family Identity Book;
3) An Investor CV (for foreign investors);
4) A color photo of the Director or Manager of the business (3cm x 4cm size, taken within 3 months of application).
C. Fees
Enterprise registration for Lao people does not specify the amount of chartered capital and the cost of registering a business is dependent on the type of legal entity as follows:
| Legal Entity | Fee (Kip) | Convert to USD |
|---|---|---|
| Individual Enterprise | 40,000 | 4 |
| Sole Company Limited | 80,000 | 9 |
| Ordinary Partnership | 90,000 | 10 |
| Limited Partnership | 90,000 | 10 |
| Company Limited | 90,000 | 10 |
| State Company | 90,000 | 10 |
| Public Company | 90,000 | 10 |
| Mixed Company | 90,000 | 10 |
In addition to the registration fee there is a Capital Registration Fee based on the amount of capital being invested, as per the table below:
| Capital Investment | Fee (Kip) | Convert to USD |
|---|---|---|
| Under 1,000,000 | No charge | No charge |
| More than 1,000,000 – 10,000,000 | 20,000 | 2 |
| More than 10,000,000 – 20,000,000 | 50,000 | 5 |
| More than 20,000,000 – 50,000,000 | 100,000 | 11 |
| More than 50,000,000 – 100,000,000 | 300,000 | 32 |
| More than 100,000,000 – 400,000,000 | 500,000 | 54 |
| More than 400,000,000 – 1,000,000,000 | 1,000,000 | 108 |
| More than 1,000,000,000 – 10,000,000,000 | 2,000,000 | 215 |
| More than 10,000,000,000 – 20,000,000,000 | 3,000,000 | 323 |
| More than 200,000,000,000 | 5,000,000 | 538 |
② Seal
The Seal of the company must be issued by the Ministry of Lao Public Security
A. Procedure time: The officer will give the receipt to the applicant and the process takes 5 business days from the date of receiving the document.
B. Mandatory documents: a copy of Business License
C. Fees: 130,000 Kip (or 14 USD)
③ Get the Register of the Taxpayer Identification Number
When the Business license has issued, the taxpayer identification number will be there and the foreign investor must see the Tax Department.
A. Procedure time: 2 business days
B. Mandatory documents: a copy of all of the document from the Enterprise Registration and Management Department
C. Fees: 20,000 Kip (or 2.14 USD)
The Processual for Distribution Company in Laos for the Foreign Investor
The foreign investor has to get the Business license at the Enterprise Registration and Management Department. Once the business license has issued, the foreign investor must see the Department of Internal Trade to obtain the Permit License. The process for obtain the Permit License are as follows:
A. Procedure time: 7-10 business days
B. Mandatory documents:
1) Submit the Permit License application which provided by the Department of Industry and Handicraft, Department of Internal Trade, Department of Import and Export;
2) A set of the Original or the copy of Business License;
3) A set of the Original or the copy of the application of business license guideline
C. Fees: 100,000 Kip (or 11 USD)
Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
Viphavanh Syharath
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.
