In Brief

The NGO shall be operating their office in comply with those legislation:

  1. 1) Prime Minister’s Decree on International Non-Government Organization (NGO) No.013pm, dated 8 January 2010.
  2. 2 ) Instructions on The Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015.
  3. 3 ) Guidebook of Ministry of Foreign Affair of Laos, For NGOs, updated on 18 September 2020.

Key Takeaways

  • A. A. The legal steps and procedures required to establish an NGO in Laos:
  • 1). Apply for Operation Permit (OP) at Ministry of Foreign Affair1
  • NGO to be approved to operate in Lao PDR must meet the following conditions:
    • · have the status of a legal entity, properly registered according to the laws of the country of origin;
    • · be an international non-profit organization;
    • · have clear constitution or rules;
    • · have a good financial standing and legal source of funds;

1Article 5 – No. 5.5. – Prime Minister’s Decree on International Non-Government Organization No.013pm dated 8 January 2010; and No. 4 – No 4.1. – Instructions on the Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015.

    • · aims to help Lao PDR in development and humanitarian aspects2.

  • 2) Work Permits and Business Visas for Foreign Staff 3

    • · After receiving the Operation Permit, the NGO must apply for a work permit for its employees to enter Lao PDR in order to prepare documents and memorandum of understanding together with the Ministry of relevant sectors that will be partners in the implementation of the project.
    • · Can be obtained at all embassies and consulates of Lao PDR located abroad or can be obtained at international checkpoints
    • · Visa B2;  4 Validly 90 days and it is renewable5;

  • 3) Project Approval6

    • · Draft Memorandum of Understanding (MOU) and MOU negotiations with the Relevant Ministry and MOU Signing Ceremony)7
    • · The Projects of INGO that will be approved to operate in Lao PDR must meet the following conditions:

2Article 6 – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

3No. 4 – No 4.2. – Instructions on the Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064. Dated 17 February 2015.

4No. 15 – Instructions on The Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015.

5No. 4 – No 4.3. – Instructions on The Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015.

6No. 4 – No 4.4. – Instructions on The Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015; and Article 5 – No. 5.2. – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

7No. 6 – No 6.3. – Instructions on The Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015.

      • i. Have been approved for operation permit (OP);
      • ii. The project must be in line with the program and priority focus allowed by the government;
      • iii. The project must have clear goals, activities and be consistent with the development strategy of the Lao PDR;
      • iv. The project must be appropriate in terms of budget;
      • v. The project must clearly define the duties of the relevant parties of the state and international organizations that do not belong to the government;
      • vi. The project must define in detail the activities to be done and raise the budget for each activity appropriately;
      • vii. Most of the budget of the project must focus on the activities of the project;
      • viii.The project must have its own management mechanism by organizing a project steering committee and having representatives from relevant parties and representatives from non-governmental international organizations as members. The project steering committee is responsible for adopting the detailed work plan, actual budget plan and adopting the project implementation report8
  • 4) Apply for Operation Project Office Permit9
    NGO that will be approved to open a project office in Lao PDR must meet the following conditions:

    • · Was approved to carry out the project in Lao PDR;
    • · Have a license to use the premises from the owner of the premises with recognition from the relevant governing body to open an office;

8Article 7 – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

9Article 5 – No. 5.3. – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

    • · The project office must have the same duration as the approved project and must be closed within 30 days after the implementation of the last project. 10
  • 5) Requirements for those who should complete NGO formality and Qualifications needed by the business to get the formality:11
    • · Submit a report of activities to relevant sectors of the Lao side on a regular basis or at least once a year; 12
    • Disclose The financial statement including project implementation reports and financial reports that the organization will send to donors;13
    • Proceed the monitoring, make a summary of accounting and mid-term and end-term evaluation of the project together with relevant sectors of the Lao side;14
    • Submit a report on the results of the implementation of the project after the approved project has ended and hand over the project to the relevant sectors of the Lao side and submit it to the Ministry of Foreign Affairs within 30 days; 15
    • Any organization has paid salary to their staff, they shall file Personal Income Tax (PIT) within the 20th of the following month;16

10Article 8 – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010

11Article 28 Of Ministerial Decision on Tourism Business No. 607/Moict, dated 30 September 2022.

12Article 18 – No. 18.4. – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

13Article 18 – No. 18.5. – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

14Article 18 – No. 18.6. – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

15Article 18 – No. 18.7. – Prime Minister’s Decree on International Non-Government Organization No.013pm, dated 8 January 2010.

16Article 40 – Income Tax Law No .67na Dated 18 June 2019.

  • 6) Time frame:
    The officer takes at least 60 Days to consider MOU and once the officer approve, the parties shall proceed to hold the MOU Signing Ceremony within 30 Days. 17 Any parties shall not implementation any activities of the project prior the memorandum of understanding has sign.
  • 7) Renewal:
    Be valid for 1 year and renewable.

CONCLUSION

At ILAW Laos, we recognize the complexities of NGO regulatory compliance and are dedicated to offering comprehensive legal support to ensure a smooth and efficient process.

Our team is ready to assist you in preparing and submitting all necessary documents in full compliance with legal requirements. We aim to streamline the process and minimize potential challenges. We look forward to helping you achieve business success in Lao PDR.

17No. 4.4.2 and No. 4.5 – Instructions on The Implementation of Prime Minister’s Decree on International Non-Government Organization No. 001064, dated 17 February 2015.