Dossier & Procedures for setting up a company in Laos
Conditions for investors to establish a business in Laos
- Investors establishing businesses in Laos need to respect and comply with the laws of Laos
- Companies must be established in Laos for industries where company establishment is required by law
- Must meet the conditions for conditional investment sectors according to the laws of Laos
- Must fulfill obligations and comply with foreign currency regulations or foreign currency arrangement commitments
- There must be a decision on permission to invest abroad issued by a competent authority in Vietnam
- Comply with and ensure the implementation of tax obligations under Lao law
Main forms of foreign investment in Laos
- Owning 100% foreign capital: Vietnamese investors can establish a company in Laos and hold 100% of the equity capital contribution ratio to Laos. Except for the business sectors that are required by the law of Laos, also known as the business sectors with conditions on the capital ownership ratio.
- Establishing a business in Laos in the form of a joint venture: Vietnamese investors will enter into a joint venture with businesses or individuals in Laos. The joint venture mechanism and joint venture cooperation rate shall be agreed upon by the two parties, unless otherwise provided for by Lao law.
- Business cooperation contract: Vietnamese investors sign business cooperation agreements with investors who set up companies in Laos. The contents and agreements in the contract need to comply with the laws of both countries.
Company profile for investment in Laos
- A written request for investment registration to establish a company in Laos.
- Explanatory documents for conditional business sectors
- Written commitment to self-arrange foreign currency
- Written confirmation of tax payment obligation
- Documents proving the location of the project
- Company’s charter
- Demonstrate financial
- Other documents: Investor curriculum vitae, Passport (notarized copy, consular legalization), Copy of identity card or citizen identification, Criminal record in case of domestic investor, Photo 3 ×4 of the person who will become the manager or representative at the Lao company.
Procedures for setting up a company in Laos
The incorporation of a company in Laos is directly regulated by the legal corridors of both countries. Investors, when choosing an investment country, need to know, understand and comply with the legal requirements on investment. For investment activities in Laos that need to be established in Laos, the following steps should be followed:
- Apply for approval of outward investment registration, specifically investment in Laos at the Ministry of Planning and Investment
- Comply with the escrow deposit in accordance with the laws of Laos
- Preparing documents to establish a business in Laos
- Submit the application to establish a company in Laos at the Department of Inland Trade, Business Registration Office – Ministry of Industry and Trade (MOIC) to be able to invest in Laos.
- Apply for a tax registration certificate.
- Apply for the company’s representative seal.
Note: After receiving the application for registration of a business establishment in Laos, the business registration authority must consider whether the registered business type is on the Restricted List.
- In case the business activities are not on the control list, the business registration certificate will be issued within 10 working days.
- In case the business activity is on the control list, there will be a request for guidance from the relevant Ministry/Department within 10 working days. After that, the business registration certificate will be issued within 3 working days.
Priority industries to attract investment to Laos
- Establishing a scientific research center using modern and high technology;
- Production of clean agriculture, production of plant varieties and animal breeds
- Agricultural product processing industry.
- Encourage investment in establishing companies in Laos to develop the natural, cultural and historical tourism industry
- Education and skills improvement industry
- Medical industry, construction of modern hospitals, factories for the production of drugs and medical equipment.
- Encourage investment in setting up businesses in Laos, developing infrastructure for freight services and connecting countries;
- Encourage policy banks and microfinance institutes to solve poverty reduction problems for people and communities who have never had access to banks;
- Development of a modern supermarket center.
Siglaw’s special support for Vietnamese investors to set up companies in Laos
With a team of lawyers with many years of experience in the field of offshore investment consulting, especially supporting Vietnamese investors who want to invest in setting up companies in Laos, the lawyers, experts of Siglaw have directly advised, supported and successfully helped establish many types of businesses in many different investment models to this market.
Siglaw’s lawyers have directly cooperated, have close relationships with lawyers and the Vientiane Bar Association, have shared experiences, knowledge and professional support in recent years to better promote the support process for domestic and foreign investors. Investing in setting up a company in Laos, Vietnamese investors will be advised by Siglaw’s team of experts to enjoy preferential tax exemptions, import duties, and 0% value-added tax when importing necessary equipment and materials to serve the production that cannot be met in Laos on the spot.
Siglaw’s lawyers will closely support investors in the following activities:
- Consulting, answering to customers the provisions of the current law related to investment from Vietnam to Laos.
- Consulting and analyzing investment forms in Laos for customers to choose the right form for their needs.
- Consulting advantages, legal incentives of each form of investment to establish a company in Laos for customers to make appropriate choices.
- Advising on advantages and legal incentives for areas, industries and business lines to be invested.
- Guide investors to set up businesses in Laos to prepare financial statements, financial documents and other relevant legal documents.
- Guidance on drafting and preparing necessary documents and documents for investment from Vietnam to Laos.
- To guide the submission and monitoring of the processing of dossiers by competent state agencies.
- Consulting work and explaining the requirements of competent state agencies.
- Consulting on operational issues, relevant annual reports.
- Preferential policies customers receive when registering for Investment Consulting from Vietnam to Laos of Siglaw
- Free consultation on contracts, regulations on enterprise law, Vietnam’s offshore investment law and Laos’ investment and enterprise law.
- Free consultation on matters related to recruitment, use of foreign workers, residence of foreigners in accordance with Lao law.
If you have any problems or difficulties related to documents and procedures for setting up a company in Laos, please contact Siglaw for the most specific and accurate advice.
Phone: (+84) 961 366 238
Email:
- vphn@siglaw.com.vn
- vphcm@siglaw.com.vn
Headquarters: No.44/A32, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi.
Southern branch: 6G4 Tran Nao Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
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