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Ease of Doing Business in

Lao PDR

Lao PDR Download Profile (1730.1KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 6,802,023
GNI Per Capita (US$) 1,730
City covered Vientiane

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 139 136 down
3
53.29 52.44 down
0.85
Starting a Business 160 168 up
8
72.42 67.36 up
5.06
Dealing with Construction Permits 47 42 down
5
75.11 75.06 up
0.05
Getting Electricity 155 158 up
3
48.67 45.19 up
3.48
Registering Property 65 64 down
1
68.70 68.70
-
Getting Credit 75 70 down
5
55.00 55.00
-
Protecting Minority Investors 165 166 up
1
35.00 35.00
-
Paying Taxes 146 143 down
3
56.98 57.01 down
0.03
Trading across Borders 120 116 down
4
62.98 62.98
-
Enforcing Contracts 88 86 down
2
58.07 58.07
-
Resolving Insolvency 169 169
-
0.00 0.00
-

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 160

DB 2016 Rank: 168

Change in Rank: up8

DB 2017 DTF (% points): 72.42

DB 2016 DTF (% points): 67.36

Change in DTF (% points): up5.06

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: LAK 0
City: Vientiane
Indicator Lao PDR East Asia & Pacific OECD high income
Procedure – Men (number) info_outline 8.0 7.0 4.8
Time – Men (days) info_outline 67.0 23.9 8.3
Cost – Men (% of income per capita) info_outline 4.6 19.0 3.1
Procedure – Women (number) info_outline 8.0 7.1 4.8
Time – Women (days) info_outline 67.0 23.9 8.3
Cost – Women (% of income per capita) info_outline 4.6 19.0 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 12.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Apply for a Name Reservation Certificate and Enterprise Registration Certificate (ERC)

    Agency: Enterprise Registry Office (ERO), Department of Investment Promotion for General Businesses (IPB), Ministry of Industry and Commerce (MOIC)

    Applicants apply for the name reservation certificate and the enterprise registration certificate at the same time. A completed Application for Reservation of Company Name, listing three potential names for the company to be established, and a signed Contract of Incorporation (if there are multiple shareholders) in the format approved by the MOIC must be submitted to the ERO in order to obtain a Name Reservation Certificate. At the same time, the applicant submits the application for the Enterprise Registration Certificate (ERC), which can be downloaded at the MOIC website. Founders shall complete the application form for the ERC in the MOIC standard application form attaching the following required documents:

    (i) 3 copies of the Contract of Incorporation,
    (ii) 3 original copies of the signed Articles of Association in the MOIC standard template,
    (iii) 3 copies of the resolution of founders of the company,
    (iv) 3 copies of the Power of Attorney in the MOIC standard template (if another person is assigned to submit the application),
    (v) 3 copies of ID card/passport of founders or business licenses for entities, (vi) 6 photos size 3cmx4cm of the nominated Managing Director.

    When issuing the ERC, the MOIC issues a letter that you have to take to the tax office to register for a Tax ID.

    Cost details:
    LAK 10,000 (name reservation certificate), LAK 10,000 (Incorporation form) + LAK 70,000 (Application form) + LAK 300,000 (Registration service fee)
    14 days LAK 390,000
    2

    Register the Articles of Association

    Agency: State Asset Management Office, Ministry of Finance

    Once the company obtains the Enterprise Registration Certificate, it shall thereafter register its Articles of Association with the State Assets Management Department (SAMD), Ministry of Finance. For registration the following are required: letter request, the original signed Articles of Association, and copy of ERC.
    between 5-10 days
    no charge
    3

    Apply for Tax Registration Certificate

    Agency: Tax Department

    Enterprises operating in the Lao PDR are subject to direct and indirect taxes. You need to submit the following documents:

    1. Application form
    2. Resident certificate of managers
    3. List of assets
    4. List of employees and estimates salaries
    5. Copy of lease agreement
    6. Office location certificate
    7. Map signed and sealed by the village chief
    8. 2 photos 3x4 of the managing directors
    9. Copy of the resolution of formation
    10. Copy of the ERC
    11. Copy of ID cards
    12. Registered AOA

    Cost details:
    LAK 25,000 (Registration form for taxes) + LAK 100,000 (Tax certificate)
    14 days See procedure details
    * 4

    Obtain Approval of Content on the Company Signage and the Company Signage Building Permit

    Agency: Ministry of Information Culture and Turism

    The company must obtain content approval and a building permit. For the content approval application, the company must complete the application form in MICT standard form and provide the following: (i) the name of the company in Lao, enterprise code provided under the enterprise registration certificate, office location and contact detail of the company; (ii) the color in red for the letters, and yellow for the background (these colors applied to domestic companies); and (ii) the size shall not exceed 2mx4m. For the building permit, the company must complete the application form and attach the signage layout indicating the location and size, and copy of the company's licenses.
    between 5 -14 days, simultaneous with previous procedure
    LAK 10,000
    * 5

    Carve a company seal

    Agency: Ministry of Industry and Commerce and Ministry of Public Security

    After the Enterprise Registry Office issued the ERC and a letter for seal carving, entrepreneurs need to submit these documents with the application form at the Seal carving Unit within the Ministry of Industry and Commerce and Ministry of Public Security. Once the seal is carved, a letter for registration the seal is issued by the seal carving unit. Entrepreneurs can submit these to the seal carving unit for the approval of official use.
    Cost details: LAK 10,000 (application form for making the company seal) + LAK 60,000 (the certificate authorizing the design) + LAK 50,000 (carving of a seal in Lao language only) or LAK 53,000 (the carving of a seal in Lao and in another language
    2 weeks (simultaneous with previous procedure) see procedure details
    6

    Register company seal at the provincial department of public security

    Agency: Provincial Department of Public Security

    After the seal is carved, the company needs to register it at the provincial department of public security in order to use it.
    1 to 2 weeks included in procedure 6
    7

    Register the workers for social security

    Agency: Social Security Office

    The application form to register workers for social security insurance is available at the agency in charge of registration. Employees and employers must participate in the compulsory social security regime. They may not enter into mutual agreements to avoid participation in the social security regime. The social security regime for company employees is established on the principle of state-guaranteed insurance. Contributions to the social security regime are paid by both the employers and employees: 5.0% of gross salary is to be contributed for social security by the employer and another 4.5%, by the employee. The maximum ceiling for calculating these contributions is LAK 2, 00,000 (5% and 4.5% of LAK 2,000,000).
    7 days no charge
    * 8

    Register for VAT

    Agency: Tax authority

    As per Article 9 of Law of Value added tax of 26 December 2006, all companies with a turnover higher than 400,000,000 Kip are are subject to value-added tax registration with the tax authority.
    3 weeks (simultaneous with previous procedure) No charge

    * Takes place simultaneously with previous procedure.