Lao PDR

Ease of Doing Business in

Lao PDR

This page summarizes Doing Business 2014 data for Lao PDR. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region East Asia & Pacific
Income Category Lower middle income
Population 6,645,827
GNI Per Capita (US$) 1,260
City covered Vientiane
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
159 163 down 4

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
49.84 49.21 down 0.63
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 85 DB 2013 Rank*** 82 Change in Rank down-3
DB 2014 DTF** (% points) 70.29 DB 2013 DTF** (% points) 70.24 Change in DTF** (% points) up0.05

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Lao PDR East Asia & Pacific OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
6 7 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
92.0 37.8 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
6.7 29.8 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in Min. Capital (% of income per capita)
0.0 293.3 10.4
No. Procedure Time to Complete Associated Costs
1 Apply for a Name Reservation Certificate 1 day LAK 10,000
2 Apply for an Enterprise Registration Certificate and apply for tax registration certificate 1 week for compamy registration and 2 weeks for tax registration See procedure details
3 Apply for an Operating License from relevant Ministry 2-3 weeks LAK 50,000
* 4 Obtain Approval of Content on the Company Signage and the Company Signage Building Permit 5 days (simultaneous with previous procedure) LAK 10,000
5 Carve a company seal 45 days LAK 120,000 for Lao language and LAK 123,000 for Lao and other languages
6 Register the workers for social security 7 days no charge
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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