For Starting a Business
|1||How many procedures are there for starting a business in Lao PDR? What are they?||The MOIC has put its efforts to coordinate with relevant sectors in improving Indicator 1 on Starting a Business to be compliance with the Order No.02/PM by issuing legislations and implementing several activities in order to reduce red-tapes, time and associated costs in doing business. Currently, it has been reduced from 10 to 3 procedures, time taken in starting a business has been shortened from an average of 174 days to less than 17 days.
Therefore, there are 3 procedures for starting a business that investors shall comply:
1. Obtaining enterprise registration certificate with Tax Identification Numbers (TINs) within 10 working days;
2. Carving and registering a company seal within 5 working days; and
3. Registering the workers for social security within 1-2 working days.
|2||Where or with which sector should an investor, wishing to establish an enterprise, submit application for enterprise registration? At which level? (business activities and level of management)||All business operations in Lao PDR are subject to enterprise registration, except business activities that are not required to apply for enterprise registration as stipulated in the relevant laws and regulations, including seasonal business activities.
* Enterprise registration shall be carried out according to the type of business activities:
1. Business activities outside controlled list, [the investor] shall submit application for enterprise registration with the industry and commerce sector as defined in the Law on Enterprises as follows:
– For business activities not requiring to apply for business operating license, the enterprise registrar would specify such business activity on the back of enterprise registration certificate, and the enterprise is [immediately] allowed to carry out business operation;
– For business activities requiring business operating license, the enterprise registrar would issue an advice letter recommending the enterprise to coordinate with relevant sectors to apply for a business operating license without specifying business activities on the back of the enterprise registration certificate.
2. Business activities under controlled or concession list, [the investor] shall comply with the provisions as specified in the Law on Investment Promotion.
* Place of submission of application for enterprise registration:
1. Central level: (Department of Enterprise Registration and Management) for the establishment of a foreign legal entity branch, state-owned enterprise, partnership, company and individual enterprise with registered capital of five hundred million kip or higher whose business office is located in Vientiane Capital and other provinces where necessary that would subject to special notice in each period.
2. Provincial level: (provincial department of industry and commerce) for state owned-enterprise, partnership, company, except public company and individual enterprise with registered capital of five hundred million kip or higher whose business office is located in Vientiane Capital or respective province.
3. District level: (district office of industry and commerce) for cooperatives and individual enterprises with registered capital below five hundred million kip whose business office or business premise is located in respective district or city.
|3||How much is the registered capital? What documents, procedures, time and fees for the issuance of enterprise registration certificate?||1. Registered capital shall be complied with regulations of relevant sector.
2. Documents required for enterprise registration:
* Documents required for registration of individual enterprise:
– Application form for registration of individual enterprise;
– A list of proposed business activities.
* Documents required for registration of partnership or company:
– Application form for registration of partnership or company;
– A list of proposed business activities;
– Agreement on enterprise establishment, except sole limited company.
In case of legal entity applies for enterprise registration, there shall be a power of attorney from the parent enterprise.
3. Procedures and time to complete enterprise registration:
– Submit documents to industry and commerce sector;
– After receiving documents, the enterprise registrar shall complete accuracy check of the documents as defined in Article 12, Decision No.0023/MOIC.DERM, dated 9 January 2019 within one hour and issue enterprise registration certificate within ten working days upon receipt of complete and accurate documents.
4. Fees on enterprise registration include 1) fee on the application form and service fee for issuing enterprise registration certificate depending on the form of enterprise; and 2) fee on enterprise registered capital according to the Presidential Ordinance No.003/PR, dated 26 December 2012. (Form and detailed information could be downloaded from www.ned.gov.la)
|4||After receiving enterprise registration certificate, could investor operate business activities immediately? What business activities are required to obtain business operating license?||Within ninety days from the date of registration, relevant enterprise shall apply for business operating license with relevant sector for certain business activity as specified on the advice letter recommending the enterprise that is subject to business operating license, except there is certain business activity already specified on the back of enterprise registration certificate.
Enterprises that have been registered prior to the implementation of Decision on Enterprise Registration No. 0023/MOIC.DERM, dated 09 January 2019 are allowed to continue their normal business operations. Any enterprises that wish to operate additional activity shall directly apply for business operating license with relevant sector.
* Business activities required to obtain business operating license:
– Enterprises under controlled and concession list as defined in Decree No.03/PM, dated 10 January 2019 on Endorsement of List of Controlled and Concession Activities of Lao PDR;
– Business activities outside controlled list that require business operating license from relevant sector.
* Business activities that are allowed to operate immediately after enterprise registration:
– For industry and commerce sector, except the business activities as defined in the Decision No. 0044/MOIC.DERM, dated 18 January 2019 on Endorsement of Industry and Commerce Activities that are required to obtain business operating license, other business activities are allowed to operate immediately.
|5||What documents, procedures and time are needed to complete the issuance of business operating license?||A set of documents for business operating license consists of: 1) Enterprise registration certificate and advice recommendation from the enterprise registrar; and 2) application form for business operating license according to regulations of relevant sector. Investor shall submit complete documents to relevant sector according to procedures and time as specified in the regulations of respective relevant sector.|