Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Ministry of Industry and Commerce 

Permanent Secretariat Office   No. 0115/PSO.ERMD

Vientiane Capital, 29 January 2020

Notification

On a business start-up procedures

 

To: Domestic and International investors who want to start business in Lao PDR

Subject: A business start-up procedures

 

  • Pursuant to the Prime Minister Order on Improvement of Regulations and Coordination Mechanism of Doing Business in the Lao PDR No 02/PM, dated 1 February 2018.

 

             Ministry of Industry and Commerce on behalf of focal point in coordinating with the line agencies in order to facilitate, reduce time and unnecessary cost to be uniform across the country in terms of business start-up. These ministries are involving such as Ministry of Finance, Ministry of Public Security, Ministry of Information, Culture and Tourism and Ministry of Labor and Social Welfare.   

            On the basic such improvement, Permanent Secretariat Office, Ministry of Industry and Commerce’s notified to all internal and international investors whose aims to business start-up in Laos to acknowledge on the adjustment and basic steps in order to ensure the facilities on the coordination mechanism as following:

 

  1. A business start-up is a process that involves only registrations of individuals or legal entities which does not include investment or business licenses from line agencies.
  2. The improvement procedures are as following:
  • The office/branches certificate forms will be eliminated in accordance with Notification No. 1596/DERM.MOIC, dated 15 November 2018, either registration of enterprises in the service sector of the banking sector;
  • The registration of the Companies Act is postponed in the next step after the business has been operated in accordance with Notification No. 1618/MOF, dated 30 May 2019;
  • The taxpayer identification number (TIN) will be provided together with the enterprise license in accordance with Notification on the Officially Launch of Tax Revenue Information System (TaxRIS), No.5489/TD, dated 17 October 2018;
  • The orientation and delivery of the taxpayer identification number (TIN) is postponed to the next step after the business has been operated, accordance with Notification on the Officially Launch of Tax Revenue Information System (TaxRIS), No. 5489/TD, dated 17 October 2018 and Notification 0489/PSO.MOF, dated 05 March 2019;
  • Registration of VAT has been canceled in accordance with Notification 2720/PSO.MOF, dated 12 November 2019;
  • Seal registration is incorporated into the sealing procedure in accordance with Decree on the decision on management and produce sealing, No.1784/MoPS, dated 02 October 2018 and Notification No.2140/ PSO.DERM, dated 03 October 2019;
  • Enterprise’s license plate has been canceled in accordance to the Notification Post on label the enterprise improvement, No. 49/PSO, dated 10 March 2019 of the Notification No. 2823/ MOIC.DERM, dated 26 November 2018.
  1. There are only 3 basic steps as to starting a business as following:
  • Step 1: Registration for the establishment of the enterprise shall take no more than 10 business days in accordance with Decree No.0023/MOIC.DERM, dated 09 January 2019;
  • Step 2: Sealing and requesting seal permission shall take no more than 5 business days in accordance with Decree No.1784/MoPS, dated 02 October 2018;
  • Step 3: Social Security registration will take no more than 2 business days according to the Instruction No.1206/MoLAS, dated 23 April 2019; 
  • Step 4: To business start-up have to follow the relevant regulations in 3 basic steps above mentioned. In case, individuals or some sectors have request more requirements for investors as mentioned in point number 2 of this notification. Investors must be inform to management and registration sector for coordinate with line agencies or report to the Ministry level for finding solutions.

Therefore, this must be informed and strictly implemented.

 

                                                                                                                                       Head of Permanent Secretariat Office

                                                (Signed and sealed)       

                                          Ms. Bannesaty Thephavong

 

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