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Laos Corporate Formation

Updated:2018-4-4 14:31:12    Source:www.tannet-group.comViews:281

Laos corporate formation is appealing for investors considering its labor market for production activities and the tax incentives. Laos is a landlocked country in Southeast Asia that offers different business structures for incorporation to foreign investors and multinationals. Laos is considered one of the most difficult countries in the world in which to start a business, due to the time between lodging an application and receiving all your necessary paperwork. However, with Tannet's professionals, we can provide clients with a turnkey services.

Types of Companies in Laos
Laos currently enables foreign ownership (partial or complete) for three business structures.

1. Joint venture (JV)
This type is considered a foreign invested enterprise for which foreign and Laos national investors are required who will share the profits and loss along with managerial duties. This is ideal for companies looking to a local partner and government support.

2. Wholly Foreign Owned Enterprise (WFOE)
This is a limited liability company structure that allows 100% foreign ownership. This structure is suitable for investors or legal entities that want to establish production in Laos with distribution and supply out of the country.

3. Representative Office (RO)
Opening a representative office in Laos is fairly quick and the process is streamlined to allow incorporation within 8 weeks. However it is not preferred by businesses that are looking to establish an offshore company in the country as a means of generating revenue.

Documents Needed for A Limited Company in Laos
1. Articles of Association: this is required in every case.
2. Shareholders’ or Joint Venture Agreement: if there is more than one owner of the company, there needs to be a Shareholders’ or Joint Venture Agreement outlining voting procedures, dispute resolution, responsibility for financial input etc.
3. Lease Agreement: the Limited Company will need to have taken out a lease over premises before lodging the application.
4. Bank Statements showing the financial viability of the investor(s).
5. Personal Details of the investor(s) such as passport copies, passport photos, resumes.
6. Depending on the circumstances of each application, the government may also ask to see the employment contracts of at least key employees.
7. Business Plan: a document outlining the intended business operations, the number of employees, the intended training for Lao employees etc.

Procedure for Corporate Formation in Laos
The process of incorporation in Laos is time consuming compared to other countries in the region.

1. The company must first apply for Name Reservation Certificate from the Enterprise Registry Office and get the Enterprise Registration Certificate from the Ministry of Industry and Commerce.
2. Following this, the company must register Articles of Association with State Asset Management Department of the Ministry of Finance.
3. The company will apply for the Tax Registration Certificate if doing business in Laos.
4. The company must then get content approval by completing the MICT form and the building permit by completing the application form available from the Ministry of Information, Culture and Tourism. 
5. The last step is to register workers with the Social Security Office, which is free of charge.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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