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Laos Business Incorporation Types

Updated:2018-3-21 18:33:34    Source:www.tannet-group.comViews:235

Laos business incorporation type is one of the first things that investors should take into consideration. For investors who are new to Laos, finding out what company structures are possible and suitable for your investment can be very confusing. In brief, there are two options for your investment under Lao law: establishing a Representative Office or establishing a Limited Company.

I. Representative Office
A Representative Office represents a legal entity registered in another country, where that foreign entity wants to have a formal, recognized presence in Laos to collect data on investment opportunities and/or ensure coordination between the relevant Ministries of the Lao government with the head office of the company overseas.

A Representative Office may undertake the following activities:
1. Collect data and conduct feasibility studies for potential investment;
2. Be the focal point within Laos for the head office of the company;
3. Monitor the implementation of any MOU or agreement between the head office and the Lao government;
4. If the Representative Office has signed a Memorandum of Understanding or agreement with the Lao government it may enjoy tax incentives for importing equipment in the form of machinery and vehicles for the specific purposes as stipulated in the MOU or agreement.

II. Limited Company
The Limited Company is the company structure that is used by almost all foreign direct investment in Laos, whether the Limited Company is 100% foreign owned or has a Lao partner. Lao law provides the following rights and benefits to foreign investors:

1. To receive protection for their investment under Lao laws, including in Lao courts.
2. Multiple entry business visas for investors and their families, linked to the investment.
3. To receive protection of their intellectual property under Lao laws.
4. To repatriate profits, capital and other income after the full payment of duties, taxes and other fees in accordance with Lao laws.
5. To open Kip accounts and foreign currency accounts with banks located in Laos.

Certificates and Licenses Granted by the Government on Registration
When a Limited Company is registered, the various Government Ministries and Departments will provide the following documents:

1. Enterprise Registration Certificate (this includes your investment and tax approvals);
2. Tax Identification Number (TIN);
3. Company Stamp;
4. An industry specific licence granted by the relevant ministry - this will depend on the nature of the business being registered.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to 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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