Starting a Business · Laos
Starting a business in Laos: foreigner's guide (2026)
Laos shaded by its starting a business status
Laos generally permits 100% foreign-owned companies across most sectors under the Investment Promotion Law No. 62/NA (2024), with enterprise registration handled by the MOIC's Enterprise Registry Office and typically completed within 10 working days. However, a Controlled Business List restricts or conditions foreign participation in sectors sensitive to national security, public order, culture, and the environment, and sector-specific operating licenses add substantially to the overall timeline. The one-stop shop system is an acknowledged improvement but remains incomplete in practice, with most foreign investors relying on local legal counsel.
Key points
100% foreign ownership is permitted as a general principle under Lao law; neither the Law on Enterprise nor the Investment Promotion Law No. 62/NA contains a blanket prohibition. However, a Controlled Business List imposes prior-screening requirements and may mandate Lao national partnership in sectors touching national security, public order, cultural traditions, or environmental impact.
The core process involves: (1) business name reservation with MOIC; (2) obtaining the Enterprise Registration Certificate (ERC) and Tax Identification Number jointly from DERM — issued within 10 working days of a complete application; (3) obtaining a sector-specific operating license (1–2 additional months); and (4) VAT registration with the Tax Department. Basic registration takes 2–6 weeks; industry licenses can extend this by up to 6 months.
The 2024 Investment Promotion Law updated registered capital requirements. Historically, foreign investors in general business needed at least 1 billion Lao Kip (~USD 46,000); Tilleke & Gibbins reported that blanket minimum registered capital requirements were abolished for foreign investors under recent amendments, though sector-specific thresholds remain (e.g., wholesale/retail requires foreign investor capital above 4 billion Lao Kip). To qualify for investment incentives, a project must have capital of at least 200 million Lao Kip or employ at least 30 skilled Lao nationals.
Foreign investors may form a Limited Liability Company (LLC, most common for SMEs), a Public Limited Company (PLC, requires at least 7 shareholders and 3 directors), or register a Representative Office (no commercial activity permitted). LLCs are the standard vehicle for foreign market entry.
Effective July 2025, the Ministry of Planning and Investment (MPI) merged into the Ministry of Finance, which now assumes all MPI duties including oversight of concession investments and investment promotion. Investors in Special Economic Zones (SEZs) continue to use dedicated one-stop service offices within those zones.
The US State Department's 2025 Investment Climate Statement notes that while the one-stop shop system is an improvement, most investors describe it as incomplete, with several steps still required outside the single window; the majority of foreign investors hire local law firms or consultancies to navigate the process. Laos ranked 154th out of 190 in the World Bank's last Ease of Doing Business index (2020).
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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →