Options for registering companies in Laos
As an important member of ASEAN and a country sharing borders with China, Vietnam, Cambodia, Thailand and Myanmar, Laos presents a unique gateway to the rapidly expanding Southeast Asian market.
The country's increasing integration into the regional economy and its strategic position in the Greater Mekong Subregion make it an increasingly attractive jurisdiction for foreign investment, particularly in sectors like energy, tourism and agriculture.
Laos offers international companies the following legal structures for establishing a local presence:
Limited liability company (Limited company)
- The limited liability company is the most common and versatile corporate structure for foreign investors and is generally suitable for all commercial activities outside of concession and special economic zone investments.
- The liability of the shareholders is limited to their capital contribution, protecting their personal assets.
- The LLC typically requires at least one shareholder and one director and the minimum registered capital can vary significantly from US$1 up to higher amounts depending on the industry and the scale of the investment.
Branch office of a foreign company
- The Laotian branch operates as a legal extension of the foreign parent company and therefore does not have a separate legal personality.
- The branch's scope of operations is defined by the parent company's activities and it must obtain an Enterprise Registration Certificate and typically an Operating Licence.
- The foreign head office retains full legal and financial liability for all the Laotian branch's operations. This structure is often used by foreign banks, airlines and financial institutions.
Representative office
- The Laotian representative office is strictly limited to non-profit generating activities such as market research, liaison work and preparation for future investment.
- It is prohibited from conducting commercial activities, signing sales contracts, or generating any income in Laos.
- A minimum capital commitment, often around US$50,000, is typically required for the initial setup and the permitted scope of activity is strictly limited.
Free zone company (Special economic zone - SEZ entity)
- Companies establishing operations within one of Laos's Special Economic Zones (SEZs), such as Savan-Seno or Golden Triangle, benefit from significant incentives.
- These incentives often include corporate profit tax holidays (up to 10 years), exemptions from import duties on raw materials and equipment and simplified administrative processes via a one-stop service mechanism.
- An SEZ Entity must adhere to the specific regulations and procedures set by the respective Zone Administrative Committee and the investment term can be granted for up to 75 years.
To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to set up or expand a business in Laos.
Comparison of the common types of companies in Laos
Information verified against Investment Promotion and Management Committee
Need help deciding?
Choosing the right business structure is crucial. Speak to our Laos business setup experts today and get advice tailored to your plans.
