Setting up a Limited Liability Company in Laos: A Detailed Guide (2025)

The ASEAN Economic Community is considered a famous and potential investment destination for businesses and corporations around the world. Among them, choosing to establish a limited liability company is the most popular decision of many business owners and foreign companies. In particular, as the economy of Laos is increasingly developing, many small and medium enterprises and Start-up companies in Vietnam have realized the benefits and business potential in this market and planned to establish a company here.

The following article by GLA provides businesses with an overview of establishing a limited liability company in Laos as well as notes on the company establishment process.

1. Overview

Limited Liability Company (LLC) is a popular type of business globally, especially in Southeast Asian countries.

The organizational structure of a limited liability company brings the following specific benefits to business owners:

• The organizational structure of a limited liability company has many similarities with that of a corporation, helping business owners easily control and manage business operations.
• The liability of investors/shareholders is limited depending on the percentage of shares owned.

2. Establishment of a limited liability company in Laos

Limited liability company (LC) is an extremely popular type of business in Laos, especially foreign companies because the business owner has the right to own 100% of the company. 

The process of registering a company in Laos must comply with the Law on Enterprise 2005 and the Investment Promotion Law 2005.

Characteristics of LLC in Laos:

• LCs cannot own shares of their own LC, but are allowed to own shares of other companies or become partners in partnerships.
• There are from 2 to 30 shareholders.
• It is possible to own both common shares and preferred shares with a minimum share value of 2000 LAK.
• The minimum capital required for the company's general business operations is 1 billion LAK (equivalent to 140.000 USD).

Note: A limited liability company in Laos must be registered with the Ministry of Industry and Commerce (MOIC) and be officially allowed to conduct business activities as stated on the Enterprise Registration Certificate (ERC).

• All companies established in Laos are considered taxable entities and are subject to the same profit tax.
• According to the 2011 Decree on the Implementation of the Tax Law, in case an enterprise does not have tax reduction investment incentives, the corporate income tax rate will be 2011%. 

3. Procedures for establishing a limited liability company in Laos

After 10 years of supporting businesses to establish companies abroad, according to GLA, establishing a company in Laos is extremely complicated and very few service companies in Vietnam can support businesses, and currently to establish a company in Laos, businesses need to contact directly with a service company in Laos. 

In case the business does not necessarily need to establish a company in Laos, it can consider popular countries with simple procedures such as:

- Singapore with 17% corporate income tax in addition to tax exemption for the first 3 years of company establishment, process & procedures completed within 2-5 days.

• Tax free countries "British Virgin Island (BVI), Seychelles, Belize" with 0% corporate income tax, process & procedures completed within 5-7 days.

4. How does GLA support businesses opening companies in Laos?

Setting up a company in Laos can bring many business and financial benefits, especially in the technology and services sectors. However, the process and compliance requirements require careful preparation to ensure full compliance with Lao government regulations.

Understanding the steps from registration to post-establishment obligations will help your business get off to a solid start and grow sustainably in Laos.

• Consulting and support for establishing Lao companies.
• Recommend the right company type based on your business model.
• Prepare necessary documents for Lao Enterprises.
• Tax consulting suitable for the type of business activities of enterprises in Laos.
• Support for registration of all types of business licenses in Laos.
• Support opening physical bank accounts, online banking in Laos, etc.
• Prepare financial statements and tax reports in accordance with Lao accounting standards.

5. Frequently asked questions about opening a limited liability company in Laos

Highlights

• Limited Liability Company (LLC) is a popular form in ASEAN, providing the benefits of high control and limited liability to the owner.
• Setting up a limited liability company in Laos requires compliance with the Enterprise Law 2005 and the Investment Promotion Law 2009, with a minimum capital of 1 billion LAK (~US$140.000).
• Businesses need to complete many procedures such as business registration, tax license, seal, and social security before starting operations.
• GLA supports businesses to establish companies in Laos quickly, legally, and operate effectively and sustainably.