Please note that our offices will be closed 12-15 April 2016 for the Lao New Year.
For any urgent matters during this period, please email enquiries@arionlegal.com
We wish you good health, wealth and prosperity for the 2016 Lao year.
Sok Dee Pi Mai Lao 2016!!!
Laos has only two percent of the population starting a business which is still far too low compared to its 6.4 million people, according to an official.
Head of the Small-Medium Enterprise Promotion and Development Office of Ministry of Industry and Commerce, Mr Sa Siriphong made the comment recently at the launch of Mekong‘s Next Top Mentors Project (MNTMP) in Vientiane.
The country should have 500,000 new start-ups or entrepreneurs to boost its economic and social development by 2020, but entrepreneurs still face difficulties in doing business. According to a World Bank report from last year, Laos moved up seven places in the global rankings on the ease of doing business from 155th to 148th position among 189 economies surveyed.
However, entrepreneurs seeking to invest in the country continue to face significant challenges compared with some regional neighbours. Laos still lags far behind its Asean neighbours in the ease-of-doing-business rankings with Malaysia on 18 and Thailand at 26. For example, to process documents to launch a business, it takes least 74 days in Laos which creates difficulties for start-up businesses.
Mr Sa explained the nation needed more entrepreneurs in the age of Asean integration, and the MNTMP was one way to assist budding business people in Laos. MNTMP is a cooperative effort between Toh Lao Coworking Space, Small-Medium Enterprise Promotion Department, with support from the Lao Businesswomen’s Association.
The project enhances start-up networks to be single markets for investors and allows entrepreneurs to get more insightful information about regional markets. It also helps start-ups to learn how to look for opportunities while preparing to do business.
However, Mr Sa said the government was improving processes and policies to offer more convenience, aiming to attract investors and increase the number of entrepreneurs in the country.
Source: Vientiane Times
[:en]We are proud to announce that Arion Legal has joined together with Baqian and a number of other service providers (inlcuding EQHO Translation) to launch the Lao-Chinese Investment Service Center.
This center brings together professionals operating in key sectors, including legal, tax, accounting, finance, translation, real estate and travel, to provide a full range of investment and business advisory services to Chinese clients looking at, or already operating, in Lao PDR.
Here’s a little press update about the new Lao Chinese Investment Service Center: http://en.apdnews.com/xin-hua/367488.html
Mr Lu Bin, Managing Director of Baqian Law & Consultancy (Lao) and Mr Mike McDonald, Managing Director of Arion Legal (Lao) at the launch of the Lao-Chinese Investment Service Center[:zh]我们很荣幸宣布，Arion Legal律师事务所已经与八谦老挝律师事务所和许多其他服务提供商合作（包括EQHO Translation），成立老挝中国企业投资服务中心。
该中心汇聚了主要行业的专家，包括法律、税务、会计、金融、翻译、房地产和旅游行业，为希望或已经在老挝运营的众多中国客户提供投资和业务咨询服务。
有关老挝-中国投资服务中心的相关新闻，请访问：http://en.apdnews.com/xin-hua/367488.html
八谦老挝律师事务所总经理Lu Bin先生
和Arion Legal（老挝）律师事务所总经理Mike McDonald先生在老挝-中国投资服务中心成立仪式上。[:]
ALO Technology Sole. Co; Ltd is set to become an Information Technology leader in Laos and Asean countries following their official opening yesterday and the signing of an OEM Master License agreement with Microsoft OEM.
ALO is determined to become the number one choice fortechnology products and services, serving the public sector, retail and corporate markets in Laos and Asean, the company confirmed. (more…)
[:en]
Attempting to start a business in Laos can be a little daunting, however there is a basic structure and process to follow. 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, as we can see all around us, companies do get established, and more and more investors are coming here to do business.
One issue that should be kept in mind is that some industries are actually closed to foreign investment, so if you are thinking of starting a business here it is best to find out if you are able to invest in your chosen industry before you spend a great deal of time, money and heartache attempting to do something that you cannot actually do.
Company Structures in Laos
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.
Representative Office
A Representative Office represents a legal entity registered in another country, where that foreign entity wants to have a formal, recognised 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.
The term of a Representative Office is one year and this can be extended twice, giving a total term of three years, unless the head office of the Representative Office has a Memorandum of Understanding (MOU) or agreement signed with the Lao government to investigate and collect specific data for a project for a longer period of time. The term of the Representative Office can then be extended in accordance with the validity of the MOU or agreement signed with the Lao Government.
A Representative Office may undertake the following activities:
A Representative Office does not function in the way that a regular Limited Company can, and in particular is not allowed to conduct the following activities:
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:
Both Representative Office and Limited Company structures have their benefits and advantages, depending on what you intend to achieve in the Lao PDR.
Documents to provide to the Lao Government when applying to register a Limited Company
The Government requires various documents as part of the overall ‘package’ to be submitted to it. Below is a brief list of various documents required to register a Limited Company. This list is not exhaustive and not all of these documents will be required in every scenario. The Government requires documents to be lodged in the Lao language, but many foreign investors choose to have these documents in English as well (or whichever other language is preferred in their particular scenario). Obviously it is desirable that any investors understand the documents they are signing, which makes it desirable to have at least a Lao language version and one other language version of all documents lodged with the Government.
Certificates and Licences Granted by the Government on Registration
When a Limited Company is registered, the various Government Ministries and Departments will provide the following documents to you:
Once you have received the Enterprise Registration Certificate and TIN your business is considered to legally exist. Not all of these documents will be issued at the same time, and there is a certain amount of chasing of documents with the different Ministries to ensure you have received all the necessary documents to commence your operations.
Obviously once your business is operating it needs to comply with all relevant taxation, salary and other requirements under Lao laws.
While most investments in Laos are straightforward, investment in some industries can be sensitive or closed to foreign investment, and we recommend contacting an experienced commercial lawyer for more information.[:zh]
Attempting to start a business in Laos can be a little daunting, however there is a basic structure and process to follow. 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, as we can see all around us, companies do get established, and more and more investors are coming here to do business.
One issue that should be kept in mind is that some industries are actually closed to foreign investment, so if you are thinking of starting a business here it is best to find out if you are able to invest in your chosen industry before you spend a great deal of time, money and heartache attempting to do something that you cannot actually do.
Company Structures in Laos
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.
Representative Office
A Representative Office represents a legal entity registered in another country, where that foreign entity wants to have a formal, recognised 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.
The term of a Representative Office is one year and this can be extended twice, giving a total term of three years, unless the head office of the Representative Office has a Memorandum of Understanding (MOU) or agreement signed with the Lao government to investigate and collect specific data for a project for a longer period of time. The term of the Representative Office can then be extended in accordance with the validity of the MOU or agreement signed with the Lao Government.
A Representative Office may undertake the following activities:
A Representative Office does not function in the way that a regular Limited Company can, and in particular is not allowed to conduct the following activities:
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:
Both Representative Office and Limited Company structures have their benefits and advantages, depending on what you intend to achieve in the Lao PDR.
Documents to provide to the Lao Government when applying to register a Limited Company
The Government requires various documents as part of the overall ‘package’ to be submitted to it. Below is a brief list of various documents required to register a Limited Company. This list is not exhaustive and not all of these documents will be required in every scenario. The Government requires documents to be lodged in the Lao language, but many foreign investors choose to have these documents in English as well (or whichever other language is preferred in their particular scenario). Obviously it is desirable that any investors understand the documents they are signing, which makes it desirable to have at least a Lao language version and one other language version of all documents lodged with the Government.
Certificates and Licences Granted by the Government on Registration
When a Limited Company is registered, the various Government Ministries and Departments will provide the following documents to you:
Once you have received the Enterprise Registration Certificate and TIN your business is considered to legally exist. Not all of these documents will be issued at the same time, and there is a certain amount of chasing of documents with the different Ministries to ensure you have received all the necessary documents to commence your operations.
Obviously once your business is operating it needs to comply with all relevant taxation, salary and other requirements under Lao laws.
While most investments in Laos are straightforward, investment in some industries can be sensitive or closed to foreign investment, and we recommend contacting an experienced commercial lawyer for more information.[:]
We are gearing up to attend the Sixth International Conference on Water Resources and Hydropower Development in Asia Conference and Exhibition, which will be held in Vientiane 1-3 March 2016.
The conference will take place in the National Convention Center, with more than 500 delegates from 50 countries are expected to attend the event to discuss all aspects of water resources development of particular relevance to the Asian region. Delegates will represent major utilities, hydro plant developers, consulting practices and manufacturing companies, as well as financial and environmental specialists.
We will be there sponsoring your coffee on Wednesday, -stop by and say hi!
You can find further details and the registration form here:
http://www.hydropower-dams.com/ASIA%202016.php?c_id=303.
[:en]Target Magazine is a bilingual business-focused magazine published in Laos. In the February 2016 edition (which features the Australian Ambassador to Laos, Mr John Williams, on the cover), you can read about the history of Australian investment in Laos and hear the thoughts of the CEO of ANZ Bank Vientiane, Tammy Medard, and Country Manager of Arion Legal, Kate Baillie, as they discuss the likely impact of the ASEAN Economic Community on business in Laos.
If you haven’t already, make sure you pick up a copy of this month’s Target Magazine! [:zh]Target Magazine是老挝的一份以业务为中心的双语杂志.2016年2月版（封面为澳大利亚驻老挝大使John Williams先生）刊登了老挝境内澳大利亚投资的发展历史以及澳新银行万象分行总裁Tammy Medard和Arion Legal律师事务所驻老挝经理Kate Baillie关于东盟经济共同体对老挝商业的潜在影响的看法。
如果您还没有了解这些，请复印一份Target Magazine当月的期刊！
[:]
Merry Christmas from the Arion Legal team!
Our offices will close on 28 December 2015 for the New Year period and will reopen on 4 January 2016.
Thank you for your support to date and we look forward to serving you in 2016!
Arion Legal was recently among the sponsors of a cruise on the Sydney Harbour for the visiting delegation of Lao Deputy Prime Minister, Government of Lao Ministers, the Lao Ambassador to Australia and other Lao Government officials.
Arion Legal Managing Director Mike McDonald is pictured with the Lao Deputy Prime Minister H.E Bounpone Bouttanavong.
Leading international law firm Arion Legal is pleased to welcome the respected Lao lawyer and former Director General of the Legislation Department of the Ministry of Justice Khamkong Liemphrachanh and German lawyer Teresa Krasteva to its corporate and commercial practice. The team of two Senior Legal Advisors join the Vientiane office effective 7 July 2015.
Khamkong has a Bachelor of Law from the Royal Institute of Law and Administration in Vientiane, Lao PDR, and a Master of Law from the Azerbaidjan State University in the former Union of Soviet Socialist Republic. He specialised in litigation and Government relations, with private law firms Rajah & Tann and Allen & Gledhill and has extensive experience in legal and policy reform in Lao PDR. Khamkong is a member of the Lao Bar Association and has been a member of the Arbitrator Panel of the Economic Dispute Resolution Center since 2000 and a member of the International Association for Water Law since 1992.
Teresa is a qualified international attorney from Germany (Volljurist) with professional experience in the areas of Corporate and Commercial Law and litigation in Europe and Asia. She has a special expertise in cross-border transactions and corporate restructuring and a deep understanding of the challenges and opportunities facing commercial ventures and development projects in emerging market contexts.
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