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In January 2013, Catherine Follett from McDonald Steed McGrath presented at the Lao PDR’s first seminar on taxes together with the Lao Ministry of Finance, KPMG and DFDL.
This seminar was held at the Lao Plaza Hotel in Vientiane and had a record turnout of approximately 200 attendees. This seminar was the first of its kind in the Lao PDR and focussed on recent significant changes to the Lao taxation regime.
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As many foreigners have discovered to their dismay, marrying or divorcing a Lao citizen is not a straightforward process. Unlike most other jurisdictions, a foreigner must obtain the permission of the Lao government in order to marry a Lao. The overall process involves the presentation of a number of documents, interviews and assessment of the application by various government offices.
Under Lao law, there are two ways of certifying a marriage to a Lao citizen in Laos:
We note that whilst certifying a foreign marriage certificate is possible and legal (under the Decree on Marriage between Lao and Foreigner No. 198 dated 19 December 1994), the Ministry of Public Security (Foreigner Control Department) has advised completion of this process will not, in practice, be recognised by the Lao police, immigration officials or village authorities who will in general only recognise a Lao Marriage Certificate as proof of marriage between a Lao and foreigner. As it is illegal for a foreign-Lao couple to cohabit together before marriage, if the couple are planning on living and working in Laos, it is highly recommended that they obtain a Lao Marriage Certificate.
Below is a very brief discussion of the steps required to marry your beloved. Obviously every marriage (and divorce!) is different and you should obtain specific legal advice relating to your circumstances.
What the foreigner needs to provide for marriage to a Lao citizen
All of these documents must be translated into Lao and be certified by the Ministry of Justice.
What the Lao citizen needs to provide
Legal status of baci ceremonies for engagements and marriages
The marriage application form includes the requirement for a Proof of Engagement Letter, which must be signed by both families as witnesses together with the Village Chief. There must be a Lao engagement ceremony or similar in front of the Village Chief, even if there is an engagement party overseas.
Who is the marriage application made to
The application documents will go to:
How can a foreigner and Lao citizen divorce
The Family Law, No.05/NA, dated 26 July 2008 governs both marriage and divorce. There are two kinds of divorce – by mutual agreement and by court decision.
The Court will oversee and order divorce where:
When a court receives the request for a divorce the court has a duty to try to reconcile the couple. In the event that reconciliation does not occur immediately, additional time for consideration not exceeding three months shall be given.
If the married couple do not reconcile, the court shall grant the divorce if it appears that they cannot cohabit or care for and preserve the family unit. In its decision on divorce, the court must formulate measures to protect the interests of minor children and if the husband or the wife is unable to work support him or herself.
After the pronouncement of divorce by the court, the court must send two copies of its decision to the family registrar officer for registration of the divorce, and give one copy to each spouse.
Custody of the children
If a husband and wife do not agree on the custody of children after divorce, the court shall decide whether the father or mother should have custody taking into consideration the children’s interests.
A divorced couple must care for and educate their children. The court shall decide on the child support to be provided until the children reach maturity based on agreement between the husband and wife or based on the court’s decision in the event that agreement cannot be reached between the husband and wife.
For more information on marrying and divorcing in Laos please contact one of our experienced lawyers.[:zh]
As many foreigners have discovered to their dismay, marrying or divorcing a Lao citizen is not a straightforward process. Unlike most other jurisdictions, a foreigner must obtain the permission of the Lao government in order to marry a Lao.The overall process involves the presentation of a number of documents, interviews and assessment of the application by various government offices.
Under Lao law, there are two ways of certifying a marriage to a Lao citizen in Laos:
We note that whilst certifying a foreign marriage certificate is possible and legal (under the Decree on Marriage between Lao and Foreigner No. 198 dated 19 December 1994), the Ministry of Public Security (Foreigner Control Department) has advised completion of this process will not, in practice, be recognised by the Lao police, immigration officials or village authorities who will in general only recognise a Lao Marriage Certificate as proof of marriage between a Lao and foreigner. As it is illegal for a foreign-Lao couple to cohabit together before marriage, if the couple are planning on living and working in Laos, it is highly recommended that they obtain a Lao Marriage Certificate.
Below is a very brief discussion of the steps required to marry your beloved. Obviously every marriage (and divorce!) is different and you should obtain specific legal advice relating to your circumstances.
What the foreigner needs to provide for marriage to a Lao citizen
All of these documents must be translated into Lao and be certified by the Ministry of Justice.
What the Lao citizen needs to provide
Legal status of baci ceremonies for engagements and marriages
The marriage application form includes the requirement for a Proof of Engagement Letter, which must be signed by both families as witnesses together with the Village Chief. There must be a Lao engagement ceremony or similar in front of the Village Chief, even if there is an engagement party overseas.
Who is the marriage application made to
The application documents will go to:
How can a foreigner and Lao citizen divorce
The Family Law, No.05/NA, dated 26 July 2008 governs both marriage and divorce. There are two kinds of divorce – by mutual agreement and by court decision.
The Court will oversee and order divorce where:
When a court receives the request for a divorce the court has a duty to try to reconcile the couple. In the event that reconciliation does not occur immediately, additional time for consideration not exceeding three months shall be given.
If the married couple do not reconcile, the court shall grant the divorce if it appears that they cannot cohabit or care for and preserve the family unit. In its decision on divorce, the court must formulate measures to protect the interests of minor children and if the husband or the wife is unable to work support him or herself.
After the pronouncement of divorce by the court, the court must send two copies of its decision to the family registrar officer for registration of the divorce, and give one copy to each spouse.
Custody of the children
If a husband and wife do not agree on the custody of children after divorce, the court shall decide whether the father or mother should have custody taking into consideration the children’s interests.
A divorced couple must care for and educate their children. The court shall decide on the child support to be provided until the children reach maturity based on agreement between the husband and wife or based on the court’s decision in the event that agreement cannot be reached between the husband and wife.
For more information on marrying and divorcing in Laos please contact one of our experienced lawyers.[:]
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Lao PDR operates a system of notarising and registering various documents that are used in everyday life and for business purposes to certify their adherence to Lao PDR law.
Notarisation
A “notary” is generally defined as a person with legal training (but not a law degree necessarily) who is licensed by the state to perform acts in legal affairs, in particular witnessing signatures on documents. Each legal system has its own rules for notaries.
In Lao PDR, the Notary Law (Amended) No. 11/NA, 26 November 2009 provides for notaries and Notary Offices in Laos. Notary Offices are established within justice divisions at each province or prefecture and there are no independent notaries operating outside of those established Notary Offices.
The law requires notaries to review the correctness of the documents and events in detail before certifying them. This is a much more onerous obligation than is imposed in other jurisdictions for the witnessing of signatures or certifying true copies of documents. The benefit of the notary system, opposed to just having a signature on a document witnessed and certified, is that having a document notarised in Lao PDR also ensures that the document will be held enforceable before a Lao PDR court without having to meet any other standard of proof on its enforceability.
Notarising a document also means that the Ministry of Justice then has a copy of that document in the event of there being a dispute over the existence or contents of that document.
Documents in Laos
In Laos, many contractual documents are required to be notarised and registered in some way to ensure recognition of their legal validity. This is especially important if there is a dispute about the enforcement of a contract, most commonly contracts such as lease agreements, sale of land agreements, loan and mortgage documents and project documents.
Lao law also requires that notarised contracts are entered into in the Lao language.
For the purposes of notarisation and registration, a Lao language version must be produced. There are some exceptions to this, for example project documents entered into with the Government will sometimes explicitly state that they will only be in the English language. As a matter of practice, but not actually required by the law, the Notary Office requires both parties to sign the document in front of Notary Office officials. This is not always practical, especially if a contract is signed in counterparts, and the Notary Office will accept a representative of the absent party with a power of attorney attesting to the validity of the document.
Common document types such as leases, for example, must be notarised at the Notary Office and registered at the District Office and the District Land Management Authority.
Bank documents such as loan agreements and mortgages must be notarised at the Notary Office and registered at the Vientiane Land Management Authority.
Project documentation must be notarised at the Notary Office and registered at the State Property Management Department of the Ministry of Finance.
Enforcement of Contracts in Laos
The legal system in Laos is evolving rapidly, but it is still not as robust as other jurisdictions. In the meantime, the enforcement of contractual obligations requires the translation, notarisation and registration of the contracts themselves before courts will be willing to accept submissions in relation to them.
For more information on the enforcement of contracts in Laos please contact one of our experienced commercial lawyers.
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Here in Laos there is a system of ‘notarising’ and ‘registering’ various documents that are used in everyday life and for business purposes. A “certified translation” is sometimes required by embassies and the Lao Ministry of Foreign Affairs, for example for visa applications and official documentation. A certified translation of a document can be obtained from a company registered to provide translations. In Laos, when applying to register a company, the government requires details of the proposed business. Therefore companies intending to provide translation services must indicate this in their company registration application. If the company registration application is approved, that company is then licenced to provide translations and can then provide “certified translations”.
Notarisation
A “notary” is generally defined as a person with legal training (but not a law degree necessarily) who is licensed by the state to perform acts in legal affairs, in particular witnessing signatures on documents. Each legal system has its own rules for notaries.
In Laos, the Notary Law (Amended) No. 11/NA, 26 November 2009 provides for notaries and Notary Offices in Laos. Notary Offices are only established within justice divisions at each province or prefecture. There are no independent notaries operating outside of those established Notary Offices.
The law requires notaries to review the correctness of the documents and events in detail before certifying them. This is actually very onerous and is a much more onerous obligation than is imposed in other jurisdictions for the witnessing of signatures or certifying true copies of documents.
Notarising a document means that the Ministry of Justice then has a copy of that document, and this fact is used in the event of there being a dispute over the existence or contents of that document.
Documents in Laos
In Laos, many contractual documents are required to be notarised and registered in some way to ensure recognition of their legal validity. This is especially important if there is a dispute about the enforcement of a contract. The most common kinds of contracts are lease agreements, sale of land agreements, loan and mortgage documents and project documents. Lao law also requires that contracts are entered into in the Lao language.
For the purposes of notarisation and registration, a Lao language version must be produced. There are some exceptions to this, for example big project documents entered into with the Government will sometimes explicitly state that they will only be in the English language, but this is an exception to the rule. As a matter of practice, but not actually required by the law, the Notary Office requires both parties to sign the document in front of Notary Office officials. This is not always practical, especially if a contract is signed in counterparts. The Notary Office will accept a representative of the absent party with a power of attorney attesting to the validity of the document.
Leases must be notarised at the Notary Office and registered at the District Office and the District Land Management Authority.
Bank documents such as loan agreements and mortgages must be notarised at the Notary Office and registered at the Vientiane Land Management Authority.
Project documentation must be notarised at the Notary Office and registered at the State Property Management Department of the Ministry of Finance.
Enforcement of Contracts in Laos
The legal system in Laos is evolving rapidly, but it is still not as robust as other jurisdictions. In the meantime, the enforcement of contractual obligations requires the translation, notarisation and registration of the contracts themselves before courts will be willing to accept submissions in relation to them. This is different to most other jurisdictions.
For more information on the enforcement of contracts in Laos please contact one of our experienced commercial lawyers.[:]
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On 11 October 2012, the Australian Embassy, the Lao National Chamber of Commerce & Industry and the Australia-New Zealand Business Association held a Lao Australia Business Forum (LABF) at the Lao Plaza Hotel, Vientiane.
The LABF was one of several events marking the 60th anniversary of diplomatic relations between the Lao PDR and Australia in 2012. The aim of the LABF was to encourage bilateral trade and investment, including to:
Introductory remarks were made by Australian Ambassador, H.E. Ms Lynda Worthaisong and LNCCI Vice President, Mr Oudet Souvannavong. The LABF was officially opened by Mme Khemmani Pholsena, Vice-Minister of Commerce & Industry.
The afternoon session on legal & financial services was chaired by Ms Catherine Follett, Country Manager for McDonald Steed McGrath, who also presented on the topic of how to get the best out of a deal in the Lao PDR.
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On 11 October 2012, the Australian Embassy, the Lao National Chamber of Commerce & Industry and the Australia-New Zealand Business Association held a Lao Australia Business Forum (LABF) at the Lao Plaza Hotel, Vientiane.
The LABF was one of several events marking the 60th anniversary of diplomatic relations between the Lao PDR and Australia in 2012. The aim of the LABF was to encourage bilateral trade and investment, including to:
Introductory remarks were made by Australian Ambassador, H.E. Ms Lynda Worthaisong and LNCCI Vice President, Mr Oudet Souvannavong. The LABF was officially opened by Mme Khemmani Pholsena, Vice-Minister of Commerce & Industry.
The afternoon session on legal & financial services was chaired by Ms Catherine Follett, Country Manager for McDonald Steed McGrath, who also presented on the topic of how to get the best out of a deal in the Lao PDR.
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The Lao PDR enjoys a monsoonal climate and has many rivers, including the mighty Mekong. The hydropower industry is well developed and is supported by the Government.
A number of reasonably complicated agreements are needed to put together a hydropower project, all of which we can assist you with – from the beginnings of your investigations to closing your deal.
‘Corruption’ can be defined in many ways. At its simplest, it can be described as the abuse of public power or position for personal advantage. Corruption is an offence under the laws of the Lao PDR, as well as in many other countries.
Some countries impose penalties on its own citizens for corrupt activities committed in other jurisdictions.
We recommend that you do not participate in any activities that could be deemed corrupt.
When investors come to bedding down their plans with their business partners, the best way to try to ensure their business proceeds as smoothly as possible is to document the agreements between the parties in ‘contracts’. These contracts come in many shapes and sizes.
When two parties, whether companies or individuals, decide to undertake a particular project together, they will sometimes create a ‘Joint Venture Agreement’ to keep a record of what each party has agreed to do. Joint Venture Agreements are usually used when the two parties have agreed to do certain things together, but are not forming a company together.
Just to complicate things even more, a Joint Venture Agreement will not be needed in every situation, or a Joint Venture Agreement may be combined with a Shareholders Agreement.
No-one likes having to use lawyers when they are doing business – this is a fact of life!
However, the reality is that ironing out the specific tasks and joint goals of a project before starting in the exciting things you are planning to do can save a lot of headaches and much greater lawyers’ bills down the track if your business relationship deteriorates.
A Joint Venture Agreement will set out the specific milestones the two (or more) parties are trying to achieve. Importantly, it will also set out who pays for what and what to do if one party does not do or pay for what they originally agreed.
Remember – not every project or business relationship will need a Joint Venture Agreement. For more information please contact one of our experienced corporate and commercial lawyers.
As you may be aware, mining and mineral exploration are hot topics in the Lao PDR. McDonald Steed McGrath has strong links to the exploration and mining industries here.
However, you should be aware that these industries are very sensitive here, as they are in every country.
In the last two decades the Lao Government has developed its expertise in assisting companies to invest in these industries.
We can assist you to navigate through the process of applying for the various necessary licences.
For more information on mineral exploration and mining please contact one of our experienced mining lawyers.
A very important question for investors is what rights can they acquire over land in the Lao PDR.
Foreigners are not able to own land here, but they can have long term leases over land.
There have been some recent legislative changes potentially allowing foreigners to own land, but the extent of these changes is not clear yet.
For more information on land use rights please contact one of our experienced commercial lawyers.
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