Laos is a tropical country in Southeast Asia. It is known for its mountains, the architecture of the French colonial era (previously the country was under the colonial control of France), hill tribe settlements and Buddhist monasteries, which, in particular, attracts not only tourists, but also investors, who want to register a company in Laos. This perspective is especially interesting for those, who plan to set up a travel company in Laos (this jurisdiction is just beginning to develop this direction). It is, also, important, that this is the only state in Southeast Asia with access to the sea.
The capital of the country is Vientiane. An official currency is Lao Kip. Laos borders on China, Vietnam, Cambodia, Thailand and Myanmar.
Lao People's Democratic Republic includes a list of countries, not participating in the automatic tax information exchange (CRS). Also, this level of freedom gives you the opportunity, with the help of YB Case, to register a company in Laos only with a passport, make all necessary seals, signatures, so that you can open an account for the company in a Lao bank (remotely).
Lao is the official language in the jurisdiction, the two most important foreign languages in Laos are Thai and Vietnamese. If you need a help with paperwork for registering a company in Laos, YB Case specialists will provide with all necessary support and translation services for setting up a company in Laos. French and English are, also, used in the country as the only official language of ASEAN.
There are four international airports: Vientiane (VTE), Luang Prabang (LPQ), Pakse (PKZ) and Savannakhet (ZVK). The national state airline Lao Airlines is based in Vientiane.
In what area is it preferable to register a company in Laos?
Laos is an agricultural state and a potential exporter of food, given its relatively low population density (about 80% of the population is engaged in agriculture and generates about half of GDP). The entire agricultural sector is privately owned. Particularly suitable for agriculture are the Mekong floodplains and the Bolavens Plateau. Main export commodities are: energy (20% of exports), coffee, wood and wood resins (41%), rattan, electricity and tin, green cardamom, leather and skins, natural medicines, and more recently, gold and copper. It is promising to establish a company for the production of eco-products in Laos, since no chemicals are used in the fields.
The potential for growth in livestock is very high. The same applies to fish products.
Industry is poorly developed. The main industry is hydroelectric power generation under the monopoly of the state-owned Electricité du Laos.
There are textile and woodworking enterprises. About 90% of Laos's industrial and craft enterprises are micro-enterprises. Large companies, until recently, were state-owned enterprises or controlled by government agencies, such as the military.
Taxes in Laos
An income tax
24% to 26% *
* With a company income of up to 12 million varnishes per year (about $1,500) - 3-7%
A tax on dividends, interest and royalties **
5% or 10%
** may be reduced in case of applicable tax agreement between Laos and another country
A personal income tax (PIT)
10% on all goods and services, except:
If the turnover exceeds 400 million varnishes ($48,200), you need to register a company in Laos to pay VAT.
carbonated and invigorating drinks: 5% -10%
fuel: 5% -35%
tobacco products: until 2020 - 15%-30%, then - 35% -60%
alcohol: 25% -70%
Registering a bank account for a company in Laos
The financial system is underdeveloped: three state-owned banks in Laos dominate the market. You can open an account for a company in Laos in one of the following banks:
- Indochina bank;
- Standard chartered;
- ICBC Vientiane;
- ACLEDA Bank
If you need advice on starting a business in Laos, or the advice of a specialist on opening a bank account and obtaining business licenses in Laos, please, contact YB Case team in any way convenient for you.