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Legal Document
Title: Decree of the Prime Minister Regarding the Implementation of the Law on the Promotion and Management of Foreign Investment in the Lao People's Democratic Republic No. 46/PM, dated 23 March 2001
Type: Decree
Responsible Agency: Ministry of Planning and Investment
Issuing Date: 2001-03-23
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List Measures Related to Legal Documents
Establishment of Branches or Representative Offices by a Foreign Owned Investment EnterpriseA wholly foreign-owned investment enterprise may establish a new entity in the Lao PDR, in the form of a branch or a representative office of the parent company located abroad.Active
Forms of Establishment of Enterprises for a Foreign InvestorA Foreign Investor may establish an enterprise in forms consistent with the Business Law namely:
partnership company; limited company; and public company.
Forms of Investments for Foreign InvestorsA Foreign Investor may invest in the Lao PDR in two forms as: a 100% foreign owned investment enterprise or as a joint venture enterprise between a Foreign Investor and a domestic investor.Active
Limitation on Entities and branches to be established by Foreign InvestorsA Foreign Investor such as a bank or a financial institution, an insurance company, an international consulting company or a foreign airline company may establish a new entity or branch in the Lao PDR in accordance with this Decree. Other companies shall not be approved to establish a branch in the Lao PDRActive
Minimum capital requirement for foreign investment enterprisesEvery form of foreign investment enterprises (except representative office) shall have a minimum registered capital of US$100,000Active
Minimum capital requirement for Foreign Investors engaging in joint venturesIn a joint venture enterprise, a Foreign Investor must contribute at least 30%, of the total registered capital proposed by the Foreign Investor at the time of submission of the investment application, except for a foreign investment enterprise established in activities open [to foreign investment] but with conditions in which the FIMC reserves a right to participate in the shareholding and establishes detailed conditions when issuing notifications regarding activities open to foreign investment I but with conditions.Active
Obligatory Performance Requirements for Foreign InvestorsForeign Investors shall give priority to Lao nationals when using technical personnel, and employ Lao labour, and upgrade the skills of such employees and labourers;Active
Obligatory Performance Requirements for Foreign InvestorsForeign Investors shall open deposits in Kip currency and a foreign currency in a Lao PDR commercial bank or a foreign bank established in the Lao PDRActive
Obligatory Performance Requirements for Foreign InvestorsForeign Investors shall utilize the accounting system of the Lao PDR or if it is necessary to use international accounting system, the foreign investment enterprise must first receive approval from the relevant sectors;Active
Obligatory Requirements for Foreign InvestorsForeign Investors shall, before signing a memorandum of understanding and other agreements as listed in Article 16.2 of this Decree that involve a request for a concession to natural resources of the country, the Foreign Investor or developer, give a cash guarantee, and the value, procedures and conditions regarding such guarantee shall be provided in the memorandum of understanding or the agreements as negotiated between the Lao PDR ami the investor or developer;Active
Prohibition on activities of Foreign InvestorsA Foreign Investor shall not invest in closed activitiesActive
Prohibition on Employment of Foreign NationalsA Foreign National shall not be employed in reserved professions, except in some cases, where the FIMC is entitled to consider an exception if seen as necessaryActive
Prohibition on the Ownership of Land by Foreign Investors, Foreign Investment Enterprise or Foreign NationalA foreign Investor, a foreign investment enterprise or a foreign nationals are prohibited from owning land in the Lao PDR.Active
Prohibition on the Transfer of the Investment LicenseAn investor who has received an investment license is prohibited from assigning or transferring the investment license or foreign investment activities issued by the FIMC to other another individual, whether partly or wholly, if such investor has not received approval in writing from the FIMCActive
Reporting obligations for Foreign InvestorsForeign Investors shall report their activities to relevant authorities regularly in accordance with regulationsActive
Rules for Establishing Enterprises and Approval Procedures for Foreign InvestmentA Foreign Investor who wishes to establish a foreign investment enterprise in the Lao PDR must submit or prepare an investment application for the Foreign Investment Management Cabinet (FIMC) for approval and in accordance with the form and necessary support documentation which depend on the type, activities and characteristics of the investment project as determined by the FIMC.Active