Setting Up a Company in Laos in 2026: Structure, Steps, Capital and Taxes

Setting up a company in Laos is open to foreign investors, who can own 100% of the business in most sectors. The usual structure is the limited liability company (LLC). Official timelines are a few weeks, but in practice you should allow two to three months, mainly because of the bank account and sector licences.

1. Which structure should you choose?

The limited liability company (LLC) is the standard choice: each shareholder’s liability is limited to their capital contribution, and foreign investors can hold 100% of the equity in most sectors, according to Acclime Laos, a corporate services firm. A representative office lets you explore the market without invoicing. A public company, which the same guide describes as requiring at least three shareholders, is rare for small projects.

2. What are the steps?

1. Check that your activity is not on the controlled business list, adopted by Decree No. 03/PM of 10 January 2019, which triggers a longer procedure.
2. Rent a registered address: it is required when you file.
3. Reserve the company name, then file articles of association translated into Lao at the Ministry of Industry and Commerce one-stop service, which issues the ERC and TIN.
4. Have the official company seal made and register with social security.
5. Open the bank account and import the capital.
6. Obtain the licences specific to your sector: tourism, food service, education, health and so on.

Official timelines are four to five weeks without a sector licence. In the experience of Expat Laos SALITHYNA, six to fourteen weeks is more realistic.

3. How much capital do you need?

There is no universal minimum capital, but some sectors set one. Wholesale and retail trade is the most regulated: according to the Tilleke & Gibbins foreign investment review for Laos (2025), foreign investors need registered capital of more than LAK 4 billion, and more than LAK 20 billion to own 100% of the company.

Above all, the amended Investment Promotion Law No. 62/NA requires at least 30% of the registered capital to be imported within 90 days of the licence and the rest within one year, under Article 53 of the text published by UNCTAD.

4. What taxes will your company pay?

According to PwC Worldwide Tax Summaries, profit tax is 20% for all other domestic and foreign companies, down from 24%, and small and medium businesses with turnover of LAK 400 million or less may pay a lump-sum tax instead. The same summaries give VAT at 10% and personal income tax on salaries ranging from 0 to 25%.

📊 Key figures for a new company in Laos (September 2026)

Note that France has no tax treaty with Laos. Laos has roughly a dozen double tax treaties, mainly with countries in the region, and France is not among them. French entrepreneurs should have their situation checked by an accountant familiar with both systems.

5. Which pitfalls should you avoid?

The bank is the real bottleneck: allow two to six weeks for the account. Salaries and most domestic payments are made in kip, which creates currency risk. Finally, a trusted local accounting or legal firm from the first year avoids costly mistakes. Our guide to doing business in Laos in 2026 covers costs and salaries in detail.

❓ Frequently asked questions

Can a foreigner own 100% of a company in Laos?

Yes, in most sectors. Some activities on the controlled business list, and retail trade below certain capital thresholds, remain restricted.

How long does it take to set up an LLC?

Four to five weeks on paper, but more realistically six to fourteen weeks without a sector licence. The bank account is usually the longest step.

Is there a tax treaty between France and Laos?

No. Laos has around a dozen tax treaties, including with China, Thailand and Vietnam, but not with France.

📚 Sources and fact-check references

• Lao PDR — Investment Promotion Law (Amended) No. 62/NA, 28 June 2024, in force 1 October 2024, Article 53 (text published by UNCTAD)
• Lao PDR — Decree No. 03/PM, 10 January 2019, controlled business and concession business lists (Lao Trade Portal)
• PwC Worldwide Tax Summaries — Lao PDR, corporate and individual taxes
• Tilleke & Gibbins — Foreign investment review, Laos, 2025 (law-firm commentary)
• Acclime Laos — Company registration guide (corporate services provider)

Last updated 18 September 2026. This article provides general information and is not legal, tax or accounting advice. Lao-language legislation and the practice of the competent authorities prevail; validate each project with a qualified Lao adviser.

🔗 Continue exploring life and business in Laos

By Clem-Titsada, co-founder of Salithyna Group, based in Vientiane.