How to register a company in Laos: A guide for employers

Launch your business in Laos—Southeast Asia’s booming hub!

Laos is becoming a hotspot for businesses in Southeast Asia. It sits between China, Vietnam, Thailand, Cambodia, and Myanmar. The country offers tax breaks in Special Economic Zones (SEZs) and cheaper labor. Plus, it has excellent market access thanks to the China-Laos Railway. Being part of ASEAN means more trade options as well. With a fast-growing economy, Laos has become a great place to grow your business.

You can set up a legal entity in Laos or benefit from an Employer of Record (EOR) to easily hire local talent and global freelancers. In this article, we’ll walk you through different options and help you decide what’s most suitable for your business.

The business benefits of registering your company in Laos

Setting up your business in Laos has many perks, including:

• Great location for reaching Southeast Asian markets.
• Lower costs for wages and infrastructure.
• Tax breaks that save you money.
• Easy labor management thanks to simple laws in SEZs.
• Quick online registration options.
• A chance to tap into growing markets that need modern services.

Starting a business in Laos gives you access to growing markets, tax benefits, affordable talent, and government support. With options like Employer of Record (EOR), global payroll, and global compliance, expanding in Laos can be even easier than you imagined.

What is the difference between standard company registration and expanding through an EOR in Laos?

When expanding into Laos, you have two main options: standard registration or using an Employer of Record (EOR). Choosing the right one depends on cost, scalability, and long-term business goals. Below is the comparison to help you choose the best one for your needs.

Aspect	Standard Registration	Employer of Record (EOR)
Purpose	Establish a full-fledged business presence in Laos.	Quickly hire employees and operate in Laos
Control	Full control over operations, hiring, and business strategy.	EOR legally employs workers on your behalf.
Cost	Higher upfront costs for registration and setups.	Lower initial costs as you avoid entity setup, tax filings, and legal fees.
Compliance	Requires adherence to Laos’ corporate laws, tax filings, and labor regulations.	The EOR manages compliance, payroll, reducing your risks and administrative work.
Setup Time	Can take several weeks to months.	Fast setup within days.
Scalability	Scaling requires additional entity registrations.	Scale flexibly while avoiding legal hassles.

What are the other options to grow your business in Laos?

Joint ventures & partnerships are another common way businesses expand their footprint in Laos. You can do this by forming local partnerships, sharing resources, and mitigating risks through collaborative structures that help you navigate the market effectively.

If you want full operational control, company registration is a better option. But if you want a quick start by eliminating the barriers to global expansion, with less risk, an EOR is the way to go.

How an Employer of Record (EOR) simplifies company registration in Laos

An EOR can help you set up your business fast and without the usual headaches. Here’s how:

• Start operating right away; no entity needed. Establishing a legal entity in Laos can take months and involves business licenses, approvals, and registration procedures. Through an EOR, you can engage employees immediately, enabling you to move into the market rapidly and pilot opportunities without lengthy administrative hold-ups.
• Keep payroll and tax processes accurate. Payroll management in a foreign country is always more complex because of local tax regulations and social security contributions. An EOR ensures accurate salary payments, tax withholdings, and social security filings so you don’t incur penalties or errors.
• Follow Laos’ labor laws without hassle. Laos has specific employment regulations, including contracts, benefits, dismissals, and employee rights. Unless you are aware of these rules, you may encounter legal problems. An EOR takes care of all HR and legal obligations so your hiring process complies with Laos labor regulations.
• Cut costs for legal fees. Company registration in Laos is accompanied by legal, compliance, registration, and administrative fees. An EOR eliminates these expenses by enabling you to hire through your current entity, slashing costly overheads.
• Adjust your team size as needed. Hiring or letting go of workers in Laos is difficult because of employment legislation and contractual terms. Using EORs allows you to experiment with new territories without making long-term legal commitments.
• Lower legal and tax risks. Direct hiring puts you at risk for payroll errors, misclassifications, and contract issues. With an EOR, you can concentrate on growing your business without fear of legal ramifications.

Now, let’s understand how to register a company in Laos.

A step-by-step guide to registering a company in Laos

Stepping into Laos opens doors to exciting business opportunities thanks to its strategic location, emerging economy, government incentives, and growing workforce. But knowing the rules is crucial.

By following these steps, you can quickly start a business in Laos and set up your company for long-term success.

Step 1: Select the right business structure

Choosing your business type affects your taxes and operations. Here are some common options to choose from:

• Sole proprietorship: This is suitable for individual entrepreneurs who want complete ownership of their venture. However, it entails unlimited liability, which means your own property may be at risk if the venture runs into financial issues.
• Limited company: Suitable for small and medium businesses, it gives liability protection—your personal wealth is safeguarded in case of business liabilities or lawsuits.
• Public company: A public company might be the best option for larger companies that plan to raise funds from public investors.
• Representative office: This setup is appropriate if you prefer to explore the Laos market first without fully committing. Although a representative office enables you conduct research or create partnerships, it cannot engage in direct sales and revenue-generating activities.

Step 2: Submit your paperwork

You must register your business with the Enterprise Registry Office (ERO) under the Ministry of Industry and Commerce (MOIC). Here, you must apply for the Enterprise Registration Certificate (ERC)—an official acknowledgement of your company. The ERC contains essential information like your company’s registration number, authorized activities, tax identification number, and managing directors’ and shareholders’ names.

Documents required:

• Company charter explaining ownership and activities.
• ID documents of the founders.
• Proof of your business address in Laos.
• Passport copies for foreign investors.

Submission process

Online submission

Submit your documents through the Ministry of Industry and Commerce (MOIC) website. Visit the Department of Enterprise Registration and Management’s portal and follow the instructions for submission.

In-Person submission

Take your papers to the Department of Enterprise Registration and Management office.

For those who want to avoid the hassle of registration, an EOR like Multiplier can eliminate most barriers (and paperwork!) so you can easily build and manage your Laos team.

Step 3: Open a business bank account

To operate legally and manage payroll, taxes, and local transactions, you’ll need to open a business bank account in Laos.

• Company Registration Certificate
• Business License
• Tax Registration Certificate
• Proof of Business Address
• ID copies of key people in the company deposit (varies by bank)

How to open an account:

1. Choose a bank. Compare services, fees, and international transaction options (e.g., BCEL, JDB, LaoVietBank).
2. Submit documents: Provide the required paperwork.
3. Meet compliance requirements: Some banks require an in-person meeting.
4. Deposit funds: Fulfill the minimum deposit requirement.
5. Receive account details: Once approved, you’ll get access to your account.

Prefer a hassle-free approach? An EOR manages payroll and payments, eliminating the need for a local bank account.

Step 4: Register for tax & compliance

To run a business in Laos, you must register for taxes and social security:

• Get a Tax Identification Number (TIN).
• Register for VAT if revenue is above LAK 400 million.
• File your Corporate Income Tax and keep records.
• Register with the Laos Social Security Organization for payroll taxes.

We can’t afford to take risks regarding compliance, taxes, and legalities. An EOR can be a huge help—it helps manage these duties and ensure full legal adherence so your teams can focus on growth.

The actual cost of registering a business in Laos: What to expect?

If you plan to grow your business in Laos, knowing the costs is crucial for budgeting and managing expenses. Here’s what to expect:

1. Registration costs

• Government fees: Fees for business registration can go from LAK 10,000 to LAK 5,000,000 (USD 1–531)
• Costs may vary if you need a legal address or notary services.
• Share capital changes based on your business type.

2. Annual maintenance costs

• Accounting services can start at $160 monthly, depending on your needs.
• Filing annual financials is a must, and costs vary.

3. Additional considerations

• Banking fees for opening and keeping a local account.
• Additional licenses based on your industry may have their costs.

Partnering with an EOR can simplify your finances. They combine costs into one fee and handle tax filings and compliance.

Cost analysis: Traditional company registration vs. EOR in Laos

Is your business considering a move to Laos? It’s important to plan your costs wisely. You have two main options: traditional company registration or using an Employer of Record (EOR). Each choice will impact your budget and affect how smoothly things run.

Let’s break it down so you can choose what works best for you.

Cost aspect	Standard registration	Employer of Record (EOR)
Setup fees	High—includes government registration fees, legal services, and share capital requirements	Low—no entity setup required
Share capital	Minimum capital	Not required
Legal and compliance	Requires independent tax, VAT, and labor law compliance.	The EOR ensures compliance
Accounting and admin	Monthly bookkeeping and filings	It’s a part of the service fee
Annual maintenance	Cost varies based on complexity	Predictable fees

Traditional company registration in Laos can cost a lot upfront and will involve ongoing expenses and risks. On the other hand, an EOR can simplify things, giving you one fixed fee to cover everything while keeping you compliant.

Need help with expansion in Laos? Multiplier can help. Our EOR solution reduces operational burdens, ensures compliance, and reduces legal paperwork so your business can grow without hassles or hindrances. We help you onboard talent and scale quickly while allowing you to remain in control of all hiring decisions.

Expand into Laos seamlessly—Multiplier makes it simple

Multiplier takes care of compliance, payroll, and HR in Laos—so you can expand without restrictions and red tape!

1. Access top talent without hassles—focus on growth. Our EOR service helps with smooth onboarding and legal contracts.
2. Easy payroll solutions. We manage tax and mandatory social security contributions, ensuring compliance with Laos labor laws and keeping payroll hassle-free.
3. Organized HR management. Besides payroll, we help your HR teams streamline onboarding, expense tracking, and time-off management for global teams.
4. Stay compliant. Our deep understanding of Laos’ labor laws and tax regulations ensures you meet all legal requirements and filing obligations without headaches.
5. Excellent benefits. Attracting the top talent in Laos is not enough. We help you retain great employees with country-specific benefits.

Expanding your business in Laos is easier with Multiplier. Our comprehensive Employer of Record solution helps you hire and manage a workforce in Laos with ease.

Ready to chat with our international expansion specialists? Book a Demo today.