2014 29 September

New Requirement for Consulting Companies Registered under the Vientiane Department of Industry and Commerce (“DOIC”)

#Laos #law #Legal #Legal & Tax Update

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In recent months, the DOIC has issued several notifications to monitor the registered and operating legal entities under its authority.
  
Amendment of Enterprise Registration Certificate for Consulting Company Registered with Vientiane Department of Industry and Commerce
  
On 7 August 2014, the DOIC published Notification No. 1495/DOIC requesting legal entities conducting consulting activities, such as legal, tax, accounting, construction, business or any other type of consulting, that are registered with the Vientiane Department of Industry and Commerce (Vientiane DOIC) to amend their Enterprise Registration Certificate (“ERC”) or re-register the enterprise by 31 August 2014 with the Department of Registration and Management of Enterprises of the Ministry of Industry and Commerce (“MOIC”). Consulting companies which do not amend their ERC or re-register their enterprise within the given timeframe without sufficient reason may be subject to suspension of business activities. Continuing to use an ERC issued by Vientiane DOIC shall be deemed to be conducting business without enterprise registration. This notification does not apply to companies that were registered by the MOIC prior to the DOIC being authorized to register certain enterprises as of September 2013. While the notice period within which to re-register companies is relatively short, affected companies are advised to contact the Department of Registration and Management of Enterprises, MOIC as soon as possible.
  
Requirement to Provide Prices in Lao Kip
  
On 17 June 2014, the DOIC issued Notification on Affixing the Commodity Price and Service Charges in Lao Kip (No. 1145/DOIC) to promote and control the use of Lao Kip. This Notification provides a reminder that only legal entities authorized to use foreign currencies are allowed to affix prices or charge fees in a currency other than Lao Kip. Entities not so authorized must charge and affix their prices or fees in Lao Kip. Previously the Decree regarding the Management of Foreign Exchange and Precious Metals (No. 01/OP, 17 March 2008) set forth this requirement, and such Decree is still effective. The Bank of Lao PDR provides the authorization to use foreign currency in the Lao PDR. Therefore, companies with no such authorization should be aware that the use and receipt of foreign currency without approvals is subject to sanctions. 

For further information on this notice, please contact our advisers: Rupert HawDanyel ThomsonAgnès Couriol