VDB Loi Laos Alert – Notification on the Inspection and Monitoring of the Existence of Enterprises after IncorporationNovember 2, 2015
Recently, the Ministry of Industry and Commerce (MOIC) issued Notification No. 2121/IC.ERM dated 14 October 2015 (the Notification) regarding the inspection and monitoring of the existence of enterprises after incorporation.
The Notification imposes a new reporting requirement on all enterprises. Enterprises are now obliged to submit an annual report to the enterprise registry officials within the first quarter of the following year in respect to their previous year’s business operations (a standard formatted report is available at the MOIC).
For newly-incorporated enterprises, the Notification reiterates the Enterprise Law requirement that enterprises must commence operations, including applying for other necessary licenses, starting construction, entering into contracts, importation etc., within 90 days from the date of incorporation. Within 10 business days of the expiration of this 90-day period, enterprises must submit a report on their registration and operations to the enterprise registry officials (a standard formatted report is available at the MOIC).
Failure to fulfill the above requirements may lead to suspension of the business and dissolution of the enterprise.
The Notification also requires that any change of office address must be updated in the incorporation data and reflected in the enterprise registration certificate within 30 days from the date of the signed lease agreement or purchase agreement. After registration of the new office address with the enterprise registry officials, the tax authorities must be notified of the same within five working days.
This Notification came into full force and effect from 14 October 2015, and all enterprises are expected to strictly comply with it.
Did you know that VDB Loi Laos is licensed to provide compliance accounting services to complement our tax compliance services?
VDB Loi is a network of leading law and advisory member firms and affiliated companies that comprises nine partners and over 100 lawyers and advisors, with offices in Cambodia, Indonesia, Laos, Myanmar and Vietnam and representatives in Singapore and Tokyo. We provide the highest quality solutions for transactions and taxation.
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