Flash Report – MOIC Clarifies Rules for Foreign Branches in Lao PDR

On 23 October 2026, the Ministry of Industry and Commerce (“MOIC”) issued Notice No. 4091 (the “Notice”), clarifying how MOIC’s Instruction No. 2406 on enterprise registration (“2406 Instruction”) applies to branches of foreign entities in the Lao PDR. Foreign commercial banks may establish new branches, while existing registered branches may continue operating under the transitional rules below.

Who can establish a new foreign branch?

Under the Notice, only foreign commercial banks may establish a new branch in Lao PDR, subject to the Law on Commercial Banks. They may apply directly to the Bank of the Lao PDR (“BOL”) for a business operating license without first registering the branch as an enterprise. Once licensed, the branch may apply to the relevant authorities for a taxpayer identification number and an official seal.

A foreign commercial bank branch that seeks to become a locally established commercial bank must register as an enterprise under the Enterprise Law. Other foreign entities seeking to establish a new business presence under 2406 Instruction must register a legal entity in Lao PDR in a form permitted under the Enterprise Law.

Can existing foreign branches continue operating?

Foreign branches that held an enterprise registration certificate and were already operating in Lao PDR before 2406 Instruction took effect (9 February 2024) may continue to operate. If they apply to amend the details on their certificate, the requirements depend on the branch’s activities.

• Foreign commercial bank branches. The enterprise registration official will issue a notice canceling the existing enterprise registration certificate. The branch may continue operating under its BOL business operating license.
• Branches in insurance, international consultancy, or foreign aviation. These branches must change their registered legal form to a partnership or company under the Enterprise Law.

Should you need any assistance with foreign branch registration or changes to an existing enterprise registration, please contact your usual VDB Loi adviser.