After promulgation, the upcoming Civil Code currently being drafted by the Government of Lao PDR (the “GOL”) will replace the Property Law; Contract and Tort Law; Family Law; Heritage and Basis of Inheritance; Secured Transaction Law; Nationality Law; Enterprise Law; and others. It aims to homogenise and clarify the legal concepts expressed in different, and sometimes contrary, ways across the scope of numerous laws.
Enacted on 20 December 2011, the Law on Intellectual Property No. 01/NA (the “Law”) is the principle legislation governing intellectual property (“IP”) protection in Lao PDR. The Law defers ultimate authority at the top of the hierarchy of IP regulations to international conventions and agreements to which Lao PDR is a party. As such, where inconsistencies exist between the Law and international conventions and agreements, the provisions of the international convention or agreement shall prevail.
The Lao People’s Democratic Republic’s (“Lao PDR”) amended Law on Investment Promotion (the “Law”) recently came into force on 19 April 2017. The Law sets out some new and amended articles regarding promoted business sectors and investment incentives, forms and types of investment, and investment management mechanisms that aim to better facilitate company incorporation and improve investment throughout the country.
One of the most common agreements made in Lao PDR are lease agreements, whether they are for residential accommodation, office or shop space, factory or farm land or any other personal or commercial purposes. However, from time to time, disputes or disagreements may arise from the lease agreement, many of which could have been avoidable through clearly stated terms in a lease contract or a legal review for compliance under Lao PDR law.
The Ministry of Industry and Commerce (“MOIC”) recently released a Notification (No. 2633/MOIC dated 7 November 2017) (the “Notification”) regarding the abolishment of the minimum registered capital requirement for foreign investors in general business companies.