PREAMBLE:
If you are operating an online business, ensure your enterprise is protected and compliant. According to the latest mandate from the Ministry of Industry and Commerce (MOIC), registering for an E-Commerce License (E-Trust) is a mandatory requirement for all operators. This measure is designed to enhance consumer confidence and ensure your business operates in full legal compliance.

KEY PROVISIONS:
With the continuous expansion of the digital economy, E-Commerce operations in the Lao PDR are undergoing a transition into a unified regulatory framework. To foster consumer trust and ensure the maintenance of commercial order, all individuals and legal entities must strictly adhere to the following regulations:

A. Mandatory Notification and Licensing
In accordance with Instruction No. 0479/MOIC dated April 5, 2023 on the Notification of Acknowledgment and E-Commerce Business Licensing, all professional commercial activities involving the sale of goods or services through electronic channels including websites, applications, and social media platforms must obtain either an acknowledgment Certificate or an E-Commerce Business License from the Industry and Commerce sector.

B. Registration Procedures and Channels
To enhance the ease of compliance, the government provides two primary application channels:
a. Physical Filing: Applications may be submitted directly to the E-Commerce Management Division, Department of Internal Trade, Ministry of Industry and Commerce.
b. Digital Filing (E-Trust System): Individuals and legal entities located within districts and provinces may apply for certification or licensing via the E-Trust Online Registration application to ensure a more streamlined and efficient process.

C. Business Registration for Legal Entities
Legal entities intending to register a new enterprise must first submit their application to the Enterprise Registrar, Ministry of Industry and Commerce. Upon receiving the Enterprise Registration Certificate, the entity must then coordinate with the Department of Internal Trade to obtain the specific E-Commerce permit required by law.

D. Validity and Renewal Terms
The Acknowledgment Certificate or E-Commerce Business License is valid for a period of three (3) years. Operators intending to continue their business activities must submit a renewal application at least thirty (30) days prior to the expiration date.

E. Penalties for Non-Compliance
The imposition of fines or other measures against violators refers to the owners of e-commerce channels, specifically merchants, individuals, or legal entities who own e-commerce websites or applications. Those who fail to apply for or renew their licenses as required by law shall be subject to administrative fines, which are not classified as criminal offenses related to e-commerce. These measures include warnings, mandatory training, seizure, temporary suspension of business operations, or the revocation of the e-commerce business license

In instances of non-compliance (e.g., operating without a license or using an expired license), Trade Inspection authorities will strictly enforce fines and other administrative measures. These actions are stipulated in Decision No. 2828/MOIC, dated November 11, 2025, regarding Fines and Measures Against Violators of E-Commerce Decrees and Regulations.

In practice, non-compliance such as failure to renew licenses is usually treated as an administrative or civil issue, resulting in warnings or fines. However, if a company operates without proper registration or licenses, Article 297 of the Penal Code applies, and the business operator may face criminal penalties including imprisonment and fines. Ultimately, while the operator bears the primary responsibility for compliance, the precise duties and liabilities among the company, its shareholders, and its directors or managers shall be determined by the prosecutor based on the relevant facts.

F. Governing Authorities
The Provincial and Capital Departments of Industry and Commerce, in coordination with District Offices, are authorized to monitor, inspect, and initiate legal action against any E-Commerce operators who violate established laws and regulations.

G. Effective Date and Regulatory Transition
Notice No. 3988/MOIC.sec, dated December 17, 2025, concerning E-Commerce registration via the E-Trust system, will come into force on February 1, 2026. This regulation supersedes Notice No. 0991/MOIC.sec, dated May 15, 2023. The effective date has been established in accordance with the Law on Making Legislation, following its publication in the Official Gazette.

CONCLUSION:
Registration is more than just a regulatory formality; it is a strategic enhancement of your business across multiple dimensions:

A. Building Consumer Confidence
a. Security Certification: When customers perceive that your business is properly licensed, it accelerates their purchasing decisions and provides assurance regarding payment security.
b. Professional Identity: It serves as a formal verification of your business’s existence, distinguishing your enterprise from fraudulent entities and scammers.

B. Legal Protection and Safeguards
a. Statutory Protection: In the event of a commercial dispute, you possess a clear legal standing to seek assistance and mediation from the relevant authorities.
b. Operational Peace of Mind: You can operate without the constant risk of heavy fines or sudden administrative shutdowns.

C. Digital-First Convenience
a. Time Efficiency: Eliminate the need for physical travel to government offices. The entire process can be completed via the E-Trust App at your convenience.
b. Real-time Tracking: The digital system allows you to monitor your application status instantly and provides automated alerts when your license is approaching its expiration date.

About ILAW LAOS

With years of extensive experience, ILAW LAOS Co., Ltd. specializes in legal consultancy and corporate operations within the corporate legal sector provides comprehensive, end-to-end legal services that go beyond mere document submission. Leveraging our expertise in direct coordination with the Ministry of Industry and Commerce, we are dedicated to transforming complex administrative procedures into simple, efficient processes that fully comply with international standards.

AUTHOR:
Tanadee Pantumkomon, Partner; and
Nim Khampasone, Corporate Lawyer.

They can be reach at [email protected]

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