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License to Operate Domestic Fuel Distribution Business

ໃບອະນຸຍາດດຳເນີນທຸລະກິດຂອງບໍລິສັດຈຳໜ່າຍນໍ້າມັນເຊື້ອໄຟພາຍໃນປະເທດ

General information
Name of formality License to Operate Domestic Fuel Distribution Business
Type of formality License
Date of last modification 09.01.2018
Responsible Authorities Department of Internal Trade
(021412436;)
LSIC D - Electricity, gas, steam and air conditioning supply
Who should complete this business formality?
Those who intend to operate the domestic fuel distribution business in Lao PDR.
Qualifications needed by the business to get the formality
- Have a business license for domestic distributor company.
- Invest and disburse the registered capital as defined in Article 7, clause 1.2 of Decree No. 331/PM.
- Hold accounts in accordance with the laws
- Have a deposit account with a bank in Lao PDR, additionally all sales and purchase payments shall be made through the bank. 
- Have a Sales and Purchase agreement with a fuel import-export company, and/or fuel driller and manufacturer.
- Have a reserve of fuel in the case of emergency for at least 10 days depending on the averaged daily supply of the previous year in order to supply to their own distribution agents and gas stations.
- Have a capacity to import and distribute fuel of at least 50 million liters per year.
- Have a registered trademark of the enterprise in accordance with the laws.
- Have a fuel depot with the company trademark, and a capacity to store the fuel for 1 million liters or over.
- Have at least 10 fuel transporting vehicles belong to their own company or company group; Each vehicle shall meet required technical standards, be registered and inspected through the relevant sector, attached with a logo and color of the company.
- Have their own invested gas stations as well as gas dealers as defined by the fuel management authority.
- Have testing instruments and octane meter for quality of the fuel as defined by the Ministry of Science and Technology.
- Have at least 2 staff who obtained a certificate of training related to the fuel business certified by the fuel management authority.
- Have insurance in accordance with the insurance law.
- Have a registered capital of 50,000,000,000 LAK or over, including the working capital of 5,000,000,000 LAK or over.
Additional Comment
The inspection is not a part of the review process for the issuance of the license.

LEGAL FRAMEWORK
Name Number Date Comment
Decree on Fuel Business 331/PM 27.10.2017 Part II Establishment and Operation of Fuel Business Chapter 1: Establishment of Fuel Business (Article 6 - 8) Chapter 3: Operation of Fuel Distribution Business (Article 19 - 23)
Instruction on Licensing the Business Activities of Industry and Commerce Sector 0045/MoIC.DERM 18.01.2019
Instruction on the Implementation of some Articles content in Decree on Petroleum Business No. 331/PM, dated 27 Obtober 2017 0521/MOIC.DDT 02.05.2018
Decision on Enterprise Registration 0023/MoIC.DERM 09.01.2019
Decision on the Business Activities of the Ministry of Industry and Commerce that requires Business Operating License 0044/MoIC.DERM 18.01.2019

REQUIRED DOCUMENTS FORMALITIES - First time
Name Type Comment
Environmental Compliance Certificate (ECC) Formality
                                                                         
Construction Permit Formality
                                                                         
Certificate of Tax Registration ID  Confirmative act
                                                                         
Social and Environment Certificate Confirmative act
                                                                        of the fuel depot 
Certificate of Fire Safety Inspection for Fuel Depot Confirmative act
                                                                         
Enterprise Registration Certificate Confirmative act
                                                                         
Certificate for the Membership Enrolment in Fuel Association Confirmative act
                                                                         
Certificate of Passing the Training related to Fuel Business Confirmative act
                                                                        issued by the fuel management authority 
Bank Account Confirmative act
                                                                        with the bank in the Lao PDR  
Photo (3x4) Confirmative act
                                                                        2 photos of the director or manager 
List of Assets of the Company Confirmative act
                                                                        including the list of fuel depot, vehicles, quality control machines 
Certificate of Construction Accuracy Confirmative act
                                                                        of the fuel depot 

REQUIRED DOCUMENTS FORMALITIES - Renew
Name Type Comment
 
Mean of presentation
Means of presentation At the Authority Offices
Address of authority Department of Internal Trade, Ministry of Industry and Commerce
Processing Time (Day(s)) 30 The review process of the application is defined in the legislation. After receiving all required documents, the Ministry of Industry and Commerce shall work with the relevant sectors to inspect a company within 5 working days. Once the inspection is successfully conducted and the documents are complete, the license shall be issued within 30 working days.
 
RENEWAL INFORMATION
Does the formality have a validity or an expiration date? YES
How long will the formality be valid for? (in months) 36
What is the process and conditions to get the formality?
What is the process and conditions to renew the formality? The renewal application shall be submitted 90 days prior to its expiry date as the following conditions: - Have a business license for a domestic distributor company. - Invest and disburse the registered capital as defined in Article 7, clause 1 of Decree No. 331/PM. - Hold accounts in accordance with the laws - Have a deposit account with a bank in Lao PDR, additionally all sales and purchase payments shall be made through the bank. - Have a Sales and Purchase agreement with a fuel import-export company, and/or fuel driller and manufacturer. - Have a reserve of fuel in the case of emergency for at least 10 days depending on the averaged daily supply of the previous year in order to supply to their own distribution agents and gas stations. - Have a capacity to import and distribute fuel of at least 50 million liters per year. - Have a registered trademark of the enterprise in accordance with the laws. - Have a fuel depot with the company trademark, and a capacity to store the fuel for 1 million liters or over. - Have at least 10 fuel transporting vehicles belong to their own company or company group; Each vehicle shall meet required technical standards, be registered and inspected through the relevant sector, attached with a logo and color of the company. - Have their own invested gas stations as well as gas retailed stations as defined by the fuel management authority. - Have testing instruments and octane meter for quality of the fuel as defined by the Ministry of Science and Technology. - Have at least 2 staff who obtained a certificate of training related to the fuel business certified by the fuel management authority. - Have insurance in accordance with the insurance law.
 
ISSUING FEES
Has application fees? Service fees Certificate fees Application fees Total fees
NO 0.00 0.00 0.00 0.00
Comments
Currently, there is no fee collected and defined in any legal act.
 
RENEWAL FEES
Has renewal fees? Service fees Certificate fees Renewal fees Total renewal fees
NO 0.00 0.00 0.00 0.00
Comments
Currently, there is no fee collected.
     
 

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