The ceremony last week was attended by Lae District administrator Robin Calistus and speeches were made by officials Dickson Guina, Bart Ipambonj and LCA chairman John Rosso with the keynote address by Inter-Government Relations Minister Kevin Isifu.
The Lae Chamber of Commerce and Industry said that the LCA is an umbrella, controlling body overseeing the services, improving revenues and improving infrastructure.
The LCA is empowered to "collect, manage and monitor effectively and spend wisely the rates and fees of law-abiding corporate and private citizens".
The LCA also provides security of fund management and structure within the Lae local government administration.
"This will enable a more liveable, enjoyable city which is competitive, innovative and creative. A city which embraces cultural exchange and an opportunity to make a difference," said Rosso.
"Not immediately but it is a quantum step toward a better city," said Rosso. The new LCA interim chief executive officer is Neil Ellery.
The LCCI said it looked forward to working alongside the LCA to continue "to make Lae better".