Myanmar (Burma) is a Southeast Asian nation bordering India, Bangladesh, China, Laos, Thailand, and other ASEAN Countries. A state is known for abundant natural resources and greenery, Myanmar offers ample reasons to invest in the country. Its business-friendly regulations and peaceful cultural milieu make company incorporation in Myanmar a lucrative proposition. Despite political issues, the land of the young generation is looking forward to mightier progress.
Here are the top 7 reasons to invest in Myanmar.
1. Tax Exemptions
Myanmar Investment Law (MIL) provides for several tax incentives to investors. Whether or not an investor is eligible for tax incentives depends on the nature and location of investment, additional limits and other criteria.
- According to Myanmar Investment Commission (MIC), investors are exempted from income tax for 3, 5 or 7 years, depending on the location and the sector they invest in. Zones are classified based on the development of the township. Investing in a promoted sector implies 7 years of tax exemption, while that in a moderate township gets one exemption from tax for 5 years. Investing in highly developed zones leads to 3 years of tax exemption.
- Investors can enjoy exemption from commercial tax on goods that are manufactured for export.
- For companies registered under the Myanmar Foreign Investment Law, imported raw materials are exempt from from customs duty or other internal taxes for the first three years of commercial production following the completion of construction.
- Export investment business get exemption from customs duty and other domestic taxes on raw materials and semi-finished goods which are re-imported for the production of export goods.
2. Abundant Natural Resources
Myanmar was known as Swarnabhumi or ‘Land of Gold’ because of its natural resources. In 2017, Myanmar produced 700 billion cubic feet of natural gas. It also tops in the production of jade and other precious stones. Myanmar exported USD 23 billion worth of jade last year, which accounts for a major revenue generation source for the government.
3. Young and Educated Population
Myanmar has a population of 52.4 million, of which 69.5% comes under the working age group with an adult literacy rate of 80%.
4. Geographical Location
Myanmar is surrounded with major business-oriented countries like India, China, Thailand and other international markets through port along the Bay of Bengal and the Andaman Sea.
5. Land Lease
A foreign investment company can lease land for up to 50 years with the option of two 10-year extensions, granted to MIC permit holders. Lease years can be extended with prior permission of the Myanmar Investment Commission.
6. Economic Reforms
Myanmar has emerged from a scarcely developed country into one of the fastest growing economies. From a GDP growth of 5.4% in 2012 to 7.4% in 2014, the economy has grown at a healthy pace. It clocked a growth of 7.3% in 2015-16. Foreign investment in Myanmar has increased enormously since 2011 - reaching $9.5 billion in 2015-16. FDI is expected to further grow rapidly in response to the lifting of additional United States sanctions and rising interest from China.
7. Foreign Employment
Any number of expatriates can be appointed by foreign companies registered under the Companies Act (CA) in Myanmar. But, companies have to appoint the citizens of Myanmar for honorary sponsorship. Of late, the government has made life for expatriates easier by introducing business visa which allows multiple entries in a year for 600 US dollars.
Apart from these, the labour cost in Myanmar is one of the most economical in Southeast Asia, and the beauty of the country invites tourists from all over the world – making for scope investment in the tourism sector as well. So, it is the right time to carry out your investment strategy in Myanmar. This growing economy is bound to favour you with its bounteous resources and friendly environment.
Business Setup Worldwide is a platform to help you build and grow your business internationally. If you’re looking to set up your business in Myanmar, our business advisors can guide you with the company registration process and provide business support services like accounting, bookkeeping, intellectual property protection and tax consulting. For any information on company incorporation in Myanmar, do contact us – we’d be glad to assist!