Myanmar is a Southeast Asian country with vast lands and a large population which is still increasing, and it has recently opened up to foreign countries and foreign companies to set up its business in the country. This makes it a perfect place for budding entrepreneurs. The recent political turmoil and the change in the government have made the country more accessible to foreigners. They can take advantage of various policies and incentives which the government of Myanmar provides if they set up their business in Myanmar.
The process of Myanmar company incorporation is carried out by the Directorate of Investment and Company Administration (DICA) per the Myanmar Companies Law 2017 (MIL). All the proposals related to foreign investment in Myanmar are dealt with by the Myanmar Investment Commission (MIC). The work of MIC will start only after the owner of the company receives the certificate of company incorporation.
Let’s look at the company setup process in Myanmar.
Procedure to Setup a Company
All the foreign-owned companies and any joint ventures with Myanmar are registered under MFIL. The main steps of registering a company under MFIL can be found below:
1.Applying for a Permit from MIC
A company can enjoy a tax holiday of a minimum of three years to seven years, depending upon the location and the nature of the company being set up in the country, but to receive the tax holiday the company must be registered with the Myanmar Investment Commission (MIC).
To receive the permit, the company needs to submit certain documents such as:
- Form I which will consist of a proposal to the Foreign Investment Commission.
- In the case of a joint venture (JV), draft the necessary contract.
- Form the Article of Association and Memorandum of Association
- The Cash Flow Statement, Feasibility Study and Profitability Projection Statement for the project period or the first ten years after the incorporation of the company.
- A report from the bank in which the account has been opened stating the financial position of the business.
- Maps or blueprints of all the lands acquired on a lease of bought
2. Applying for the "Permit to Trade."
The local companies and the companies having a joint venture with the government do not require a Permit to Trade. Every other company needs to apply for a permit to trade as it will allow the company to conduct trade within the country. This permit is distributed by the Directorate of Investment and Company Registration (DICA).
The documents required to be submitted for getting a permit to trade are:
- A complete summary of all planned business and economic activities
- Total expenditure was done in the first year of operation
- Bank Statements and Reports providing evidence about the financial situation of the company to all the subscribers of the Memorandum & Articles of Association.
- Power of Attorney in favour of the individual who signs the applications or one of the directors of the company.
- If any of the parties is a company, the resolution of the board of directors is required to Incorporate a Company in Myanmar
- In case the company is incorporated as a subsidiary of any foreign company, you are required to submit the signed accounts for the last two years of the parent company. These accounts should be bound and published.
On approval, DICA will also send the conditions to the support of the said permit. These conditions must be signed and returned to DICA. After getting the permit, minimum capital must be injected in the company in two instalments. The first instalment should be paid before the issuance of the permit, whereas the second instalment should be paid within twelve months of issuing the license.
3.Application of Incorporation
After receiving the Permit to Trade, the final step in the incorporation must be taken, which is the submission of the incorporation application of the company. This application should be submitted with a photocopy of the Permit to Trade received. Along with the permit, many documents are required to be submitted, such as:
- A list of people who are approved officials of the company
- Details of all the Directors of the company which will include their address, occupation and nationality
- Copies of the passport of the directors of the company
- List of the current shareholders and the share that they hold
- Particulars of each of the shareholder including their address, occupation and nationality
According to the Myanmar Companies Act, the minimum investment to be made for a foreign service company is 50,000 dollars. The Permit to Trade is valid for three years and the renewable of the “Permit to Trade” will require the submission of the latest and updated documents which were submitted with the original documents. The complete incorporation can take around 2-3 months.
MyCO – Myanmar Companies Online
To make the Myanmar company registration process more accessible, the government of Myanmar has initiated a separate electronic platform named as MyCO – Myanmar Companies Online. This platform can help you in the incorporation of the company in lesser time and less physical documents. It is maintained and upheld by DICA as a public registry for all possible entities which are registered and can be accessed by the general public at any time in the 24 hours.
The company incorporation process is a lot easier if you have a helping hand. At Business Setup Worldwide we try our best to provide you with the latest and the best service. We are one of the best business setup consultants in UAE, and our business experts are well-versed with all the customary laws in Myanmar. To know more, contact us, we’d be glad to assist.