The Kyaukphyu SEZ is located in the restive Rakhine State of Myanmar; the zone consists of Industrial parks and a deep-sea port developed in several stages.
Strategically located in South East between two large Asian economies China and India, Myanmar is a unique country with vast natural resources, large market and excellent access to the sea. The nation maintains friendly relations with its neighbours gradually opening up the economy since the civilian government is determined in boosting the economic growth and develop the infrastructure which has been neglected.
Myanmar has tremendous potential to become one of the leading economies in South East Asia actively competing with Thailand, Indonesia, Vietnam and Laos with their abundant natural resource, a large pool of cheap human resource, along with the extensive governmental support for foreign investment. The government actively supports foreign companies and individuals to invest in the country, to streamline the procedures the Myanmar Investment Committee has been set up. The governmental agency has structured several business entities for incorporating your company as a foreigner in Myanmar notably, here the committee supports the investors by offering permits, tax incentives, and facilities that accelerate business growth.
Myanmar Special Economic Zones Law
According to the goals of the Myanmar government to accelerate growth, develop infrastructure and enhance the competitiveness of the nation on a global level the special economic zone laws were implemented to create “Special Economic Zones”. The SEZ’s are purpose-built zones with demarcated boundaries and exclusive authorities which facilitates the establishment of industrial parks, and companies with interconnected logistics networks.
Why Setup Your Business in Kyaukphyu SEZ?
Kyaukphyu Special Economic Zone was planned with an objective to improve the economic growth in the Rakhine region. The Special Economic Zone is being set up for the economic development of Rakhine State, to create job opportunities for local residents, and to support the development of transportation and production.
The Kyaukphyu SEZ is considered as a zone separate from the country as the rules and regulations in the SEZ are different from the Mainland. The SEZ has an independent authority that allows businesses to register, and operate in the zone successfully by creating business-friendly laws that are focused on attracting international entrepreneurs, businesses and organisations to start their business operations in the region.
The zone is authorised to give its permits to the companies operating the zone. The Kyaukphyu is weel-endowed with natural deep water port, abundant natural and marine resources. Moreover, the companies have the advantage to construct their facilities that are specific and tailor-made to the business as the requests are immediately assessed allowing the company to expand their operations extensively. There is sufficient land for future developments including industrial, labour and residential areas.
Unique Features of Kyaukphyu SEZ
Unlike Myanmar’s other SEZs, where the government is heavily involved, Kyaukphyu is a business-to-business venture. The Kyaukphyu SEZ, which is setup to provide a direct channel connecting China, India and the ASEAN countries. Kyaukphyu SEZ consists of three components, which includes the development of a deep-sea port, industrial park and an integrated residential area. The project area of the SEZ is expected to be more than 4,000 acres.
The Kyaukphyu SEZ is designed to be a multi-industry park that is segregated based on the type of industry, products produced and materials processed. The SEZ is distributed into several industrial parks that are specific to them. Structuring the SEZ based on industrial park improves the efficiency of the companies operating in the massive area. The proper clustering of industries in Kyaukphyu SEZ can help the companies in the zone by
- Availing facilities that are essential for each type of business
- Helping them manage the operations effectively
- Taking lesser turn-around time in manufacturing
- Assists in distribution of raw materials and reduces the logistics constraints (i.e., chemical processing industry units are placed in a single industrial park making it easier for companies operating in the park to transport chemicals stage by stage and allows them to establish purpose-built infrastructure such as pipes, tanks and silos while helping them in maintaining them with specialised teams)
Export Driven Growth
The Kyaukphyu SEZ is designed with a framework for encouraging export-driven growth by setting up general manufacturing, automobile and industrial processing infrastructure. The SEZ in Rakhine state is earmarked for export-driven market products as the zone is identified as a potential supply base of the Chinese Belt and Road Initiative which is envisioning to create an overland and sea links from China to Europe following the ancient Silk Road.
The location of the zone gives it a competitive edge over the other SEZ as the close proximity to sea gives companies operating in the region to export their goods to worldwide destinations. The strategic advantage makes the Kyaukphyu SEZ an ideal location for producing manufactured goods, assembling components, automobile, processing chemicals, exporting agro-products, logistics, services and systems making it a bustling city for international trade and commerce.
Deep Sea Port Facility
Lying close to the Bay of Bengal the Kyaukphyu SEZ enjoys a strategic advantage as the goods and products produced in the Industrial zone can be quickly shipped off to the international market, thereby ensuring the competitive business advantage to the companies located in the region. In 2015, a consortium led by CITIC won the tender to develop the deep-sea port and industrial estate projects. The framework agreement aims to implement the Kyaukphyu Deep Sea Port project, according to international norms.
Business Sectors in Kyaukphyu SEZ
- General manufacturing
- Automobile assembly
- Electronics manufacturing
- Construction materials
- Chemical Processing
- Oil & Gas
- Agro products processing
- Shipping & Logistics
- Import & export trading
Setting up Your Business in Kyaukphyu SEZ
For setting up a business in Kyaukphyu SEZ, there are specific procedures to be followed before incorporating your company in Myanmar. All the companies registered in Myanmar are done according to the Myanmar Companies Law.
Types of Business Entities in Myanmar
Steps for Starting your Company in Myanmar
- Conduct name check at the Company Registration Office (CRO) at the Directorate of Investment and Company Administration (DICA)
- Request for a business incorporation certificate by filling the forms and sending supporting documents to the DICA
- Get your documents translated to English of the papers are in a different language by a certified English translator and get those documents notarised by Myanmar Embassy
- Get your financial documents signed by a certified public accountant
- Get your legal business documents signed by a certified public lawyer
- Pay the stamp duty fees and the registration fees to DICA
- Open a bank account for your Company in Myanmar
- Obtain the certificate of incorporation
- Submit the Certificate of Registration documents to DICA along with the particulars of directors, shareholders, investors, managers, and managing agents. In case if the owner is an individual entrepreneur then have to fill and submit Form VI (Return of Allotments)
- Obtain a seal or rubber stamp for your registered company
- Register your company with the Tax Office
- Register your business for commercial tax (i.e., tax similar to VAT or GST)
- Registration of your employees with the Labour Office in the nearest township
- Registration with the Social Security Board for social security benefits
Documents Required for Business Incorporation in Myanmar
- Application cover letter
- Declaration of registration (Form 1)
- Location of the registered office form
- Statement of the Company’s objectives
- Director’s details (Form 26)
- Memorandum of Association
- Articles of Association
- Copies of Passport of directors and investors if the individuals are non-Myanmar citizens
- A valid Myanmar visa for operating the company in Myanmar or details of the Nominee director who is a citizen of Myanmar
- Details of the deal or project and the partners if the company is formed as a Joint Venture (JV)
While planning to start a company in Myanmar, you can choose the type of business entity based on the kind of industry, business operations, limitations and restrictions according to Myanmar laws, your company's operational capabilities and investment capital. Contact us for best business structure for your company in Kyaukphyu SEZ. Our team would be happy to guide you in understanding the business environment, capital and partnership requirements, and legal aspects of setting up a business in Myanmar.