Kyaukphyu Special Economic Zone

Myanmar is a unique country with abundant natural resources, a large market, and excellent access to water bodies. The country maintains friendly relations with its neighbours and provides various business opportunities, licenses, tax incentives, and facilities that accelerate business growth. The government actively supports foreigners and encourages them to start businesses in special areas called the Kyaukphyu Special Economic Zone.

Why Setup Your Business in Kyaukphyu SEZ?

The Kyaukphyu Special Economic Zone (SEZ) was planned with the objective of boosting economic growth in the Rakhine region. This SEZ creates job opportunities for residents and supports the development of transportation and production infrastructure.

Kyaukphyu SEZ features business-friendly laws designed to attract international entrepreneurs, businesses, and organizations to establish operations within the zone.

Unique Features of Kyaukphyu Special Economic Zone

Unlike Myanmar’s other SEZs, Kyaukphyu is set up to provide a direct channel connecting China, India, and the ASEAN countries. Kyaukphyu SEZ consists of three components: the development of a deep-sea port, an industrial park, and an integrated residential area.

1. Industrial Parks

The Kyaukphyu SEZ serves as a multi-industry park, segregating areas based on industry type, products produced, and materials processed. It organizes several industrial parks, each dedicated to a specific type of industry. Structuring the SEZ based on industrial parks was done to help improve the efficiency of the companies operating in the massive area. The clustering of industries in Kyaukphyu SEZ helped companies by:

• Availing facilities that are essential for each type of business
• Helping them manage the operations effectively
• Taking lesser turn-around time in manufacturing

2. Export Driven Growth

The Kyaukphyu Special Economic Zone is designed to foster export-driven growth by establishing general manufacturing, automobile production, and industrial processing infrastructure. Its strategic location near the sea gives it a competitive edge over other SEZs, enabling companies in the region to export goods worldwide. This advantage positions the Kyaukphyu SEZ as an ideal hub.  As a result, Kyaukphyu SEZ is set to transform into a bustling centre for international trade and commerce.

3. Deep Sea Port Facility

Located close to the Bay of Bengal, the Kyaukphyu Special Economic Zone benefits from the strategic location. Due to this advantage, companies are able to ship the goods they produce to international markets. Ensuring a competitive business advantage for 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

The leading business sectors are:

• General manufacturing
• Automobile assembly
• Electronics manufacturing
• Construction materials
• Chemical processing
• Oil and gas
• Agro products processing
• Shipping and logistics
• Import and export trading

Steps for Starting Your Company in Kyaukphyu Special Economic Zone

You have to follow the steps below to set up your company in the Kyaukphyu SEZ.

Step 1: Conduct a name check to ensure that an already existing business is not using the name you have chosen. Note that the name should not be offensive and should aptly represent your business activities.

Step 2: Fill out an application form and send out the supporting documents to the respective authority to obtain your certificate of incorporation.

Step 3: Pay the stamp duty fees and the registration fees to the Kyaukphyu Special Economic Zone authority.

Step 4: Open a bank account for your company.

Step 5: Obtain a seal or rubber stamp for your registered company.

Step 6: Register your company with the Tax Office.

Note: The steps mentioned above are generic guidelines. Contact a business consultant to learn about the authorities and to avail yourself of the expertise guidance required to incorporate your business.

Documents Required for Business Incorporation in Kyaukphyu Special Economic Zone

The following are the documents required to incorporate your business into the Kyaukphyu SEZ:

• Application cover letter
• Proof of registered office address
• Statement of the company’s objectives
• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Copies of the passports of directors and investors ( in case they are non-Myanmar citizens)

When planning to start a company in the Kyaukphyu SEZ, you can select the type of business entity based on your industry, business operations, and Myanmar's legal limitations and restrictions. Additionally, consider your company's operational capabilities and investment capital. Contact us today, and we will help you determine the best business structure for your company in the Kyaukphyu Special Economic Zone. Our team is here to assist you in understanding the business environment, capital and partnership requirements, and the legal aspects of establishing a business.