Myanmar is opening up its economy after the reforms have initiated a quasi-democratic government which supports economic growth and infrastructural development in the country. The nation is at a prominent political and economic crossroads, spearheaded towards reform and economic development. By taking the path towards a more liberalised economy, the government has allowed foreign entrepreneurs, investors, business leaders and international organisations to come and start their business operations in Myanmar.
The government is keen on promoting foreign direct investment into the country by forming effective, and transparent business-related, company formation laws that permit international players to enter into the market thereby accelerating the growth of economy, developing the infrastructure by their technological prowess, provide employment to citizens while promoting the international trade and commerce with other countries.
In the current situation, the government has set up agencies, authorities, organisations and committees for streamlining the process of business incorporation, setting up rules and regulations for international business operations, implementing legal business policies, issuing permits and licenses for companies, and structuring the foreign investments into Myanmar.
Major Laws that Support Foreign Companies in Myanmar
- Myanmar Company Laws
- Myanmar Investment Laws
- Myanmar Trademarks Laws
- Myanmar Special Economic Zone Laws
- Myanmar Taxation Laws
- Myanmar Labour Law
Governmental Organizations that pertain to Business
- Directorate of Investment and Company Administration (DICA)
- Company Registration Office (CRO)
- Myanmar Investment Management Committee
- Ministry of Commerce
- Thilawa Special Economic Management Committee (TSMC)
- Kyaukphyu Special Economic Zone Management Committee (KSMC)
Why Register your Company in Myanmar?
- Strategic location in South East Asia connecting vibrant economies such as China, India, Bangladesh and Thailand
- Myanmar is abundant in terms of natural resources and has a significant amount of precious metals, stones and gems
- Massive market with tremendous growth potential
- As a developing nation, Myanmar benefits from the Generalized System of Preferences (GSP) in trade with most developed countries by being allocated lower import duties and not being subject to certain quotas
- Wholly foreign-owned companies are permitted to be set up in Myanmar
- Myanmar is well connected to other Asian countries through sea and air
Types of Business Structure Available in Myanmar
Myanmar has revamped its business laws after reforms by implementing the "Myanmar Company Laws" which gives a new framework for company registration, shareholding
- Public Limited Company (Limited Liability Company)
- Private Limited Company (Limited Liability Company)
- Private Company Limited by Shares
- Private Company Limited by Guarantee
- Branch Office
- Representative Office
- Joint Venture or Partnership
- Business Association
Best Locations for Starting your Business in Myanmar
Process for Registering your Company in Myanmar
For Myanmar company registration, a business needs to be registered under the Myanmar Foreign Investment Law (MFIL). Following are the steps listing how to register a company under MFIL.
1.Apply for Myanmar Investment Commission’s (MIC) permit
One needs to apply for a license from the MIC. During this initial period, qualifying companies are exempt from paying customs duty and enjoy a 3-year tax holiday (which is the period of construction or the first three years of business).
2.Apply for a permit to trade
Unless it is a joint venture with the government, a company should apply for a ‘permit to trade’, issued by the Directorate of Investment and Company Registration (DICA).On receipt of approval of the Permit to Trade application, the conditions attached must be agreed, signed and returned to the DICA
3.Purvey the required capital
The minimum capital, as required for the respective type of company, must be submitted in 2 instalments: the first half before issuance of the permit, and the second half within twelve months of issuance. The initial capital should be remitted either to the Myanmar Investment & Commercial Bank or to the Myanmar Foreign Trade Bank. The DICA issues the ‘permit to trade’ after receiving credit advice from the bank.
4.Apply for company incorporation
Apply for company incorporation along with a Xerox of the ‘permit to trade’. The process for company registration in Myanmar can take 4-6 months.
Documents Required for MIC’s Permit
- Proposal to the Foreign Investment Commission in the prescribed format
- Draft contract(s)
- Draft Memorandum of Association (MOA) and Articles of Association (AOA)
- Feasibility study and profitability projection statement for the project period or first ten years, with a cash flow statement
- Land lease and property documents
- Bank reference to verify financial standing
- Annual financial reports of the last two years
- Performance guarantee
Documents Required for Trade Permit
- A summary of intended business or economic activities
- Statement of the estimated expenditure during the 1st year of operation
- Bank references providing evidence of the financial standing of the subscribers to the Memorandum and Articles of Association
- Power of attorney in favour of the individual who signs the applications, in case he or she is not a subscriber to the proposed company’s Memorandum and Articles of Association or one of its proposed directors
- A Board of Directors’ resolution to incorporate a company in Myanmar, in case any of the parties is a company
- Signed accounts of the parent company for the last two years (authenticated and legalised), in case the proposed company is to be incorporated as a subsidiary of an overseas company
Documents Required for Company Incorporation
- Each director’s particulars, including their address, occupation and nationality
- Passport copies of the director(s)
- List of the shareholders and their shareholdings
- Each shareholder’s particulars, including their address, occupation and nationality
- A list of people authorised to accept official notices
Why Choose Us for Incorporating your Company in Myanmar?
We at Business Setup Worldwide help you register your company in Myanmar in a way that is ideal for your business type. Contact us, and our Myanmar team shall help you in getting insights of the business ecosystem in the country and assist you in following all the legal, financial and accounting requirements for your business according to the latest Myanmar laws. It shall be helpful for you to get in touch with us we can provide you with a solution to all the queries regarding business incorporation in Myanmar mainland, SEZ, investment in Myanmar companies and legal obligations for companies in Myanmar.