Why Set Up a Business in Myanmar?
- Myanmar is blessed in terms of natural resources, and has an educated human resource base.
- As a developing nation, Myanmarbenefits from the Generalized System of Preferences (GSP) in trade with most developed nations by being allocated lower import duties and not being subject to certain quotas.
- Fully foreign owned companies are permitted to be set up in Myanmar.
- Myanmar is well connected to other Asian countries through sea and air.
Process of Registering a 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.
- Apply for Myanmar Investment Commission’s (MIC) permit:One needs to apply for a permit 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 3 years of business).
- Apply for 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
- 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.
- 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 10 years, with a cash flow statement
- Land lease and property documents
- Bank reference to verify financial standing
- Annual reportsof the last 2 years
- Performance guarantee
Documents Required for Application for Permit to Trade
- 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 last 2 years (authenticated and legalized), 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 authorized to accept official notices