Myanmar offers untapped business potential with a promising economy and a vast prospective market, making it an attractive destination for entrepreneurs, international investors, and well-established companies looking to expand their operations. Business leaders interested in entering and operating in Myanmar have several options for establishing their presence. One of the most common business structures is setting up a Representative Office in Myanmar.
What is a Representative Office?
A Representative Office (RO) serves as a liaison office, with its activities limited to market research, feasibility studies, and data collection for the head office. ROs are not permitted to engage in trading within Myanmar. However, the following individuals or entities can utilize them:
Representative Office for Individuals and Entrepreneurs
When a foreigner decides to establish a Representative Office in Myanmar, it serves as a gateway to understanding the local market conditions, promoting established businesses from other countries, and exploring business opportunities. This insight is crucial for leveraging lower operational costs, affordable labour, and numerous facilities available for local manufacturing operations.
Representative Office for Corporates
International companies planning to enter the local market can establish a Representative Office in Myanmar to evaluate the feasibility of conducting business by analyzing the market. The RO is permitted to study industry growth, assess profitability, and report the findings to the headquarters. Additionally, a corporate-owned RO can focus on understanding local competition, identifying potential partners, and evaluating other essential business factors such as infrastructure, logistics, and human resources before setting up permanent operations in the country.
Benefits of Establishing a RO in Myanmar
A representative office serves the following purposes:
- It enables the business to conduct market research, perform business analysis, and conduct promotional activities.
- Assists in conducting feasibility studies to understand the ground reality of starting business operations in a jurisdiction.
- RO is used to analyze the scope of business opportunities as a corporation.
- Companies use representative offices as subsidiaries to handle and launch marketing campaigns.
- It helps you find competitors and prospective business partners.
- Representative offices help promote a company or its service in a jurisdiction before setting up operations.
Requirements for Setting up a Representative Office in Myanmar
According to the Myanmar Companies Act, the government has specified requirements for setting up a Representative Office in Myanmar. These are:
- Under Section 27A of the Myanmar Companies Act, the Representative Office must obtain a permit and registration from the Ministry of Commerce.
- If a foreign citizen or non-resident registers a Representative Office in Myanmar, they must appoint a Burmese citizen or a non-Burmese agent. After the appointment, the person must stay in the country for more than 186 days.
- The RO must employ staff of Burmese nationality and register with the Ministry of Commerce in accordance with the laws governing employment.
- If any of the documents required for registration are in languages other than English, you must hire a certified translator. The translator has to translate the official documents into English and get them notarised by the Myanmar Embassy.
Documents Required for Registering a Representative Office
The following documents are required to register an RO in Myanmar:
- Passport copies of each director or owner
- The company’s board of resolution
- Signed document copies stating the office will not trade in Myanmar
- Notarized copy of the foreign company's Memorandum of Association
- Notarized copy of the Articles of Association of the foreign-registered company
- Annual report of the foreign registered company for the last two financial years notarised by the Myanmar Embassy
The location offers tremendous opportunities for investment and growth, making it one of the top contenders for setting up your business offshore. If you're planning to establish a representative office in Myanmar, contact us today. Our team of experts will assist you in understanding the business environment and guide you through the process of registering your business in the country.
