Form E MyanmarE Myanmar form
Steps to start a company abroad in Myanmar
There are two ways for overseas companies to invest in a country that is known for its abundant reserves of raw materials and cheap labor. Companies requiring significant investments, such as production, building, mines, tourism, farming and transport, must be regulated under the Myanmar foreign investments law (MFIL).
Under the Myanmar companies act (MCA), however, international trade enterprises and services enterprises may apply for registration. Current legislation restricts the commercial activity of non-German enterprises. A hundred per cent of international corporations and jointventures with the Myanmar authorities or Myanmar citizens can be incorporated under the MFIL. In the case of jointventures, the proportion of the company's equity is at least 35 per cent.
In spite of the US$500,000 or higher required equity, organizations typically spend between US$1,000,000 and US$2,000,000, according to the scale and type of investments. Under the Special Company Act (1950), in the case of jointventures with the Myanmar federal administration, enterprises may choose the designation of a domestic enterprise.
Key steps for the registration of a corporation under MFIL are: MFIL businesses must obtain approval from the Myanmar Investment Commission (MIC) before they can benefit from a three-year exemption (i.e. the building time or the first three financial years). Qualified enterprises are exempted from payment of duties during this first time.
The main documentation needed for this procedure is: Except for jointventures with the goverment, which are considered to be a municipal enterprise, each economic unit requires a "permit to trade" from the Directorate of Investments and Company Registration (DICA). You will need the following documentation to apply for "Permit to Trade":
As set out in the "conditions", the minimal amount of funds must be transferred to Myanmar in two instalments: the first half before the grant of the license and the second half within twelve month of the grant. At the beginning, the funds should be transferred to either Myanmar Investment & Commercial Bank or Myanmar Foreign Trade Bank.
DICA grants the "Permit to Trade" to the customer upon receipt of the acknowledgment of account. You will need the following documents: Approximately 4-6 month is the period for setting up a business under MFIL. There is a MCA requirement for a $50,000 USD to be invested in a global MCA services organization. Under this Act, the enrollment procedure comprises the last two stages of the formation of the MFIL Society.
Within the framework of the MCA, the "permit to trade" is for three years. The renewal of the "Permission to Trade" will require the same ( "current") documentation as in the initial request. Under the MCA, the foundation phase lasts 2-3 month.