Myanmar MarketThe Myanmar Market
Yangon, Myanmar Marketing Research & Development Ltd.
Since 2007 MMRD has been on the verge of gaining an insight into Myanmar's world. Helping our customers to seize future potential for expansion and shaping the Myanmar of the future. Headquartered in Yangon, we are a market research leader. MMRD's Customizing Research provides organizations with usable information to be successful in the market in Myanmar.
With the help of solid information combined with our knowledge of Myanmar's contexts and businesses, we present in-depth views of the state. The MMRD research is focused on the areas of logistic, manufacturing and the Myanmar people market (salary survey). With our 20 years of know-how and our practical knowledge, we provide realisable views into the relevant industries.
What is the market in Myanmar?
XYZ BV is a Netherlands based enterprise providing service agencies to its customers in various European Union states. Following its success in Singapore, XYZ BV is now looking for a market entry in Myanmar. XYZ BV approaches us with the request to establish a firm in Myanmar or to begin a market research by first having a specialist sent to Myanmar.
Other points include the most appropriate corporate structure for your investments strategies, barriers to entry of overseas businesses and the corporate, fiscal and labor laws and practices regarding overseas and locally applicable labor laws in Myanmar. In order to find the right way to set up a firm in Myanmar, we consulted XYZ BV on the pros and cons of different forms of businesses such as representation, MIC or non-MIC in terms of financial demands, investor security and taxation.
Under the Myanmar Investment Law or the Myanmar Companies Act, aliens such as Mr. M., the Chief Executive Officer of XYZ BV, may establish a wholly foreign corporation. When XYZ BV establishes a corporation under the Companies Act, the minimal registered equity is $50,000 for services and $150,000 for production/businesses.
In addition, it is necessary for a non-German entity to obtain a licence from the Directorate of Investment and Corporate Administration (DICA). DICA authorisation can normally be renewed every five years. According to the FOREX (FIL), it is at the sole discretion of the MIC (Myanmar Investment Commission) to determine the minimal equity and also the choice is determined by the requested commercial activity.
Prior to establishing a non-German enterprise in Myanmar, it must obtain a trade permit from the Ministry of National Planning and Economic Development before applying to the Registrar of the Commercial Registry Office for it. The trading licence, however, is not to be interpreted in terms of good faith and means "permission to act".
Even though the authorities have not announced such a license, no certificate of registry or DICA permits are currently granted to a non-German commercial enterprise (distribution and sale of products). Therefore, trade activity is still limited to Myanmar's people. Therefore, if trade is an important and important part of XYZ BV, they should consider establishing a whollyowned local corporation under the Myanmar Companies Act, which they may undertake to act as agents and/or distributors for their goods imports.
XYZ BV as a non-German enterprise must take into consideration that not all industries are open to non-German investment. On the basis of this fact, we recommend XYZ BV to establish a MIC-approved enterprise under the FIL. In addition, the FIL protects international investments against nationalization and dispossession, which is also legally ensured.
The rental term is up to 50 years, after which the Myanmar Investment Commission can approve an additional 10 years, which in turn can be extended for a further 10 years. The following articles will provide advice to XYZ BV on employment and migration matters. The Strohal Legal Group, established in 1979 by Dr. Theodor Strohal, is a legal practice that offers its customers a very personal approach.
The Strohal Legal Group has a good name in Europe, Southeast Asia and the Middle East / GCC with a clear emphasis on global and cross-border operations. Strohal Legal Group offers its Myanmar service in association with U Min Sein under the name U Min Sein & Strohal Associates Law Company.