Situated in Southeast Asia, Myanmar shares borders with India, Bangladesh, Laos, Thailand, and China, offering easy access to the markets of these neighbouring countries. Home to over 100 ethnic groups, the country's diversity creates a lucrative market for new businesses. With an agro-based economy and potential growth in tourism, major infrastructure, financial services, and IT services, Myanmar is an attractive destination for investors. Recent economic policy changes have further enhanced its business environment. This article outlines the legal requirements for registering a company in Myanmar.

Benefits of Starting a Business in Myanmar

Starting a company in Myanmar offers several advantages:

• Strategic Location: Access to markets in neighboring countries.
• Inexpensive Labor: Lower operational costs due to affordable labor.
• Untapped Market: A large, growing market with over 50 million people.
• Low Communication Barriers: Minimal language barriers facilitate business operations.
• Full Foreign Ownership: Many sectors allow full foreign ownership.

Requirements for Starting a Business in Myanmar

To set up a business in Myanmar, investors must comply with government regulations. Here are the essential steps and requirements:

Work Pass

Several types of work visas are available for starting a business in Myanmar:

• Single Entry Business Visa: Costs $50, grants a 70-day stay with a single entry, and is extendable.
• Multiple Entry Business Visa: Granted after a single entry visa, allows multiple entries for three months ($200), six months ($400), or one year ($600), and is extendable.
• Employment Visa: Costs $50, grants a 70-day stay, and can be extended for company employees.

Company Name

The incorporation process begins with registering the company name:

• Name Registration: Submit a name check form to the Directorate of Investment and Company Administration (DICA).
• Approval: Upon approval, the company can register the name.

Company Address

A registered Myanmar address is required:

• Physical or Virtual Address: Depending on business type and functions.
• Office Space Rental: Foreign-owned companies can rent office space for up to two years, with extensions needing approval.

Business Capital

The registration fee depends on the business type:

• Private Company: Registration fee of 150,000 kyats ($71.47).
• Public Company: Registration fee of 2,500,000 kyats ($1191.18).
• Capital Requirements: No general lower limit, but service-related companies need $50,000, and manufacturing-related companies need $150,000.

Directors and Company Secretary

Myanmar allows full foreign ownership:

• Minimum Requirements: At least two directors and two shareholders for private limited companies, with up to 50 shareholders allowed.

Types of Business Structures in Myanmar

Several business structures are available:

• Sole Proprietorship: Myanmar sole business registration is suitable for small businesses, with one owner.
• Public Company Limited by Shares: Requires at least three directors (one Myanmar citizen) and has publicly traded shares.
• Private Company Limited by Shares: Requires one director and one shareholder, with up to 50 shareholders allowed.
• Branch Office: An extension of a foreign company, requiring extensive paperwork.
• Partnership: Owned by a group of individuals, with unlimited liability.
• Joint Ventures: Foreign companies partnering with local companies, with local investors holding at least 20% ownership.

Company Registration Process

The company registration process in Myanmar involves several steps:

Step 1: Name Request

• Name Registration: Submit a name request to DICA and register the approved name.
• Appoint Directors and Shareholders: Fulfill the necessary appointments.

Step 2: Registering with MIC and DICA

• MIC Registration: Submit a proposal to the Myanmar Investment Commission (MIC) for a Foreign Investment Permit.
• DICA Registration: Submit a form to DICA for temporary licensing, confirm the office address, and receive a Permit to Trade and a Permanent Registration Certificate.

Step 3: Post-Registration Process

• Submit Shareholder and Director List: Provide the official list to authorities.
• Acquire Company Seal: Obtain an official seal for the company.
• Register for Tax and Social Security: Complete tax registration and employee social security sign-up.

Cost of Incorporating a Company in Myanmar

• Capital Requirements: Minimum capital must be brought to Myanmar (50% initially, the rest within a year).
• Pre-opened Bank Accounts: Funds must be deposited in registered Myanmar banks.

Foreigners and Business Permits

• Visa Requirements: Obtain single or multiple entry visas.
• Permits: Secure necessary permits from MIC and DICA.
• Permit to Trade: Valid for five years, with renewal required six months before expiration.

Government Assistance

The Myanmar government offers tax exemptions and incentives to foreign-owned businesses, including:

• Income Tax Exemptions: Up to five years, extendable.
• Exemptions for SEZ Businesses: Up to seven years for businesses in exempted zones.

Conclusion

Starting a business in Myanmar offers strategic advantages and a growing market. By adhering to legal requirements and leveraging government incentives, investors can successfully establish their business in this promising country. Consulting with experts can further streamline the process, ensuring compliance and maximizing benefits.

Learn More: How to Register a Company in Sri Lanka