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Why & How to Set Up a Company in Myanmar- a Sovereign Country

Set Up a Company in MyanmarWhy Set Up a Company in Myanmar?

Myanmar Myanmar is a sovereign state which belongs to Southeast Asia. In 2015, Myanmar became a democratic country which lifted the economy of this country, and thus it attracted many investors to set up a company in Myanmar. This is a significant period to invest in Myanmar.

 

Common Business Entities in Myanmar

The common business entities that an investor can choose while setting up a company in Myanmar are 100% foreign entity, joint venture, and distribution arrangements.
1.An entity with 100% foreign equity: This type of business entity allows you to operate as a branch office outside Myanmar. There is 100% ownership of foreign investors if he is the sole proprietor of the business as per Foreign Investment Law.
2.Joint Venture: A partnership type of business entity in Myanmar which is quite easy to operate. A joint venture must have two shareholders out of which one should be a local shareholder while the other can be a foreigner.
3.Distribution Arrangements: This type of business entity requires a business representative who is necessarily a Myanmar citizen.
Other types of business entities are:
1. Limited Liability Company: An LLC company requires one shareholder and one director (who must belong to Myanmar)
2. Joint stock company (PLC): It is also known as Private Limited Company where the business must have a minimum of 7 shareholders with a minimum capital investment of USD 500,000.
3. Branch office: Foreigners can set up branch offices in Myanmar which requires at least 1 shareholder and a company representative. Setting up a branch office in Myanmar requires a minimum investment of USD 50,000 and needs to pay corporate tax of 30%. It is the most cost-efficient business entity to set up in Myanmar.
4. Representative Office: These offices can be set up by foreigners but can be only involved in marketing activities or liaison. It cannot involve any production or any commercial activities.

 

How to Set Up a Company in Myanmar

To set up a company in Myanmar you need to, first of all, obtain a permit to trade. Permit to Trade can be applied at the company’s registration office which needs to be renewed within five years. Companies which are into service companies and manufacturing sectors need Permit to Trade.

Following are the steps to register a company in Myanmar:
1. Select the business entity and register for the company’s name and address
2. Apply for business incorporation certificate from DICA by submitting the necessary documents
3. Obtain Permit to Trade by providing the relevant set of forms such as:
• Registration declaration
• The article of Association and Memorandum stamped and printed in English and Myanmar
• Legal and official documents
• Declaration of the registered address
• Name of the boarding directors
• Authorized signatory person for the company
4. Invest 50% of the capital amount
5. Get official company seal
6. Register for a unique tax number with the relevant tax authority
Generally, it takes around two weeks to set up a company in Myanmar, and it may take approximately 3 to 6 months for the business to conduct operational activities with complete approval from Myanmar Investment Corporation (MIC).

To successfully set up a company in Myanmar, you will obviously need professional help. If you plan to open a company in Myanmar, please contact us, 3E Accounting will provide the best quality service at the most affordable price.