Over the past few years, Myanmar has made many changes that make it easier for foreign investors to get into the market.
Steps for registering a company
General rules about how to register a business in Myanmar
Let foreigners own property
In most fields in this country, foreign investors can set up companies 100% owned by foreign investors. But there are also some things that foreign investors can’t do in business. For example:
- Making security and defense products, weapons, and ammunition Tour guide services.
The List of Restricted Investment Activities controls how much foreign ownership is allowed in these industries. Some types of businesses are completely off-limits to foreign investment, while others need a local partner for a joint venture.
Minimum capital requirement
There is no official minimum amount of capital that a company with foreign shareholders must have here. But service companies need at least US$50,000 in money, and manufacturing companies need at least US$150,000. Also, you need at least US$50,000 in capital to set up a branch or a representative office here. The equity of the parent company needs to be used to pay for this.
Address on file in Myanmar
Having a registered address for your business is another thing you need to do before you can start a business in this country. Your business can be registered with either a virtual office or a real office. Entities with foreign ownership can rent a physical office for up to 2 years. If you want to stay longer, you need to get more permission.
Legal entities that foreign investors can use
As a foreign investor, you can set up a business here in a few different ways.
The steps to register a company here are handled by the Directorate of Investment and Company Administration (DICA), which is a secretariat of the Myanmar Investment Commission (MIC). Under the Companies Law 2017, DICA is in charge of registering companies for both local and foreign companies. On the other hand, investment proposal applications must be approved by the Myanmar Investment Commission (MIC).
After you’ve decided what kind of business you want to start, you’ll need to come up with a name for it and a registered address in this country.
Activities to do after the incorporation
Once your business is up and running in Myanmar, you need to do the following:
- 50% of your money should go into your business.
- Send in a list of the company’s directors and owners.
- Get a seal for your business.
- Sign up for tax and social security for all of your employees.
How long does it take to start a business in Myanmar
The above steps are for registering a normal company under the Myanmar Companies Act. Investors who want to apply for a MIC permit still need to send MIC a detailed business plan and more registration forms. If your business doesn’t have a large capital investment, a possible effect on the environment and the local community, or falls into one of the categories above that aren’t allowed, the process of forming a company usually takes about two weeks. Otherwise, it usually takes 3 to 6 months for the Myanmar Investment Commission to approve the right steps for your business to start up (MIC). With the 2017 release of the Myanmar Companies Law, you can now register a business on the new online platform MyCo-Myanmar Companies Online. But the paperwork and steps could be complicated for people who have never done this before, and any mistakes in the paperwork could slow down the process.
