Setting up a business in Myanmar

If you are not from Myanmar you quite likely have some questions regarding the rules and regulations that apply here when you set up a business. We try to provide you with the best information possible. However, as rules and regulations change once in a while, we highly recommend to still double check just to be safe! We try to keep it up to date but nobody’s perfect.

Basically Myanmar offers two different business types to foreign investors.

1.) Business activities that need substantial investments. For example manufacturing, construction, mining, hotels & resorts, agriculture and transportation. Those types have to be registered under the Myanmar Foreign Investment Law (MFIL) through the Myanmar Investment Council (MIC).

2.) The Myanmar Companies Act (MCA) allows foreign service providers to register companies for other services.

The companies mentioned under the first point (MIC) are usually offered tax and non tax incentives but therefore require a higher starting capital / investment and take a little longer to be accepted. Furthermore you have to have more documents ready to apply for such a company.

If you decide to go for number 2.) then you register under the Myanmar Companies Act (MCA)

We’ve been told that the application process takes about 2 months. However, to make things faster, it might be possible to get a temporary incorporation certificate within a few weeks of starting the application.

After your incorporation you will hold a ‘Permit to Trade’ which is valid for three years and then needs to be renewed.

Complete foreign ownership of MCA Companies

Unlike in other countries it is completely possible to own 100% of an MCA (as well as an MIC) company even if you are a foreigner. However it is being implied that you will not be able to do certain kind of businesses like trading or education. An important fact to consider here is that any Myanmar company with one or more foreign shareholders is automatically considered foreign (except in rare cases).

Minimum Capital Requirements

The minimum investment required by a foreign service company under the MCA is US$ 50,000. You would need to invest half of this amount upon approval of the incorporation. The remaining half needs to be invested within 1 year of incorporation.

Myanmar-Startups.com brings you interesting start-up related information from Myanmar, Interviews with up and coming start-ups and offers start-up consulting in order to move our wonderful country forward. Thankfully powered by My-Thai.org & sayfun.me

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