Steps to Start Investing in Myanmar

(Step - 1) Understand Myanmar’s Investment Framework

Familiarize Yourself with the Myanmar Investment Law (MIL)
The MIL governs all foreign investments in Myanmar, providing guidelines for:

• Sectors open to investment.

• Restricted or prohibited activities.

• Investment guarantees and incentives.

Understand Industry-Specific Regulations
Certain sectors, such as mining, telecom, and healthcare, require additional permits or specific licensing. Investors must research these requirements thoroughly.

Engage with Relevant Authorities
Key authorities include:

• Myanmar Investment Commission (MIC): Grants investment permits and endorsements.

• Directorate of Investment and Company Administration (DICA): Handles company registration and compliance.

(Step - 2) Decide on Your Investment Structure

Choose a Business Model
Investors can choose from the following structures based on their goals:

• Wholly Foreign-Owned Enterprise (WFOE): Full ownership by foreign investors.

• Joint Venture (JV): Partnership with local companies or individuals, often required in restricted sectors.

• Representative Office: For market research or liaison purposes without conducting direct business.

• Branch Office: Extends an existing company’s operations into Myanmar.

Determine Sector-Specific Requirements
Some industries require local partners or government approval for operations. For example, restricted activities may necessitate a joint venture with a Myanmar citizen or entity.

(Step - 3) Register Your Business

Company Registration Process with DICA

1. Prepare Required Documents:

   • Memorandum and Articles of Association (MAA).

   • Director and shareholder details.

   • Evidence of the company’s registered address in Myanmar.

2. Submit Application via MyCO:

   • The MyCO portal allows online registration for businesses.

3. Obtain Certificate of Incorporation:

   • Upon approval, receive the Certificate of Incorporation and company registration number.

4. Open a Corporate Bank Account:

   • Required for all businesses to manage finances and comply with regulations.

(Step - 4) Obtain Necessary Permits and Approvals

MIC Permit or Endorsement
For large-scale or strategic investments, an MIC permit may be required. This involves:

• Submitting a detailed proposal outlining the business plan, investment amount, and potential benefits.

• Conducting an Environmental Impact Assessment (EIA), if applicable.

Industry-Specific Permits
Depending on the sector, additional permits might be required from relevant ministries (e.g., Ministry of Energy for oil and gas projects, Ministry of Health for healthcare).

Import/Export Licenses
If your business involves international trade, apply for the necessary licenses through the Ministry of Commerce.

(Step - 5) Lease or Purchase Land and Property

Understand Land Ownership Rules
Foreign investors cannot own land outright but can lease land under specific conditions:

• Long-term leases of up to 50 years (renewable for 10+10 years) with MIC approval.

• Options to lease land in Special Economic Zones (SEZs) or government-designated industrial zones.

Conduct Due Diligence on Property
Ensure that the property has clear legal titles and that the lease agreement complies with Myanmar laws.

(Step - 6) Comply with Taxation and Employment Laws

Tax Registration
All businesses must register for tax purposes with the Internal Revenue Department (IRD):

• Corporate income tax: 22% (as of 2024).

• Commercial tax: Similar to VAT, applied at various rates depending on the product or service.

Hire and Manage Employees

• Follow Myanmar labor laws for contracts, minimum wages, and social security contributions.

• Foreign employees require a work permit and visa.

(Step - 7) Launch Operations

Set Up Office or Facility
Establish your operational base, ensuring it meets zoning and building regulations.

Begin Marketing and Business Development
Adapt your marketing strategies to Myanmar’s local culture and language. Digital platforms like Facebook and local trade fairs are effective for promotion.

(Step - 8) Maintain Compliance

Annual Filings
Submit annual returns and financial statements to DICA via the MyCO portal.

Keep Records
Maintain detailed records of all transactions, including tax filings, payroll, and invoices, as required by Myanmar law.

Engage Legal and Accounting Experts
Work with local professionals to ensure compliance with changing regulations.

(Step - 9) Consider Local Partnerships and Networks

Collaborate with Local Stakeholders
Establish relationships with government officials, local businesses, and community leaders to build trust and gain insights into the market.

Leverage Investment Agencies
Organizations like the Myanmar-China Chamber of Commerce or other international chambers can provide support and networking opportunities.