Regulations and Incentive in Myanmar (as of June 2020)
Regulations and Incentives are prepared for foreign companies entering Myanmar. Businesses recognized by foreign company is limited, so you need to be careful when entering the market.
100% Foreign Company is permitted
1. Service industry
2. IT company
3. Construction industry
If it is a joint venture company
Even if the industry is regulated by foreign capital, it may be permitted if it is a joint venture (travel industry, logistic). The JV joint venture allowable joint venture foreign ratio for each business has not been announced. For this reason, it is necessary to confirm with DICA for business expansion permission.
(At the time of conducting a joint venture, Foreign Company make financial contributions. It is necessary to note that Local Company may contribute the right to use the land in kind. If the person in charge of the joint venture performs the accounting function, it will not be possible to grasp the information in a timely manner and it will become a black box, so outsourcing to a foreign accounting firm such as our company is desired.)
Industries only by Local Company
Staffing industry, traditional crafts, agriculture, livestock industry, etc.
Industries only by State-owned Company
Radio/TV broadcasting business
Mining and export of pearls, jade and gems
Mining, refining and export of metal
Aquaculture of fish and shrimp
Power generation business
Postal and communication business
Production of products required for security and national defense
Regulations on investment by Foreign Company
There used to be a minimum capital rule, but now you can start a company with a capital of $1.
Parent-Subsidiary loan regulation
Prior remittance from the central bank is required for remittances from overseas. It is necessary to obtain approval in advance including the repayment plan and interest.
Regulations on foreign Company
Prohibition of land acquisition
In principle, foreigners (including corporations) cannot acquire land (Investment Law).
Investment law benefits for leasing (see below)
About the lease contract period
If you enter with foreign capital, the real estate lease term is only allowed for one year. Many companies want to conclude a multi-year contract in order to avoid rising rents in Yangon, but it should be noted that this is not permitted.
In practice, it is difficult for foreign companies to obtain permission to import, so it is desirable for companies that require imports to cooperate with local companies.
Regulations regarding overseas remittance
We accept orders for overseas remittances that involve buying and selling goods and paying for services in a relatively short time. At present, there are some cases of overseas remittances through profit distribution.
Investment Law Benefits
- The land lease period can be up to 50 years and 10 years can be extended twice. The exemption period for corporate tax is 7 years for undeveloped areas, 5 years for intermediate areas, and 3 years for developed areas.