Myanmar’s remarkable economic growth continues to draw immense financial interests. The country has now opened up to foreign investors. So, if you are a foreign investor, looking to start a company in Myanmar, then you should be aware of the different types of companies that can be set up by foreign investors. Myanmar basically offers two choices to foreigners who intend to register their businesses in this country. Companies such as mining, construction and manufacturing, that entail huge start-up capital, are registered under Myanmar Foreign Investment Law (MFIL). Whereas, foreign companies that involve less start-up capital are required to be registered under Myanmar Companies Act (MCA). The MCA act allows small overseas businesses to register in Myanmar.
Registering and setting up a company in Myanmar has become a lot quicker and easier. In the past, the application as well as the registration process used to go on for over a year however; Myanmar’s Company Registration Office (CRO), states that these processes can now be done within two to six months, at the most. Moreover, the Myanmar government has started providing numerous incentives and assurances in an effort to persuade foreigners to invest in the country.
Myanmar Company Registration Under MFIL:
Under this law, foreign companies can register as wholly owned businesses or as joint ventures. However, under the Special Company Act 1950 (SCA), a joint venture can opt to choose the status of a local company. The minimum capital that is required for company registration under MFIL is USD 500,000. However, in reality, it has been noticed that foreign investors invest close to USD 1000000 – 2000000 depending upon the type of company that is set up. The ‘Permit to trade’ in Myanmar is issued after the credit amount is received. The subsequent step involved for registration purpose will entail submission of the ‘Permit to trade’ along with the application. The entire process can take takes around 4 to 6 months.
Myanmar Company Registration Under MCA:
The minimum investment needed by a foreign company under the MCA is USD 50,000. Half of this amount has to be invested in the company soon after the incorporation application is approved. The remaining half has to be invested in the company within one year of incorporation. The time involved in the whole process of application as well as registration of a company under MCA is around 2 to 3 months. You can also avail the procedure for obtaining a temporary incorporation certificate in a few weeks, after submitting the application. Under the MCA act, the ‘Permit to trade’ is applicable for two years only, after which you will be required to resubmit all the documentation for renewal.
Even though Myanmar company registration processes have become quite simpler, it still involves lot of legal formalities. Therefore, before investing your capital, you may choose to hire the services of an accredited lawyer in Myanmar. Their fees are reasonable at about USD 2000 plus, any other registration related charges but, they can help you in getting started.
Overall, Myanmar’s government is steadily trying to loosen restrictions in several areas in an attempt to make the country more lucrative to both the foreign investors as well as their own citizens. Company registration in Myanmar has become an appealing proposition for anyone who wants to set up their business in this land of growing opportunities.