DICA cut off company registration fee for private companies

The Directorate of Investment and Company Administration has announced wide-ranging changes to Myanmar company registration fees that will make life easier for start-ups while raising the bar for public companies.

Director general U Aung Naing Oo told The Myanmar Times yesterday that the goal is to encourage more small and medium enterprises “run by those who really want to do business”. The new charges come into effect on June 1.

How to enter Myanmar Market?

The XYZ BV is a Dutch company that provides serviced offices to its clients in different countries. After the successful establishment in Singapore the XYZ BV is now seeking for a business opportunity to enter the market in Myanmar.

 The XYZ BV is approaching us with the query of Myanmar company registration or to start with a market research by sending first a professional to Myanmar. Further points are the company type that would suite best for their investment strategy, obstacles for foreign companies entering the market as well as the rules and regulations on company, tax and labour law regarding foreign and local employment contracts by complying with Myanmar labour law.

To find the right business start-up based on the possibilities in Myanmar we advised XYZ BV on the advantages and disadvantages of the different company types such as representative office, MIC company or a Non-MIC company relating to capital requirements, foreign investment protection and tax issues.

Foreigners like Mr M, the CEO of the XYZ BV, may set up a 100 percent foreign-owned company either under the Myanmar Foreign Investment Law or the Myanmar Companies Act. If the XYZ BV will set up a business according to the Companies Act the minimum share capital requirement is $50,000 for service companies – and $150,000 for manufacturing companies.

Furthermore, it is required for a foreign company to obtain a permit from Directorate of Investment and Company Administration (DICA). A DICA permit is generally renewable every five years. Under the Foreign Investment Law (FIL) it is at the discretion of the MIC (Myanmar Investment Commission) to decide on the minimum share capital and also the decision is based on the desired business activities.

Before a foreign company is set up in Myanmar, it is required to apply for Permit to Trade from the Ministry of National Planning and Economic Development before it can apply for registration of the company with the Registrar of the Companies Registration Office.
However, the Permit to Trade shall not be understood in the common sense and rather means “Permit to do business”. Although the government did not announce a provision of such permit, no registration certificates or DICA permit for a foreign trading company (distributing and selling products) are issued at present.

Therefore, trading activities are still restricted to Myanmar citizens. For this reason if trading is an important and main part of the XYZ BV. they should consider setting up a 100 percent local-owned company under the Myanmar Company incorporation Act which they can commit to act as agent and/or distributor for their imported goods.

The XYZ BV as a foreign company has to take into account that not all sectors are open for foreign investors. However, the law provides the option to enter into a joint venture with the government for restricted sectors. Providing serviced offices like the XYZ BV is not a restricted sector. Based on the given fact we advise the XYZ BV to form a MIC approved company under the FIL.

Therefore XYZ BV can reach the following incentives and benefits like income tax exemption from the year of starting production or services activities, up to continuous five years and also exemption or relief from income tax on profit which is re-invested within one year and as well as exemption or relief from income tax up to 50 percent of the profit accrued from exports, repatriation of profit and so on.

Furthermore the foreign investor is protected under the FIL against nationalisation and expropriation, which is also guaranteed by law. Additionally, the XYZ BV, if registered under the FIL is eligible to lease not only from the state but from private individuals as well.
Lease periods extend up to 50 years and after this period, the Myanmar Investment Commission may authorise an extension of further 10 years, which is again renewable for another 10 years.

Related : What you need a Company Registration in Myanmar (Burma)?

What you need a Company Registration in Myanmar (Burma)?

Company Registration in Myanmar (Burma)

Registration is the first step a businessperson will be required to take before making an investment or company incorporation in Myanmar, whether that person is a citizen of Myanmar or a foreigner. In accordance with the Myanmar Companies Act of 1914 and the Special Companies Act of 1950, a company may be registered in one of the following forms:

•  As a private OR public company by Myanmar citizens
•  As a foreign company OR branch of a foreign company
•  As a joint venture company
•  As an association/nonprofit organization

First steps include:

• Check availability of company name at DICA

• Obtain company registration forms at DICA & pay stamp duty

• Submit form and Pay company registration fee

Related : Corporate Secretarial Service in Myanmar


Investment Application (MIC)

The Myanmar Investment Commission (MIC) is responsible for verifying and approving investment proposals and regularly issues notifications about sector-specific developments. The MIC is comprised of representatives and experts from government ministries, departments and governmental and non-governmental bodies.

• Use the DICA website to retrieve information on requirements for your MIC permit application
• First, investors must first submit a proposal to the Myanmar Investment Commission
• If the proposal meets the criteria, it will be accepted within 15 days
• If accepted, the MIC will review the proposal and reach a decision within 90 days.

Company Incorporation in Myanmar (Burma)

Extrovert Myanma provides consulting services in Myanmar including: (a) due diligence, market research, SWOT analysis, planning business operation & new business organization; (b) MIC permit, Myanmar company registration and starting business operation, as well as, (c) provide human resources (local staff), administrative, liaison & business representation (agency), and management support services in Myanmar. We use services of experienced Myanmar lawyers for consulting projects involving specific legal matters, including trade mark registration, product registration, trade disputes, legal review & representation, etc. Please visit Services page for details of our other services.

We provides complete range of investment consulting services required for (a) joint venture (JV) between foreign and Myanmar investors and (b) 100% foreign owned company registration in Myanmar. For strategic investments, in connection with new company registration in Myanmar.

•  Project evaluation, local content management and localization;
•  Preparation of initial environmental examination (IEE) report, environmental impact assessment (EIA) report, and social impact assessment (SIA) report;
•  Help preparing application for MIC permit (permit given by Myanmar Investment Commission), submission of MIC permit application, liaison with MIC and respective other Government Ministries / Departments, attending meeting along with clients in connection with MIC’s approval;
•  Myanmar Company Registration with DICA (Directorate of Investment and Company Administration); and
•  Office management services, engineering services and project management support services, during project implementation.

 Based on initial project evaluation, clients / investors may decide to register companies directly with DICA without MIC permit where it is unlikely to get MIC permit.

In Myanmar business can be conducted through one of the following types of business organizations:

 Companies limited by shares. i.e., local Myanmar companies; joint venture companies; 100% foreign owned companies

•  Branch Offices or Representative Offices of a foreign company
•  Associations not for profit
•  Partnerships

Detailed and updated information about company registration procedures can be obtained from the office of the Directorate of Investment and Company Administration (DICA), under the Ministry of National Planning and Economic Development; the information “Myanmar Investment Guide” can also be found at DICA’s website. Information related to Trading License and Export & Import can be obtained from Export Import Registration Office, Directorate of Trade Ministry of Commerce.

Myanmar law allows foreign investors to set up a hundred percent foreign-owned company or a joint venture with a Myanmar partner. Foreign companies with small investment may register under the Myanmar Companies Act, with a Permit to trade; however large investments may preferably get a permit from Myanmar Investment Commission (MIC) under the Myanmar Foreign Investment Law (FIL) to get certain state / sovereign protection of investment in Myanmar. Myanmar Investment Commission (MIC) is reviewing most of the foreign investments in Myanmar, and coordinating with other government departments and organization.

The governing law for the limited companies is the Myanmar Companies Act 1914. Under section 27A of the Act, a foreign company, whether a hundred percent owned or a joint venture and a branch /representative office is required to obtain Permit and Registration. A company with share contribution of the State shall be registered under the Special Companies Act 1950 and the Myanmar Companies Act 1914. A Joint-Venture with the State equity formed under Special Companies Act is exempted from obtaining a Registration.

For company registration with DICA without MIC permit under Foreign Investment Law, the minimum capital to be brought in Myanmar through bank transfer is as follows:

 Industrial, Hotel and Construction Company – US $ 150,000.
 Services, Travels and Tours Company, Bank Representative Office and Insurance Representative Office – US $50,000.

 ompany registration process with DICA includes checking availability of any proposed company name, submit required documents, payment of registration fee, issue of temporary registration card and permit to trade, documentation for foreign currency transfer, issue of permanent registration card, etc.


Our clients and business associates are from Japan, USA, UK, Germany, Norway, South Africa, Australia, Singapore, India, Thailand, Myanmar, etc. Our company provides consulting services in Myanmar across industries: • Oil and Gas • Power • Renewable Energy • Mining • Telecommunication • Information Technology & IT Enabled Services • Real Estate • Infrastructure • Agriculture • Medical & Health Care • Manufacturing • SME • Environmental Engineering and Waste Management • Fisheries and Aquaculture • Garments and Apparel • Handicrafts and Antique • Banking Finance and Insurance.

Related : Corporate Secretarial Service in Myanmar

In Myanmar, we provides one-stop customized consulting service to foreign investors for entry into Myanmar’s emerging market and business match-making with local companies. Our services cover market research and due diligence, technical feasibility, IEE-EIA-SIA, MIC permit, Myanmar company registration, liaison with Government Ministries and Departments, localization of business, HRM-Recruitment-local content management and project management support services. For details of our services please visit SERVICES page.

In Myanmar, we have a Panel of Advisors and Senior Consultants who retired from various Myanmar Government Ministries / Departments / Enterprises. MiTA Myanmar Team consists of professionally qualified and highly experienced personnel with international experience.

Myanmar is in transition for fast economic development and Government is making new investor friendly rules & regulations for real development. The laws & regulations are changing very fast. You may contact relevant Government Ministries or consulting companies advising investment in Myanmar for updated information in this connection. You may please Contact MiTA to know more about the process of company registration in Myanmar: (a) documents required to register a company with Directorate of Investment and Company Administration (DICA), Ministry of National Planning and Economic Development, Government of Myanmar; (b) time frame for completing company registration in Myanmar; (c) Government fee for Myanmar company incorporation; (d) our consulting services in Myanmar and professional fees.

Corporate Secretarial Service in Myanmar

Over time, companies can go through much of the personal, corporate secretarial service in Myanmar , financial and geographic changes that require the help of legal experts. Whether the issue of redistribution.

The actions and changes in the capital, or create a new office, we can offer our

Customers in the formulation and provide adequate documentation for the occasion
Government agencies. In addition, we can also release Publications Media
He said the public of changes.

In order to avoid any complications that may arise in the line, and we are in interactive
Encourage our customers to get our advice and services they will get. We have a group of
Include the administrative services for business:

•      Change to shareholders
•      Change of Director
•      Change of address
•      Raise capital

    There has to be a current interactive customer to enjoy our services. Do not hesitate to
Please contact us if you have any questions or need our services, and we will contact you
Off.

Read Also : Finding Business Partner in Myanmar (Burma)

4 Types of Company in Myanmar

LLC - Limited Liability CompanyCompanies may be a limited liability company, whether public or private sector in Myanmar. It must be a limited liability private companies at least two shareholders, and must be of the corporation, have at least seven shareholders. There is currently no foreign public limited liability company in the country. Companies can with limited liability with 100% foreign investment.

There are two types of company in Myanmar: the company, which received approval from the Commission of Myanmar Investment (often called the MIC Inc.) or standard company that is registered under the Companies Act Myanmar (often called MCA Inc. or Decca company to be registered with the Directorate of Investment and Management.) and the difference between these two types of companies is that companies have a minimum microphone higher capital requirements are usually large companies that operate in large projects. Eligible for investment incentives under the Foreign Investment Law Mic companies, while companies MCA is not.

Branch registered CompanyOpening a branch in Myanmar Company Registration, you do not need to get permission from the MIC if registered under the Military Commissions Act, and the development of the presence in Myanmar is less time consuming and difficult. It may also be companies under this structure to be registered as manufacturing or services. Foreign branches are taxed in the tax on top of regular corporate company 35 percent compared with the rate of 25 percent per year for companies incorporated under the CA or MFIL with.

Representative Office CompanyDo not allow representation offices for conducting business activities that generate direct income Myanmar or within a limited basis in their jobs. However, it is relatively easy to configure. The representative office is able to work as a link between its headquarters abroad and no market research on the ground, and establish a presence without profit through this representative office performance projects in particular.

Joint venture Company

 It can form joint ventures in partnerships or limited liability companies with the people of Myanmar, a private company, cooperative or state enterprise.



Also Read :Company Registration in Myanmar

Company Registration in Myanmar

Investors interested in Company Registration in Myanmar, Start first have to decide what kind of structure they want to stay. The options are a sole proprietorship, a partnership, a limited liability company (LLC), a registered branch of a foreign company, or a joint venture.

After deciding on the type of work you want to configure have to apply for permission to trade in the company's registration office, which is under the supervision of the Directorate of Investment Management. CRO is the main office in Nay Pyi Taw, but the branch in Yangon has been recently opened. Here are the documents that you need to apply for permission to trade:
(1) Model: A Myanmar system companies in 1957(2) Draft of incorporation and rules of procedure contract(3) completed a questionnaire correctly(4) Activities to be performed(5) and Myanmar's estimated bear the expenses of the operations during the first year(6) the financial credibility of the company / person(7) Council decision Director, if it is a joint company.

After the submission of these documents are temporary and get a trade, you will have to make another series of forms to record your permission. Clarification: first obtain a permit to trading. With your permission to trade then you can register your company. This is the documentation that you need to register the company (as in CRO):(1) Two sets of the Memorandum of Association and Articles of Association duly stamped and printed in both English and Myanmar(2) Advertising Joining(3) A statement of the legal and official documents of version(4) A statement of the position of head office(5) certified translation by a competent interpreter(6) a list of administration(7) a list of the person (s) authorized to accept service of process and notice Myanmar, on behalf of the company (ie the branch of a foreign company.)

After registration you will need to pump the required amount of capital in the business (this depending on the type of work you are configuring) AirportsThe above process is normal for the company under the Companies Act Myanmar. Investors who wish to apply for the Myanmar Investment Commission (MIC) permission must submit a detailed business plan and financial model of the MIC, as well as fill out additional forms. To request MIC statement is a good idea to have a local company to help in this process.