Understand the Jurisdictions Setup Requirement Before Proceed Your Myanmar Company Formation
Not long ago, Myanmar had a lot of restrictions when it came to forming foreign-owned entities. There were too many procedures and red tapes, and though the process is still demanding at the moment, it is relatively more relaxed compared to a few years back. If you need Myanmar company formation, you may still be successful if you decide to go it alone, however, using incorporation services such as those availed by 3E Accounting will take a lot of guesswork out of the way, and you will spend the least time possible in having your company set up. Therefore, feel free to get in touch with us if you need help with any kind of business incorporation in Myanmar.
Types of Business Entities in Myanmar
Here is a look at some of the business vehicles you may register in Myanmar
Limited Liability Company – 100% foreign Owned
To set up a limited liability company in Myanmar, a minimum of two shareholders and two directors will be needed. If you are a foreign investor keen on setting up a 100% foreign-owned limited company in Myanmar, you will have to seek approval from the Myanmar Investment Commission. Anyway, both the shareholders and the directors don’t have to be residents of Myanmar. If you are setting up a manufacturing company, a capital requirement of US$150,000 will be applicable. For the service industry, on the other hand, the minimum capital requirement is US$50,000.
During Myanmar company formation, we always advise our clients to also apply for a foreign investment permit from the Myanmar Investment Commission. The foreign investment permit is recommended due to the following benefits-:
- It allows for easy access to foreign currencies
- It comes with increased guarantees of remitting earnings abroad
- It comes with tax holidays during the first seven years of operation
- It also allows for tax exemptions on some raw materials and equipment
If you need any help in registering a limited liability company or you would like us to help you get the foreign investment permit, you can always get in touch with us, and we will be delighted to offer every assistance we can.
Myanmar Joint Venture Company
For the incorporation of a joint venture in Myanmar, the law stipulates that there has to be at least one foreigner and one local shareholder. In this manner, many foreigners prefer using joint ventures to power their operation in Myanmar. However, you should be advised that joint ventures are not allowed in every industry in Myanmar, and there are a few industries where investment by foreigners as the joint venture is strictly prohibited. Talk to us if you need more information on how to start a joint venture, or if you want to know the industries where full foreign ownership of joint ventures is prohibited.
Myanmar Public Limited Company
Setting a public limited company in Myanmar comes with a certain degree of prestige, owing to the perception that people have about such companies. In Myanmar, to set up a public limited company, a minimum of seven shareholders and two directors is mandatory. Both the directors and the shareholders are subject to the same requirements as for the formation of LLC. The financial statements of a PLC will, however, be subjected to all the credit rules. You will find it interesting to know that it is not a requirement for public companies to be listed in the Myanmar Securities Exchange – only two companies are listed in the exchange.
Branch Office in Myanmar
A branch office is another option foreign investors have for Myanmar company formation. A branch office is simply an extension of a foreign company into the country. It is a legal entity, only that its operations will be dependent upon the operations of the parent company. It will also be subject to a corporate tax at a rate of 35%. As such, the tax rates for branch offices are higher than the 25% for the companies incorporated in Myanmar, and sometimes it makes sense to start a subsidiary so that you avoid the high tax regime for operating a branch office in Myanmar.
Representative Office in Myanmar
Foreign companies can also start representative offices in Myanmar. These offices allow 100% foreign ownership. Anyway, they can’t engage in any commercial or production activities.
Work With for Faster Results
In as much as the government of Myanmar may have lessened for the procedures for foreign incorporation, there is still a lot of work to be done before you can have your company full incorporated. If you are a foreign investor, navigating through the rules and regulations to understand exactly what you need to do maybe a great challenge. Again, getting the incorporation steps and processes right as a foreigner will also be a huge challenge.
This is why we offer you quality, affordable and reliable Myanmar company formation and business registration services. With us by your side, you will forget about the heavy lifting since our lawyers, accountants and tax experts will work tirelessly to help you register your preferred investment vehicle. Call us today for further consultations or if you would like us to embark on the process of registering your company.