Why Should You Go Ahead With Company Incorporate in Myanmar?
Myanmar is a country with low labour cost and demographic benefits, and that is why many multinationals are turning to this country to set up their offices. This country is rich in natural resources and the government support for multinational cannot be ignored. The GDP of this country is fast growing at a rate of 10% which will be helpful to the investors. They are also interested in getting a company incorporate in Myanmar.
Different Legal Entities for Company Incorporation in Myanmar
- Limited Liability Company:
To set up an LLC, one needs to have at least one shareholder along with one company resident who belongs to Myanmar. Both local companies and foreign-owned companies can establish an LLC in Myanmar.
- Joint venture
Setting up a joint venture with local companies is a great idea if you are investing in those sectors where the government limits foreign ownership. To set up a joint venture, you need to have at least two shareholders along with one local shareholder and one investor who can be a foreigner.
- Public limited company
The minimum capital requirement for setting up a PLC is USD 50,000. One must have at least seven shareholders in the company.
- Branch Office
Foreign companies can establish branch offices in Myanmar to conduct business activities here. The minimum capital investment required to set up a branch office is USD 50,000. Then, the parent company is entirely liable for all the actions and activities of the branch office.
While setting up a company, you need to have at least one shareholder and a company representative who can be a foreigner to take care of the business activities being conducted here.
- Representative Office
Also, this is an excellent option to do research studies and about marketing to understand about Myanmar. To set up a representative office, you need to invest around USD 50,000. Strictly speaking, representative offices cannot conduct any commercial or sales activities which can generate income.
Important Documents to Be Submitted for Company Incorporate in Myanmar
While applying for business registration, the following is the list of materials which must be produced for obtaining business incorporation certificate by DICA:
- Memorandum of Association and AoA
- Form A for Myanmar company registration by Myanmar company regulations 1957
- Completed questionnaire form
- Conduct business activities
- First-year company’s expenditures
- Resolutions from all the directors of the company
- Financial credibility of the investors
- Post submission of these documents, you will receive a temporary permit to trade, but there are some more documents which you need to submit to register your company in Myanmar permanently:
- Two copies of MoM and AoA duly stamped and translated in Myanmar and English
- Declaration of registration
- Complete details of the board of directors
- Address proof of the registered office
- List of authorised persons who can accept the services and notice of process – i.e. who is representing the company in Myanmar and this is applicable for branch office
How Long Does The Process Take?
It takes around three to six months for the new business to start its operation in Myanmar as approved by Myanmar investment commission (MIC). Since 2017, Myanmar government allows registration of companies online, but one needs to take care that all the documents are submitted on time. Then, failing to submit documents can delay the process of company registration in Myanmar.
With the help of 3E Accounting Indonesia services, the process of company incorporate in Myanmar becomes easy as we have a complete team of experts who are well versed with the application of company registration.