DICA

Quick Access

Top

(I) RELEVANT LEGISLATION

(1) INVESTMENT LAW

- The Union of Myanmar Foreign Investment Law (November 1988)

Contributes towards attracting foreign capital inflows, with the following main objectives:
• Promotion and expansion of exports;
• Exploitation of natural resources requiring substantial amounts of capital;
• Technology transfer activities;
• Development of energy conservation activities;
• Regional development;
• Creation of more employment opportunities

According to the Foreign Investment Law, foreign investment in Myanmar can take one of the following three forms:

1) Partnerships, limited companies, or wholly foreign-owned subsidiaries. A partnership firm or a limited company incorporated outside Myanmar can conduct business as a foreign branch by bringing in the total capital required by such a branch.

2) Production sharing contracts with one of the State-owned Economic Enterprises (SEEs) for exploration, extraction and sale of petroleum and natural gas and mining operations.

3) Joint ventures, either as partnerships or limited companies with any individual, firm, cooperative, or state-owned enterprise of Myanmar.

Procedures relating to the Union of Myanmar Foreign Investment Law (December 1988)

A foreign investor who intends to invest in Myanmar is required to apply a permit from the MIC (Myanmar Investment Commission) if he wishes to be considered for incentives and exemptions under the Foreign Investment Law. The application procedure is as follows:

A potential Foreign investor, or promoter, must submit the investment proposal to the MIC in a prescribed form, which can be obtained at the following address:

Directorate of Investment and Company Administration
Office Building No.32, Nay Pyi Taw.
The Union of Myanmar

The investment proposal has to be supported by the following documents:
• business profiles and documents supporting financial credibility such as the latest audited
accounts of the person or the firm intending to make the investment,
• bank reference and recommendation regarding the potential foreign investor’s business

standing; and
• detailed calculation relating to the economic justification of the proposed project indicating :
     - the estimated annual net profit, annual income and expenditure statement;
     - annual production/services, annual cash flow statement;
     - the estimated annual foreign exchange earnings and requirements;
     - recoupment period;
     - prospects of creating employment;
     - prospects of increasing national income;
     - local and foreign market conditions;
     - requirement for local consumption;
     - prospects of foreign exchange savings.

Notes:
i. If the proposed project is a 100% direct foreign investment, a draft contract executed with

a State organization that is responsible for the smooth operation of enterprise in the

respective field must also be attached;
ii. If the proposed project is a joint-venture, a draft contract between the foreign investor and

the local counterpart must also be attached;
iii. If the proposed project involves leasing of land, a draft lease agreement must also be
attached; and
iv. If the proposed joint-venture in Myanmar is in the form of a limited liability company, a

draft Memorandum and Articles of Association must also be attached.

If the proposal meets all the requirements set out in the Foreign Investment Law, the MIC will issue a permit (“MIC permit”) with stated terms and conditions.

« Back