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.
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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
No.653/691, Merchant Street, Pabedan T/S, Yangon.
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.
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