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Starting a Business in

Myanmar

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Myanmar. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Myanmar to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Conduct a name check at the Company Registration Office (CRO) at the Directorate of Investment and Company Administration (DICA)

    Agency: The Company Registration Office (CRO) at the Directorate of Investment and Company Administration (DICA)

    On the first visit to the Companies Registries Office (CRO) at the Yangon Directorate of Investment and Company Administration (DICA) office, the proposed name for the new business must be checked and cleared. There is an electronic database at DICA since October 2012 that makes it easier to check and to complete this procedure within the same day. The request is made and depending on the workload the check will be done in either a few minutes or a few hours at most, in the meantime the business owner or representative can wait in the office.

    1 day Kyat 1,000 (form fee)
    2

    Request business incorporation certificate

    Agency: Directorate of Investment and Company Administration (DICA)

    Once the name check is complete, the following documents are automatically generated by CRO based on the information provided on the application form (to conduct name check) and are checked for accuracy by the applicant:

    o Application form (company name, list of directors with ID# and addresses, authorized capital, initial paid up capital, address)
    o Memorandum and Articles of Association (for local company, only Burmese version is required, though for English there is also a standardized format available)
    o List of proposed business activities (to be included in the Memorandum of Association)
    o Photocopy of the national registration certificate for each director (includes dates of birth, relationship, occupation, ID#, ethnicity, citizenship, religion). This is a standard form which each director already has in his/her possession.
    o Copy of the township household list (each director to provide)
    o Ward reference letter (each director to provide)
    o Criminal history letter from the township police station (each director to provide)

    The applicant checks the accuracy of the generated documents, and goes back to the directors/shareholders to obtain relevant signatures on the application form and memorandum and articles of association.

    1 day Kyat 5,100 (application fee)
    3

    Obtain signature of the directors before a lawyer or certified public accountant

    Agency: Law or Accounting firm

    The memorandum and articles of association are signed before a lawyer or CPA. The cost of witnessing the signature of the memorandum and articles of association are about 40,000 Kyat.

    1 day Kyat 40,000 for witnessing the signature of the memorandum and articles of association
    4

    Payment of stamp duty and registration fees

    Agency: Directorate of Investment and Company Administration (DICA)

    Payment of stamp duty on the Articles of Association, can be done at the one-stop-service for company registration at DICA.

    1 day Kyat 500,000 (registration fees) + Kyat 60,000 (stamp duty)

    5

    Open Bank Account

    Agency: Bank

    After paying registration fees DICA issues a letter to confirm that the company has been registered. The applicant takes this letter to a bank and opens an bank account in the company's name.

    1 day
    no charge
    6

    Obtain certificate of incorporation

    Agency: Yangon Directorate of Investment and Company Administration (DICA)

    After opening a bank account, the applicant returns to the CRO (DICA) to submit evidence of bank account to DICA and to obtain the incorporation certificate. It needs to be reviewed and signed by the Assistant Director and the Deputy Director of the CRO. The applicant is informed by the DICA when the definitive certificate is ready to be picked up. The certificate is valid for 5 years.

    3 days paid as part of company incorporation fees
    7

    Submit certification of registration documents (CRD)

    Agency: Yangon Directorate of Investment and Company Administration (DICA)

    Entrepreneurs submit Form 6 (Shareholder list) and Form 26 (Director list) to DICA. These forms contain information on whom owns shares in the company, the list of board of directors, a description of the roles, and other pertinent information.

    1 day no charge
    8

    Obtain a seal or a rubber stamp

    Agency: Sealmaker

    According to the law, a company seal is required for a newly constituted firm to operate. However, in practice a rubber stamp is used and accepted. It can be produced in shops in downtown Yangon for a cost of 2,000 kyat.

    1 day Kyat 2,000
    9

    Register for commercial tax

    Agency: Township Internal Revenue Department Office

    Registration for commercial tax (similar to VAT): companies are obliged to register with the tax authorities one month before the start of their business if the business is expected to generate turnover subject to commercial tax (a broad array of products fall into this category, including manufactured goods). Furthermore, within 10 days of starting a business the tax authorities should also be informed.

    DICA compiles a list of newly registered companies each month and sends this information to the relevant townships where the businesses are located.

    1 day no charge
    10

    Registration of employees at the Labor office in township

    Agency: Labor office

    Registration of employees at the ministry is mandatory for labor tax purposes.

    1 day No charge
    11

    Registration with the Social Security Board for social security benefits

    Agency: Social security board

    Company needs to register employees at the social security office for health and pension fund benefits.

    1 day No charge